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Oracle CEO forgoes $575 million payment to settle with shareholders

Most of Larry Ellison’s payment from Pillar Data Systems will now go directly to shareholders

 As Thomas Patterson examined on Oct. 3 in an InsideCounsel opinion piece, disputes between shareholders can be extremely tough to handle, especially when litigation is involved. Larry Ellison, CEO of Oracle Corp., just learned this lesson the hard way: He will forgo a potential $575 million payment tied to the acquisition of a software maker in order to settle investors claims over the deal.

In 2011, Oracle purchased Pillar Data Systems Inc., a closely held provider of data storage systems, with Ellison controlling 55 percent of the company. The deal required no up-front compensation and allowed for an earn-out payment over the next three years, according to Bloomberg.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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