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Technology Stocks : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: MeDroogies who wrote (17736)	1/5/2003 8:16:59 PM
From: Michael Olin	Read Replies (3) \| Respond to of 19079

Management is paid well to begin with, and often have expenses covered to a very large degree. Larry hasn't received any salary since 2000 ($208K) or bonus since 1999 ($2.75M). He received an option grant for 40 million shares in 2000 and that is intended to be his entire compensation through fiscal 2003. CFO Jeff Henley continues to receive $825K in salary, but his bonus has also been decreasing from $1.3M in 2000 to $100K in 2001 to zero in 2002. His cash bonus has been replaced by option grants. Oracle has made much of "eating their own dog food" and converting all of their internal systems to use the software they are selling to others. As far as the top two executives go, they are following a similar path, with stock being the "dog food". If it's good enough for the shareholders, it should be good enough for the insiders. Then again, nobody ever offered to sell me shares at a discount, or reprice them for me when their value dropped. Being an insider still has its privileges (If you're high enough on the corporate ladder. I know plenty of Oracle employees who are not so enthusiastic about their options anymore!) I'll be the first to suggest that considering how much cash compensation these two have received over the years, the replacement of cash with options will not cause any lifestyle changes even if the share price never exceeds the exercise price. It is, however, a more substantial gesture than most companies have ever made. -Michael