Oracle will pay former HP CEO Mark Hurd a $950,000 salary, with the possibility of up to a $10 million bonus. HP is suing Hurd to stop him from becoming an Oracle co-president.
Mark Hurd, who resigned as CEO of
Hewlett-Packard a month ago with a severance package of almost $40 million,
reportedly will be paid $950,000 a year as Oracle's new co-president, and could
stand to make as much as $10 million in bonuses.
According to filings with the Securities and Exchange
Commission, Hurd also will be offered a stock option to buy 10 million shares
of Oracle now, and will be eligible to buy 5 million more annually for the next
five years, as long as he stays employed by Oracle.
Hurd also will be up for nomination to the company's board of
as co-president Sept. 6, a month after he left HP under pressure
following an internal investigation into a sexual harassment complaint filed by
a former HP contractor, Jodie Fisher, and accusations that he falsified expense
reports to cover his personal relationship with Fisher.
Hurd had spent five years at the helm of HP, and was widely
credited with driving costs down and profits up, as well as completing the
integration of Compaq and expanding HP's reach through such acquisitions as
services vendor EDS.
After Hurd's resignation, Oracle founder and CEO
Larry Ellison became one of his most vocal supporters,
sharply criticizing the HP board
for "the worst personnel decision
since the idiots on the Apple board fired Steve Jobs many years ago."
Upon hiring Hurd, Ellison said that "Mark did a brilliant
job at HP, and I expect he'll do even better at Oracle. There is no executive
in the IT world with more relevant experience than Mark."
HP on Sept. 8
filed a lawsuit against Hurd
in a California
state court, saying that his hiring by Oracle violates confidentiality
provisions in his severance agreement. The
can be found here.
"Mark Hurd agreed to and signed agreements designed to
protect HP's trade secrets and confidential information," HP said in a
statement. "HP intends to enforce those agreements."
later in the day, saying that the lawsuit threatened to damage
the working relationship between the two companies.
"Oracle has long viewed HP as an important partner,"
Ellison said in a statement. "By filing this vindictive lawsuit against
Oracle and Mark Hurd, the HP board is acting with utter disregard for that
partnership, our joint customers, and their own shareholders and employees. The
HP Board is making it virtually impossible for Oracle and HP to continue to
cooperate and work together in the IT marketplace."
Oracle and HP have been longtime partners. However, Oracle is
looking to expand beyond its traditional software business to become more of a
complete IT solutions provider. Earlier this year, Oracle bought Sun
Microsystems for $7.4 billion, a move that not only brought such Sun
technologies as Solaris and Java into the fold, but also its extensive hardware
Oracle officials are looking to tightly
integrate their software with Sun hardware
to create appliances, though
they also will sell systems that will run other vendors' software.