Shareholders reject executive compensation scheme for second straight year
Shareholders of Oracle Corp had rejected the pay package allotments for Chief Executive Officer Larry Ellison and other top managers for a second straight year. These shareholders followed the advice of a proxy firm that said the compensation scheme was not attuned to company performance.
During the annual meeting of Oracle shareholders held in Redwood City, CA., the company did re-elect all of its directors, which is not in line with the advice of Institutional Shareholder Services. ISS had recommended the ouster of Chairman Jeff Henley and seven other independent board members, which included Bruce Chizen, George Conrades and Naomi Seligman, who formed the compensation committee.
While the shareholder vote on executive compensation is not binding on the corporation, the vote showed the increasing discontent amongst the shareholders of Oracle. In the last few months, Oracle had clashed with labor groups such as Change to Win, which had called out the pay policies of the software firm.