A group of major investors has sounded the alarm bells on Oracle. Their message: the tech giant must make serious changes to its board and pay practices, or things will get very ugly very fast.
In a letter to Oracle [fortune-stock symbol=”ORCL”] shareholders, these investors argued that there was “insufficient board accountability” and “poorly designed compensation programs,” both of which “create significant risks for shareholders.”
Oracle’s board could hardly be described as independent. Including former CEO and current CTO Larry Ellison, there are three executives on the 11-person board. The former chairman, Jeffrey Henley, who is now vice chairman after the company’s recent management changes, is a former executive at the firm. In addition, six directors have been on the board for more than 10 years, a tenure that makes independence very unlikely.
So, what do these investors intend to do about the quality of…
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