Ellison Locks Away Right to Vote on NetSuite Directors
As the majority shareholder, Ellison maintains his ability to vote on changes in NetSuite's ownership.Oracle CEO Larry Ellison has put his considerable shares of on-demand software rival NetSuite in a "lock box" to limit his influence on the board, though not on NetSuites potential future owners. According to an Oct. 30 filing with the Securities and Exchange Commission, Ellison plans to set aside the voting power of his 639.3 million shares, or 60 percent of NetSuite. The shares will be put into a self-described lock box, established by NetSuite, which will squelch some of Ellisons direct influence on the San Mateo, Calif., company.
With his sharestheoreticallylocked away, Ellison will not have the right to vote for board directors as long as he remains director of Oracle. That could be quite some timeEllison reportedly has no succession plans in place despite a shallow bench of top executives to fill his shoes. However, he will still be able to vote on changes in the companys ownership, a provision that leads to questions of NetSuites future independence, despite its July IPO filing.