Software giant Oracle Corp said in a regulatory filing on Friday that it would cut the salary of its chief executive to $1 in fiscal 2010 from $1 million in the previous year.
Chief Executive Larry Ellison agreed to the pay cut, according to the filing.
The compensation committee recognizes that Mr. Ellison has a significant equity interest in Oracle, but believes he should still receive annual compensation because Mr. Ellison plays an active and vital role in our operations, strategy and growth. Nevertheless, during fiscal 2010, Mr. Ellison agreed to decrease his annual salary to $1, the company said in a filing.
A spokeswoman for the company declined additional comment.
Oracle's executive compensation packages include a base salary, an annual cash bonus and stock options.
In fiscal 2009, 97 percent of Ellison's overall compensation was in the form of a bonus and stock options. Only 1.2 percent was his base salary and 1.8 percent was other benefits, according to the company.
Shares in the Redwood City, California-based firm closed up 0.77 percent at $22.11 on the Nasdaq.
(Reporting by Clare Baldwin; Editing Bernard Orr)