Oracle executives receive $1 billion in stock options that are now underwater
Oracle disclosed that stock options granted to Larry Ellison and co-CEOs Clay Magouyrk and Mike Sicilia are currently without intrinsic value.
Oracle’s latest proxy statement reveals that stock options granted to co-founder Larry Ellison and newly appointed co-CEOs Clay Magouyrk and Mike Sicilia, together valued at $988 million at grant, have no intrinsic value because their exercise prices are higher than one outlet market price. Ellison’s package, granted in October, carries a $280 strike; Magouyrk and Sicilia’s awards, issued after their September 2025 promotions, have a $308 strike, requiring the stock to more than double for any payoff.
New CFO Hilary Maxson entered the “Equity Choice Program,” opting for a blend of RSUs and options, but her option component, priced at $185, is also out of the money. Oracle’s cloud revenue rose 39% to $34 billion and the company paid $4.9 million cash bonuses to each of the three executives, while also reporting negative free cash flow and a large debt issuance. Shareholders will vote on the compensation plan on November 18.
