Oracle (NYSE: ORCL ) may not be the the Rule Breaker it once was, but that didn't stop the company's board of directors from issuing CEO and co-founder Larry Ellison a massive $76.9 million pay package. It's more than he deserves, Fool contributor Tim Beyers says in the following video.
Just look at the current quarter. Revenue could decline as much as 4% or increase as much as 6%, management said in its guidance. Cloud-based competitors such as saleforce.com (NYSE: CRM ) are taking a toll on Oracle's growth prospects. (Ironic, when you consider that Salesforce is also a partner.)
Ellison, for his part, turned down a bonus of $1.2 million because the company "did not meet" internal growth prospects. Yet he still received 7 million options at a weighted average exercise price of $29.72 a share. He'll earn millions on even modest gains in the stock price, Tim points out.
Is there a better way to structure Ellison's pay? One that's better aligned with the interests of outside shareholders holding for market-crushing gains? Tim answers this question and more in the video. Please click to watch now and then leave a comment to let us know where you stand.
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If you're already Larry Ellison's neighbor, congratulations. But if, like the rest of us, you're part of the 99%, you might want to take a look at our latest special report. In it, our analysts identify three less-than-luxurious stocks the 1% may be overlooking. Just click here to read it now.