Sun's McNealy, Schwartz Won't Be Joining New Oracle

 
 
By Chris Preimesberger  |  Posted 2010-01-26 Email Print this article Print
 
 
 
 
 
 
 

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 administration.

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.




 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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