Will Oracle Continue to Shrug Off Shareholders?
On October 31, Oracle Corp. (NYSE: ORCL) will hold its annual shareholder meeting. The company is involved in several aspects of the software industry, including development and marketing. But according to a growing number of industry watchers, it is not involved enough in one area: performance. They claim the company does not preform strongly enough to merit the high pay its executives receive.
As the meeting date draws nearer, more groups and organizations are making their opinions known. In September, CtW Investment Group sent a letter to Oracle’s investors, asking them to vote down executive pay packages and vote against the re-election of board members. CtW, like others, was piqued by the pay Oracle founder and CEO Larry Ellison had received when the company was not producing strong results.
Institutional Shareholder Services, the U.S.’s largest proxy adviser, is echoing CtW’s call to investors. Bloomberg highlighted this from the ISS report, released Monday: the organization “recommends that shareholders withhold votes from the Chairman and nonemployee members of the board for failing to provide effective oversight of management on behalf of shareholders, as evidenced by the board’s non-responsiveness to shareholder concerns regarding executive compensation, persistent pay-for-performance misalignment, and tolerance of substantial pledging of shares by the CEO.”