Sun's McNealy, Schwartz Won't Be Joining New Oracle
Chairman and co-founder Scott McNealy tells his employees in a long, rambling e-mail that he is proud of the work his company has done and the contributions it has made to IT in general, and that he has few regrets about doing it his way.
Sun Microsystems co-founder and Chairman Scott McNealy, 55, the main face
and voice of Sun throughout its 28-year history, told employees Jan. 26 he is
stepping down and exiting the company he helped start up during the Reagan
McNealy told his employees and former employees in a long, rambling e-mailed memo obtained by eWEEK that he is proud of the work his company has done and the contributions it has made to IT in general, and that he has few regrets about doing it "my way."
Several other Sun executives, including CEO Jonathan Schwartz and Chief Financial Officer Michael Lehman, will not be offered positions in the combined Oracle-Sun company, people with knowledge of the situation told eWEEK.
Word of the changes leaked out a day before Oracle was set to introduce its "Oracle+Sun" strategy. The moves were not a surprise to anyone closely following the Oracle-Sun story; only the timing of the announcement was not known.
Oracle doesn't make a practice of keeping CEOs of large companies it has acquired. For example, the chief executives of Siebel Systems, PeopleSoft, and BEA Systems were not kept on board to work with Oracle CEO Larry Ellison following those transactions.
Back on June 8, in a regulatory filing with the Securities and Exchange Commission, Sun reported that Schwartz was to receive $12 million as part of his severance package, McNealy would get $9.53 million and Lehman $4.03 million. These were all described as base severance packages, meaning that they did not include other possible bonuses.
European Commission antitrust regulators Jan. 21 officially approved the sale, enabling Oracle to do business as a full-service IT vendor in the 27 countries that constitute the European Union. The U.S. Department of Justice approved the deal in August 2009.
With the assets of Sun now in-house, Oracle will be entering new IT sectors that include data storage, processors, server hardware and networking.