- Oracle beat analyst expectations with adjusted earnings per share of $1.06 compared to the anticipated $1.00, and revenue at $9.8 billion compared with expectations of $9.79 billion.
- Executives at Oracle made an average of $8.6 million in fiscal 2020, ranging from $1.4 million for Mark Hurd, the former CEO who passed away in late 2019, to more than $20 million for Dorian Daley, who acts as EVP and general counsel.
- Oracle grants large equity awards every few years. The CEO, CFO and chief technology officer did not receive a large equity grant in fiscal 2020, explaining the higher total reported compensation for the lower-ranking compensation in the disclosure.
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Oracle released quarterly earnings Thursday, beating expectations for both revenue and earnings per share.
The firm posted adjusted earnings per share of $1.06, higher than the expected $1.00, and revenue of $9.8 billion compared with expectations of $9.79 billion.
The year has been eventful for the software giant — its former co-CEO Mark Hurd passed away in late 2019, shifting sole chief executive management responsibility to CEO (former co-CEO) Safra Catz. The firm also continues to be involved in a bid for TikTok’s US business.
As the chaos of 2020 continues to unfold, billionaire former banker and now-CEO Catz is paid well to lead the charge — but, surprisingly, other executives at Oracle are making much more than her. Let’s unpack why.
Oracle’s equity grants come every few years, complicating pay at the top of the firm
Oracle grants equity awards frequently, but not every year. While Lawrence Ellison, co-founder and chief technology officer, Catz, and Hurd did not receive equity awards in 2020, they received option awards worth $103.7 million in grant date fair value in 2018.
These awards become available to the executives when they hit certain goals each year, but, according to the company’s most recent proxy statement, “due to the rigor and long-term nature of the underlying performance goals, none of the goals were achieved in fiscal 2020, 2019 or 2018, and thus no tranches of the PSOs have been earned to date.” This means that the executives didn’t meet their goals, so they don’t get to access the award.
The other three executives — Daley, Henley, and West, who serve as the general counsel, vice chairman, and controller and chief accounting officer, respectively — received equity grants in fiscal 2020, each valued at more than $4.9 million. For this reason, Daley, Henley, and West have much higher total reported compensation in 2020 than higher-ranked officers at the firm.
In the chart below, we show compensation for each executive as it was presented in the summary compensation table in Oracle’s proxy statement, split out by element. Hold your cursor over the labels at the top to highlight the different parts of the executives’ compensation, and reference the bulleted list below for more information on each compensation element.
Executives’ stakes in the firm
As a co-founder Ellison owns a lot of shares in Oracle — he owned nearly 1.2 billion shares as of their 2020 proxy statement, representing 38.3% of shares. At market open Thursday, this stake was worth $69.2 billion.
Other executives also own large stakes in the company. The rest of the executive team had stakes worth the following. Number of shares reflect data in the proxy statement, and the dollar amount is calculated off of Oracle’s share price on Thursday at market open:
- Safra Catz: $1,256,767,410
- Dorian Daley: $58,049,506
- Jeffrey Henley: $288,452,171
- William Corey West: $30,329,093