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

To: Michael Olin who wrote (17737)	1/5/2003 10:20:38 PM
From: hueyone	Read Replies (1) \| Respond to of 19079

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. Larry Ellison was the highest paid executive in fiscal 2001, exercising options worth 706 million. Michael Dell was number two, but wasn't even close at 198 million. Scroll down the bottom of this article and check the table titled "Methodology" for the highest paid execs: e-insite.net Oracle is also mentioned in the middle section of the article that is titled "Big rewards, No risks": JDS Uniphase isn't the only example of excessive compensation due to options. The five top executives at Oracle Corp., Redwood Shores, CA, took home $855 million in compensation during the fiscal year ended May 31, 2001, including CEO Larry Ellison's $706 million. Four of the five executives made the EB (highest paid) list, with Ellison No. 1. Yet Oracle's stock price fell more than 57% during the same period. Earnings were down 59% and EPS dropped 58%. Although Oracle has been profitable for many years, the Corporate Library rates it as underperforming the S&P 500 and its peers on total shareholder return. Regards, Huey

To: Michael Olin who wrote (17737)	1/5/2003 10:33:20 PM
From: hueyone	Respond to of 19079

On another note, Oracle does not look so bad on S&P Core Earnings measures, which include stock option expense against income among other things. S&P uses the Black Scholes method of valuing options at time of issue and then amortizes the expense over the vesting periods, which is three to four years for the average company. One of the reasons Oracle income is not impacted by stock options so badly on the Core Earnings measure is that I believe many of those options that Larry exercised in fiscal 2001 were granted a very long time ago, some as long ago as 1991 (according to Lizzie Tudor), so these old options, which have long since vested, are not counted as an expense in the current S&P Core Earnings nor are they counted in the footnotes of the Oracle 10ks that gives stock option expense figures. On the bright side, Oracle has not been issuing options lately at a rate to totally wipe out earnings like some companies have. However, we usually never know for sure until somewhat belatedly when the 10ks come out once a year. Here are the S&P Core Earnings Measures for companies through July, 2002. bwnt.businessweek.com Here is the explanation of Core Earnings: www2.standardandpoors.com Regards, Huey