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Breakingviews

Breakingviews: The Sun King of Silicon Valley

Wednesday, October 16, 2013 - 03:48

Oct. 16 - Oracle’s free-spending founder Larry Ellison has outlasted his tech peers despite numerous governance hiccups. But a reckoning seems due, according to Breakingviews.

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So this week I assess the influential proxy advisor said that shareholders vote against -- Of the eleven directors that oracle well funny enough we've been working on feature about oracle Larry Ellison. Our own -- here and you looked in it and quite some depth. On how this guy this titans of technology has managed to be kind of have no problem as well everybody else with a Cisco HP. All tech is really he's the last Alex sun king and so -- can -- he's managed to you on. -- huge truck at 25% oracle residence permits in her a lot. For thirty billion dollar and you heard this personal -- -- -- like last year for instance Hayward himself about. We'll keep the board -- -- ordered him -- eight of the eleven directors of city million options in the company. You know why -- and -- -- -- -- as you really need this incentive to come to work I'm probably not and the other thing is unique public. Doing things like he blows off they had big company meeting in him that for all the developers. A -- of course to -- -- -- manner while he is sponsoring America's. Yes they'll have been. They've let you know which which was another of his hyper expensive projects like his -- -- people. Notes unanimity. You know kind of needs that was it off of that and those of dividend tickets at oracle expanding to all the money and -- -- it. To to fund this the spending cavity but but yet. Articles as a spending attitude write articles -- quite a few of the companies and at least. You know that that would keep some change and innovation today as well as the bullet makes him pay attention to it which is and just you know I think it's only getting. I -- it's it's oracle and Alison how do you extricate one from the other already is it distinguish one that's becoming very difficult in the board hasn't done it in John if you look at like all the related party transactions there's just like a huge number of deals where. Unlike it does tennis have an idea and he runs and so therefore the companies and the main advertising there's. There's a company luster that oracle went on popular data systems. And ultimately Ellison was -- LLs on the -- and the majority shareholder and he was eligible for up to. Several hundred million. Payments it if that you'll succeeded. And assured -- that hold on wait this deal looks like a dog keynote. And also had actually backed down and said okay -- -- -- that that money to the company says and he said there have been some previous things well together and it there's an they're allegations of insider trading and what needed if he had to donate 100 million dollars to charity in the company's name. The company actually was going to pay his legal fees made it back to islanders shareholders lost it but. Shareholders have been well served by Mary Ellen I don't know Darko while all all these other old tech companies have been it got beaten out. Not oracle seems to be going from strength to strength its buying up rivals it is. And you have to take that into account -- there's still there is in irrespective of that there is no excuse for bad week covenants -- the -- public. Trading company especially one way I want sailed where you have minority shoves it in particular by the -- letting this is where ISS it's coming yeah and then the other thing is that. It's in these deals have worked in these guys that -- those companies. The problem they're Silicon Valley is that it -- it they're always threats and buying companies -- to -- company's very difficult to manage and there are a lot of current there's companies like. Worked data salesforce -- her kittens and Oracle's partner applications. And Oracle's bread and butter -- database market is an effort from its new rivals to -- and so the question is you know can keep it going and history suggests that -- he's got a great record but history also suggest that tech monopolies to -- keep in mind that and other stories when we're back with more breaking news tomorrow.

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Breakingviews: The Sun King of Silicon Valley

Wednesday, October 16, 2013 - 03:48