Oracle Corp. shareholders rejected the pay packages of CEO Larry Ellison and other executives, hewing to the calls by institutional investors and a proxy adviser that said their compensation is out of sync with the company's performance.
At Oracle's annual meeting Thursday in Redwood City, Calif., the company said shareholders also voted to re-elect all of its directors, contrary to the guidance of Institutional Shareholder Services. ISS had said votes should be withheld from Chairman Jeff Henley and seven independent board members, including Bruce Chizen, George Conrades and Naomi Seligman of the compensation committee.
On Monday, the $171.9 billion California State Teachers' Retirement System, West Sacramento; Railpen, which oversees assets for the £18 billion ($28.9 billion) Railway Pension Trustee Co., London; and PGGM, which manages €140 billion ($192 billion) for its parent, Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, sent a letter to Oracle shareholders, saying they have “severe concerns about executive compensation and proper board accountability at Oracle.”
The $278.3 billion California Public Employees' Retirement System, Sacramento, also said it was voting against Oracle's pay plan and Mr. Chizen, chairman of the board's compensation committee. It's the second straight year shareholders have rejected executive pay packages; the vote is non-binding.
“We're constantly evaluating information, and we will continue to do so,” Michael Boskin, an Oracle director, said at the meeting. “But we think we have a good process that is good corporate governance.”
Deborah Hellinger, a spokeswoman at Oracle, declined to comment on investors' statements about the company's proxy election.