Global CIO: Sam Palmisano And Larry Ellison Deserve Their Big PaydaysGlobal 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.
February 2, 2011
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. RECOMMENDED READING: Global CIO: Larry Ellison Will Need A Time Machine To Catch Us, Says IBM Global CIO: Larry Ellison's 10-Point Plan For World Domination Global CIO: IBM Zings Oracle And HP Over Lack Of Vision Global CIO: Larry Ellison And The New Oracle Rock The Tech World Global CIO: Is IBM Or Apple The World's #1 Tech Brand? Global CIO: Larry Ellison's Top 10 Reasons For Buying Sun Global CIO: Apple Hammers Google Over Tablet Flaws Global CIO: HP's New Strategy Will Intensify Battles With IBM And Oracle Global CIO: The Top 10 CIO Issues For 2011 Global CIO: Steve Jobs Declares War On Google Global CIO: Apple Storms The Enterprise As iPad And iPhone Surge Global CIO: The PC Is Dying; Long Live The iPad! Global CIO: The Year Of iPad: Apple Booms In Business And In China Global CIO: Inside Steve Jobs' Head: The Supremacy Of Software Global CIO: The Top 10 Most Influential IT Vendors (Apple And Facebook?) Global CIO: The Awesome Transformative Power Of The Apple iPad Global CIO: Google CEO Eric Schmidt's Top 10 Reasons Mobile Is #1 Global CIO: IBM's Blazing New MainframeWins Raves From Citigroup Global CIO: 10 Reasons CIOs Will Get Fired This Year Bob Evans is senior VP and director of InformationWeek's Global CIO unit.
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