Hurd could get $10M bonus from Oracle

chart_oracle_hurd.top.gifClick chart for more of today's market action. By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Oracle Corp. said Wednesday it will pay its new co-president, Mark Hurd, an annual salary of $950,000 and that he could receive a bonus of up to $10 million.

The offer letter, filed with the Securities and Exchange Commission, comes after software developer Oracle announced late Monday it would hire Hurd, and about a month after his controversial departure from Hewlett-Packard, where he was CEO.

In the letter, Oracle (ORCL, Fortune 500) said Hurd will be eligible for election to the board of directors early next month. Hurd will be responsible for Oracle's global sales, consulting, marketing and support organizations. He will report to Oracle CEO Larry Ellison, who publicly slammed HP when the company let go of Hurd.

Hurd will also be granted an initial stock option to purchase 10 million shares, at an exercise price equal to the stock price on the date of the grant. Based on Tuesday's closing price for Oracle, 10 million shares would be priced at $246.2 million. Hurd will also receive options to purchase 5 million shares each year over the next five years.

Oracle's compensation for its top executives is typically lavish. Safra Catz, who will remain co-president alongside Hurd, took home an estimated $36.4 million last year in salary, bonus and options -- down from the $42.3 million she collected a year earlier. Charles Phillips, who resigned as an Oracle co-president on Monday to make room for Hurd, made $30 million last year.

But Hurd's hiring process isn't over. Late Tuesday, HP (HPQ, Fortune 500), which competes with Oracle in markets including computer servers and software, filed a lawsuit against Hurd to block him from joining Oracle.

HP said in court documents that Hurd has put its "most valuable trade secrets and confidential information in peril."

Hurd resigned suddenly from HP early last month. HP claims that he failed to tell the board about a "personal relationship" with actress Jodie Fisher, who was working as a marketing contractor for the company.

When Hurd left HP, he received $12 million in cash and kept a large part of his stock and options.

CNNMoney's Julianne Pepitone contributed to this report. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,920.37 -122.53 -0.72%
Nasdaq 4,454.69 -38.70 -0.86%
S&P 500 1,959.06 -13.23 -0.67%
Treasuries 2.44 -0.06 -2.51%
Data as of 10:01am ET
Company Price Change % Change
Bank of America Corp... 17.02 -0.03 -0.18%
Ford Motor Co 14.68 -0.10 -0.71%
General Electric Co 25.22 -0.40 -1.56%
Apple Inc 100.12 -0.63 -0.63%
Pfizer Inc 29.20 -0.37 -1.25%
Data as of 9:46am ET

Sections

In the last five years, pumpkin sales have risen 34% as people demand pumpkin in everything from beer to beef jerky. More

In the last five years, pumpkin sales have risen 34% as people demand pumpkin in everything from beer to beef jerky. More

For these seniors, the best retirement is not to retire. From a 102-year-old Wal-Mart worker to an activist park ranger, these workers have stayed on the job well into their golden years. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.