Oracle plans to give Hurd $950,000 annual salary

Sep 08, 2010 By ANDREW VANACORE , AP Business Writer
In this March 6, 2008 photo, (then) Hewlett Packard Company CEO Mark Hurd speaks at HP headquarters in Palo Alto, Calif. Oracle Corp. plans to pay newly appointed co-President Mark Hurd a base salary of $950,000 annually and said Wednesday, Sept. 8, 2010, the ousted Hewlett-Packard Co. CEO is eligible for a target bonus of $5 million in the current fiscal year. (AP Photo/Paul Sakuma, file)

(AP) -- Oracle Corp. plans to pay newly appointed co-President Mark Hurd a base salary of $950,000 annually and said the ousted Hewlett-Packard Co. CEO is eligible for a target bonus of $5 million in the current fiscal year.

Oracle released the details of Hurd's pay package in a filing with the Securities and Exchange Commission on Wednesday.

Hurd's pay package includes stock options totaling 10 million shares. The company said Hurd's options will carry an exercise price equal to the market value of the shares on the date they are granted, which the filing did not specify. If he stays with the company, Hurd will be awarded options to buy another 5 million shares each year for the next five years.

Oracle said Hurd's bonus for fiscal 2011, which ends in May, is targeted at $5 million but could reach $10 million. The company did not specify the conditions under which the bonuses would be awarded.

The new package will come on top of a severance payment from HP that could end up topping $40 million.

Hurd resigned as HP's CEO last month following an investigation that uncovered inaccurate expense reports related to Hurd's outings with an HP contractor who claimed that her work at HP dried up after she rebuffed Hurd's advances. Hurd has denied making any advances on the woman and has insisted he didn't prepare his own expense reports.

Oracle named Hurd as its co-president on Monday, but HP sued Hurd a day later to block him from joining Oracle. HP is worried Hurd will use his knowledge of the company to give Oracle an unfair advantage. Lawsuits of that kind often end with a court ordering an executive to avoid certain parts of their employers' businesses. The could also delay when Hurd can actually start work at Oracle.

Hurd's move to Oracle has injected new friction into Oracle's relationship with HP. The two companies have cooperated for years, with HP selling corporate servers and Oracle providing the software that helps organize the information stored on them. But Oracle, which is based in Redwood City, Calif., moved into direct competition with HP in the hardware business when it bought Sun Microsystems for $7.4 billion last year.

has not been shy about handing out big salaries and bonuses.

In the fiscal year that ended in May, the company awarded its other co-president, Safra Catz, a salary of $800,000, a performance-related bonus of $3.9 million and stock options valued at $31.7 million.

Founder and CEO Larry Ellison, among the world's richest people, drew a pay package worth roughly $70 million, according to an Associated Press analysis of Oracle's securities filings. It consisted of a base salary of $250,000, a performance-based bonus of $6.5 million, stock options valued at $61.9 million and other perks totaling $1.5 million.

Hurd's pay at HP did not quite reach that magnitude. During HP's most recent fiscal year, Hurd was awarded a pay package as CEO valued at $24.2 million, according to an AP analysis. His base pay came to $1.3 million, with bonuses totaling $15.8 million and restricted stock valued at $6.6 million.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the , which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Oracle names ex-HP CEO Mark Hurd co-president

Sep 07, 2010

(AP) -- Oracle Corp. has hired former Hewlett-Packard Co. CEO Mark Hurd to help lead the database software maker in a pivotal moment in Oracle's 33-year history as it tries to muscle in on more of HP's turf.

Oracle, ex-HP CEO Hurd in talks for job

Sep 06, 2010

(AP) -- Former Hewlett-Packard Co. CEO Mark Hurd is in talks to take a top executive job at Oracle Corp., the database software maker run by his friend Larry Ellison, a person with direct knowledge of the discussions said ...

EMC CEO gets $9M pay package in 2009, down 23 pct

Mar 19, 2010

(AP) -- The pay package last year for EMC Corp. CEO Joe Tucci was 23 percent lower than in 2008, a reflection of lower equity awards and cuts to the data-storage company's executive salaries.

IBM CEO's pay ticked higher to $21.2M in 2009

Mar 09, 2010

(AP) -- The pay package for IBM Corp.'s CEO notched slightly higher in 2009, according to calculations by The Associated Press, as he was rewarded for a year in which the technology company wrung out big profit gains despite ...

Accuser in HP case claimed work was cut

Aug 18, 2010

(AP) -- The woman whose sexual harassment allegations led to the ouster of former Hewlett-Packard Co. CEO Mark Hurd claimed her work with the company dried up because she rebuffed Hurd's advances, a person close to the investigation ...

Recommended for you

China's Xiaomi raises more than $1 bn in funding

10 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.