Mark Hurd won’t make much in salary as c0-president of Oracle (NASDAQ: ORCL)–only $950,000. His bonuses will be relatively modest as well. In a letter from the company:
“We offer you a starting annual base salary of $950,000. In addition, you will be eligible for a bonus under the FY11 Executive Bonus Plan of $5,000,000 for 100% target achievement, and subject to an overall bonus cap of $10,000,000.”
That really is not much for a firm of Oracle’s size. Hurd may have accepted the offer for reasons other than money. Perhaps he just wanted to annoy his former employer Hewlett-Packard (NYSE: HPQ). On the other hand, he may believe that he will eventually take the CEO job from Larry Ellison who has, from time-to-time, made more than $50 million a year.
And, the options grant could be very lucrative:
“In addition, the Compensation Committee has also given approval to grant you an Option to purchase an additional 5,000,000 shares of common stock per year in each of the next five years (for an aggregate of 25,000,000 additional shares over the next five years) as part of Oracle’s annual corporate-wide option grant process, assuming you are still employed at Oracle in the same capacity on the date of each such annual grant”
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Douglas A. McIntyre
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