Why Larry Ellison has pledged Oracle shares worth $9.2B
What's the story
Larry Ellison, Oracle's executive chairman and chief technology officer, has pledged an additional 67 million shares of the tech giant as collateral for personal loans. The move was disclosed in a filing on Friday. The new share pledges represent a 19% increase from what Ellison had pledged at the same time last year.
Financial impact
Co-CEOs to receive stock option award package worth $870M
The newly pledged shares are worth some $9.2 billion, based on Oracle's closing price of $137.10 per share on Friday.
This move takes the total number of shares pledged by Ellison to around 36% of his total holdings in Oracle, which stands at 1.16 billion shares.
The filing also revealed that Oracle's co-CEOs will get a combined stock option award package worth $870 million.
Business dealings
Ellison's involvement in major acquisition
Ellison is also instrumental in his son David's company, Paramount Skydance's, acquisition of Warner Bros. Discovery.
The deal is worth around $111 billion, and the Ellisons have pledged $47 billion in equity funding for it.
Of this amount, some $24 billion is coming from three Middle Eastern sovereign wealth funds.
Company policy
Regulatory restrictions on share pledging
Notably, Oracle's officers and directors are not allowed to pledge company shares as collateral for personal loans.
However, there is one exception: Ellison himself, who serves as the company's executive chair and chief technology officer.
This exception highlights Ellison's unique position within the company and his influence over its operations.
Awards distribution
Details on co-CEO compensation packages
The regulatory filing also revealed that Oracle's co-CEOs, Clay Magouyrk and Mike Sicilia, will receive a combined stock option award package worth $870 million.
Magouyrk's package is valued at $621.7 million while Sicilia's is worth $248.7 million.
Notably, Ellison didn't receive any awards in the last two fiscal years but got a package worth $117.8 million this time around.