Larry Ellison, the highest paid CEO in America announced of his plans to step down as the Chief Executive Officer (CEO) of Oracle, the multinational giant he founded in 1977. Larry announced his plans to step down as the CEO on Thursday evening.
Oracle’s share which has gained 17% in the last 52 weeks declined by 5.1% on Thursday following the news.
Larry Ellison is the world’s most paid CEO making $78.4 million dollars in 2013. He is the 5th richest man in the planet going by the numbers at Forbes. Technically, Larry earns $1 per month. However, he gets stock options which makes him the world’s most paid CEO.
Ellison who turned 70 years has led the organization which has become the world’s largest database provider and the world’s largest business applications developer.
Today, the company has a market capitalization value of $180 billion. In 2013, the company had an annual revenue of $38 billion.
The applications that the company manufactures have become must haves for any company in America today.
Larry Ellison is also an avid money spender. He owns mega homes, yachts and planes that he is always ready to show and flaunt. His biggest home is a Japanese inspired home in Malibu which has appeared in many television shows.
Ellison has left the company in the able hands of 2 co-CEOs who have been with him for many years. These are: Mark Hurdwho left computer giant Hewlett Packard and Safra Catz. The two are currently the co-presidents of the company.
Many analysts note that Ellison has for years groomed the new team to replace him after his exit. He has always stated that his successor would come from within the organization.
He successfully led Oracle through an IPO in 1986 a day before Microsoft went public.
However, Ellison will remain active in the company as the new executive chairman. He said that he will continue working for the organization on a daily basis with his role being guidance.
Oracle is currently facing competition from new companies such as Salesforce which charge customers less amount of money for database and CRM services.
Oracle has worked hard to remain the best database company in the world. In this, the company has acquired many of its closest rivals for huge amount of money.
Catz is the 25th CEO of a major company in the S&P 500 coming months after Mary Barra who heads General Motors Corporation. Analysts are bearish on the future of Oracle under the new leadership structure.