Oracle Grants $988 Million in Underwater Executive Stock Options

Oracle Corporation granted stock option packages totaling $988 million to co-founder Larry Ellison and co-CEOs Clay Magouyrk and Mike Sicilia during fiscal 2026. By the fiscal year end on May 31, all three packages were underwater, as the company stock price fell below the strike prices of $280 for Ellison and $308 for Magouyrk and Sicilia.

Oracle's board stated that the lack of intrinsic value indicates the performance-based plan is working as intended. While the company reported a 17% rise in overall revenue to $67.4 billion and a 39% increase in cloud revenue to $34 billion, it faced negative free cash flow of $23.7 billion due to significant capital expenditures for data centers.

Despite the underwater options, executives received $4.9 million in cash bonuses. In contrast, the company implemented staff layoffs and reported a decrease in median global employee compensation to $94,740. Larry Ellison also received a base salary increase to $950,000.