September 8, 2003 5:25 PM PDT

Ellison to get $900,000 salary in 2004

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Oracle CEO Larry Ellison will receive a salary of $900,000 for fiscal 2004, marking the first time in three years he has received a salary, according to a proxy Oracle filed Monday with the U.S. Securities and Exchange Commission.

Ellison, who has also gone without a bonus since 2000, is also eligible for a bonus under the Executive Bonus Plan, which is subject to shareholder approval. Oracle investors will vote on the bonus plan and other issues during the company's annual meeting on Oct. 13. The exact amount of Ellison's bonus has not yet been determined, but the plan would allow for a maximum of $5 million.

"The chief executive officer's compensation plan was intended to more closely align his compensation with the performance of our common stock. Consistent with this compensation plan, in fiscal year 2003, the chief executive officer received no salary or bonus," the proxy said.

Last week, Ellison became eligible for the salary as of Sept. 1. The salary will bolster the 900,000 options he was granted last July with a strike price of $12.60 a share. Oracle shares closed up 40 cents to end Monday's regular trading session at $13.48.

Although Ellison did not received a salary and bonus for three years, Oracle's board in June 1999 granted him an option to purchase 40 million shares with a strike price of $6.88 a share, adjusted for two 2-for-1 stock splits. The large stock grant was issued in fiscal 2000, in lieu of all salary, bonuses and option grants until fiscal 2004, according to the proxy.

Ellison owns a 26.4 percent stake in Oracle.

The company reports its first-quarter earnings Friday.

 

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