Ellison gives up potential pay out
Larry Ellison, Oracle Corp's CEO, had agreed to give up potential payout valued approximately USD500 million. The move was to settle accusations of conflict of interest in a 2011 acquisition by Oracle of a company that Ellison controlled, stated in court documents.
The settlement was on the previous acquisition of Pillar Data Systems Inc which was majority owned by Ellison. Oracle Corp did not give cash up front payment for the acquisition transaction, said a Reuters report. The report went on saying that Pillar agreed to be paid in the future depending on its performance through 2014.
Under the deal, Ellison would get the first USD562 million of payment related to the purchase, said a court filing. Whatever the payment would be, Ellison must pay 95% of it to Oracle, according to the settlement.
The suit against Oracle's acquisition of Pillar was filed in a court in Delaware by two pension funds. The funds, City of Roseville Employees' Retirement System and Southeastern Pennsylvania Transportation Authority, said that the acquisition deal was tainted by conflicts of interest and would be unfair to Oracle.