By Gabriel Perna: Subscribe to Gabriel's RSS feed
September 8, 2010 4:57 PM EDT
Oracle is severing whatever diplomatic relations it had with Hewlett-Packard.
HP filed a lawsuit to stop its former CEO, Mark Hurd, from taking a job as Oracle's co-president. In response Oracle's CEO, Larry Ellison, issued a scathing statement that accuses HP of vindictiveness.
"Oracle has long viewed HP as an important partner. 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," Ellison said in apress release.
Hurd left HP in the wake of a sexual harassment allegation. Although HP's internal investigation found no misconduct, it did find he violated company policy by filing false expense reports to hide a personal relationship with a contractor.
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Ellison had publicly defended Hurd, and this week the company announced it was offering him the job of co-president. HP immediately filed a suit, claiming that Hurd's acceptance of the position would violate a confidentiality agreement he signed with HP.
According to Oracle's SEC filing, Hurd will be paid $950,000 in annual salary. He will also be eligible for an executive bonus of $5 million in fiscal year 2011 for achieving certain performance targets. The bonus cap will be $10 million.
Oracle has also offered Hurd stock options. According to the offer letter, Hurd has a stock purchase option for 10 million shares at the company's first stockholder's meeting following his hire. He's also been approved an additional 5 million shares of common stock over the next five years, or 35 million total. Twenty five percent of the options will vest every year, beginning after the grant date.
Attempts to reach Oracle and HP for further clarification were unanswered.
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