Global CIO: Sam Palmisano And Larry Ellison Deserve Their Big Paydays
The anti-capitalism community will howl, but the CEOs of IBM and Oracle deserve every penny of their big comp deals. Sorry, howlers, but the numbers tell the story.
Total compensation of $1.84 billion over those 10 years.
The Journal specified that almost all of those earnings (97%) came from realized gains on stock options—that is, the overwhelming majority of Ellison's pay for the decade was tied very specifically to the success of the company he founded and in which he holds about a 23% ownership stake.
Isn't that the ideal model: having top executives with not just some skin in the game but massive chunks of it?
Meanwhile, the Journal's analysis also says that in that 10-year period, Oracle did a great job for shareholders as its market cap almost tripled, from $36 billion to $98 billion.
On top of that, in the 20 months since the end of the 10-year period tracked by the Journal, Oracle stockholders have seen their holdings soar another 70% as Oracle's market cap as of Wednesday afternoon was $168 billion.
Unfortunately, facts don't carry much weight with crusaders looking to undercut the capitalist system by attempting to demonize high-achieving and high-earning executives, so have your earplugs close at hand as the Indignance And Outrage Lobby gets set to swing into action.