Shareholder urges Oracle to change compensation committee
CtW Investment Group advised its fellow Oracle shareholders to vote against the current remuneration packages of executives in the company. The private equity firm similarly called for the withdrawal of support for the directors comprising the compensation committee of the board of directors of the technology firm.
In a letter to its fellow shareholders, CtW wrote that Oracle CEO Larry Ellison and other top managers were overcompensated compared to their peers and competition. This had resulted in inferior returns for Oracle. It further write, "While the company insists that Ellison's high pay is justified by his founder-CEO status, we note the stark contrast to other technology found-CEO." The letter then cited the compensations of founder-CEOs in Amazon.com, Google Inc. and Apple Inc.
CtW is one of the members of the labor-group Change to Win and it owns six million shares in the largest database software manufacturer. In its letter, it also opposed the re-election of Bruce Chizen, George Conrades and Naomi Seligman, all of whom comprise the firm's compensation committee.