ORACLE CORP, DEF 14A filed on 9/25/2024
Proxy Statement (definitive)
v3.24.3
Cover
 12 Months Ended
May 31, 2024
Document Information [Line Items]  
Document Type DEF 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name Oracle Corporation
Entity Central Index Key 0001341439
v3.24.3
Pay vs Performance Disclosure - USD ($)
 12 Months Ended
May 31, 2024
May 31, 2023
May 31, 2022
May 31, 2021
Pay vs Performance Disclosure        
Pay vs Performance Disclosure, Table
PAY VERSUS PERFORMANCE
 
The following tables and related disclosures have been prepared in accordance with the SEC’s pay versus performance rules in Item 402(v) of Regulation
S-K
under the Exchange Act and do not necessarily reflect the economic benefit actually realized by our NEOs or the method by which the Compensation Committee makes compensation determinations. For a discussion of our executive compensation program and the Compensation Committee’s decision-making process in determining and approving our NEOs’ compensation, see “Executive Compensation—Compensation Discussion and Analysis” beginning
o
n page 36.
Pay Versus Performance Table
 
Year
  
SCT Total for
PEO
($) (1)
  
Compensation
Actually Paid
(CAP) to PEO
($) (2)
  
Average SCT
Total for Non-

PEO NEOs
($) (1)
  
Average CAP
to
Non-PEO

NEOs
($) (3)
  
Value of Initial Fixed $100
Investment Based On:
  
Net
Income
($)
(millions)
  
Non-GAAP

Operating
Income
Growth
($) (6)
(millions)
 
Total
Shareholder
Return (TSR)
($) (4)
  
Peer Group
TSR
($) (5)
2024
    
 
6,464,234
    
 
94,264,234
    
 
13,191,706
    
 
38,148,634
    
 
132.03
    
 
136.76
    
 
10,467
    
 
2,153
2023
    
 
5,250,680
    
 
304,050,680
    
 
12,487,762
    
 
96,299,855
    
 
106.80
    
 
68.89
    
 
8,503
    
 
1,309
2022
    
 
138,192,032
    
 
139,242,032
    
 
58,544,998
    
 
56,911,587
    
 
37.95
    
 
42.02
    
 
6,717
    
 
593
2021
    
 
10,631,223
    
 
40,389,348
    
 
12,161,232
    
 
31,342,646
    
 
48.84
    
 
48.00
    
 
13,746
    
 
1,618
 
(1)
For fiscal years 2024, 2023, 2022 and 2021, Safra A. Catz served as our principal executive officer (PEO). Our
non-PEO
NEOs for fiscal years 2022 and 2021 were Lawrence J. Ellison, Edward Screven and Dorian E. Daley. Our
non-PEO
NEOs for fiscal years 2024 and 2023 were Jeffrey O. Henley, Stuart Levey and Edward Screven. In addition, although Mr. Ellison was not an NEO for fiscal year 2024 or 2023 under applicable SEC rules, we have voluntarily included him as a
non-PEO
NEO for each of such years.
 
(2)
The amounts reported in this column represent the amount of “compensation actually paid” (CAP) to Ms. Catz computed in accordance with Item 402(v) of Regulation
S-K
and do not reflect the actual amount of compensation earned by or paid to Ms. Catz during the applicable year. In accordance with the requirements of Item 402(v) of Regulation
S-K,
the following adjustments were made to Ms. Catz’s total compensation for each year to determine the CAP:
 
Year
   
SCT Total for PEO
($)
   
Deduction of
Equity Amounts
Reported in SCT
($)
  
Fair Value for
Unvested
Awards Granted
in the Covered
Year
($)
   
Fair Value for
Vested Awards
Granted in the
Covered Year
($)
   
Change in Fair
Value of
Outstanding
Unvested Awards
from Prior Years
($)
  
Change in Fair
Value of
Awards from
Prior Years
that Vested in
the Covered
Year
($)
   
CAP to PEO
($)
2024
     
 
6,464,234
     
 
—
    
 
—
     
 
—
     
 
54,300,000
 (a) 
    
