Oracle Names CFO as Chairman
Oracle Corp. on Monday elevated its chief financial officer to the position of chairman of the board, assuming that job from Chief Executive Larry Ellison and muting criticism that the database software company is too dependent on one man.
Jeff Henley, whose departure had been rumored for years, will yield the top finance spot once a replacement is found, Oracle said in a statement.
The Redwood City, Calif., company also promoted two top lieutenants to share the long- vacant job of president, though it said no new succession plan was in place.
Ellison co-founded Oracle in 1977 and has long dominated its activities. He has dismissed a series of operational leaders below him, prompting some investors to complain about the lack of a clear successor.
Splitting the jobs of CEO and chairman is a frequent request by shareholder advocates and corporate governance experts. Oracle spokeswoman Jennifer Glass said the company would not comment on what prompted Monday’s executive reshuffling.
“The obvious issue that would be looming is Larry’s role as CEO, chairman and 25% shareholder. The idea is to take that off the table,” said RBC Capital Markets analyst Cameron Steele, who owns some Oracle shares from his days as an employee. “It’s a little surprising given that Larry’s such a powerful force at the company, but it’s the right thing to do.”
Ellison, who like Henley is 59, has been chairman since 1995. He also held that title from 1990 to 1992.
The title of president went to Safra Catz, 42, who has served as a sort of chief of staff for Ellison as executive vice president, and to Chuck Phillips, 44, who joined the company from an analyst job on Wall Street in May. Both will continue to report to Ellison. Neither is seen as a clear candidate to replace him as CEO if he retires.
The added responsibilities are much greater for Phillips, who has been running Oracle’s marketing and now takes over sales and consulting as well. Phillips also was named a director. Catz has served on Oracle’s board since 2001.
Oracle shares set a 52-week trading high of $15.51 on Nasdaq on Monday before closing up 49 cents at $14.66. The stock slipped 1 cent in after-hours trading after the announcements.
