Saturday, April 26, 2014

Axiom: Larry Ellison is paid too much

I offer this as a fact that makes sense to me:

Larry Ellison is overpaid as CEO of  Oracle Corp., a computer hardware company.

Last year Ellison’s total compensation was $78.4 million.

And by the way, Oracle based his incentive compensation on "non-GAAP pretax profit," which means it's not based on generally accepted accounting principles.

Let’s assume he puts in the equivalent of 60 hours a week. He’s making $25,128 an hour. And we’re not even talking about the future retirement and stock option benefits that he’s accumulating.

I permit myself to believe that, between 8:00 am and 9:00 am next Tuesday, Mr. Ellison isn’t very likely to do anything that’s going to earn a lot more than $25,000 to Oracle.

Heck, the stockholders are paying him roughly $1,256 to use the executive washroom.

Here’s my challenge to Mr. Ellison and Oracle’s board of directors:

Would the highest-paid CEO in America do the same job for a little bit less money?

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