 
33,500,000
     
 
94,264,234
2023
     
 
5,250,680
     
 
—
    
 
—
     
 
—
     
 
298,800,000
 (b) 
    
 
—
     
 
304,050,680
2022
     
 
138,192,032
     
 
(129,275,000)
    
 
—
     
 
—
     
 
123,300,000
    
 
7,025,000
     
 
139,242,032
2021
     
 
10,631,223
     
 
—
    
 
—
     
 
—
     
 
29,325,000
    
 
433,125
     
 
40,389,348
 
  (a)
This amount includes the change in the fair value of 2,500,000 PSOs (representing the third tranche of PSOs) which were earned in fiscal 2024 and vested in fiscal 2025 on June 27, 2024.
 
  (b)
This amount includes the change in the fair value of 2,500,000 PSOs (representing the second tranche of PSOs) which were earned in fiscal 2023 and vested in fiscal 2024 on June 30, 2023.
 
(3)
The amounts reported in this column represent the average amount of CAP to the
non-PEO
NEOs as a group, as computed in accordance with Item 402(v) of Regulation
S-K.
The dollar amounts do not reflect the actual average amount of compensation earned by or paid to the
non-PEO
NEOs as a group during the applicable year. In accordance with the requirements of Item 402(v) of Regulation
S-K,
the following adjustments were made to the average total compensation for the
non-PEO
NEOs for each year to determine the CAP:
 
Year
   
Average SCT Total
for
non-PEO
NEOs
($)
   
Deduction of
Average Equity
Amounts
Reported in
SCT
($)
  
Average Fair
Value for
Unvested
Awards Granted
in the Covered
Year
($)
   
Average Fair
Value for
Vested Awards
Granted in the
Covered Year
($)
   
Change in
Average Fair
Value of
Outstanding
Unvested
Awards from
Prior Years
($)
  
Change in Average
Fair Value of
Awards from Prior
Years that Vested
in the Covered
Year
($)
   
Average CAP
to
non-PEO

NEOs
($)
2024
     
 
13,191,706
     
 
(9,438,478
)
    
 
9,932,357
     
 
—
     
 
15,424,691
 (a)
    
 
9,038,358
     
 
38,148,634
2023
     
 
12,487,762
     
 
(9,341,022
)
    
 
14,522,834
     
 
—
     
 
78,125,625
 (b)
    
 
504,656
     
 
96,299,855
2022
     
 
58,544,998
     
 
(53,190,333
)
    
 
8,279,833
     
 
—
     
 
39,812,596
    
 
3,464,493
     
 
56,911,587
2021
     
 
12,161,232
     
 
(6,701,250
)
    
 
9,715,000
     
 
—
     
 
15,523,575
    
 
644,089
     
 
31,342,646
 
  (a)
This calculation includes the change in the fair value of 2,500,000 PSOs (representing the third tranche of PSOs) held by Mr. Ellison which were earned in fiscal 2024 and vested in fiscal 2025 on June 27, 2024.
 
  (b)
This calculation includes the change in the fair value of 2,500,000 PSOs (representing the second tranche of PSOs) held by Mr. Ellison which were earned in fiscal 2023 and vested in fiscal 2024 on June 30, 2023.
 
(4)
The amounts reported in this column reflect the cumulative total stockholder return on our common stock for each of the last four fiscal years ended May 31, 2024, assuming an investment of $100 on May 31, 2020, and the reinvestment of any dividends.
 
(5)
The peer group used in this disclosure, the Dow Jones U.S. Technology Total Return Index, is the same peer group used in the Stock Performance Graph in Part II, Item 5 of our Annual Report on Form
10-K
for the fiscal year ended May 31, 2024. The amounts reported in this column reflect the cumulative total return of the Dow Jones U.S. Technology Total Return Index for each of the last four fiscal years ended May 31, 2024, assuming an investment of $100 on May 31, 2020.
 
(6)
Non-GAAP
operating income is a
non-GAAP
financial measure that reflects adjustments based on stock-based compensation expenses, amortization of intangible assets, acquisition related and other expenses and restructuring expenses. As noted in the CD&A, year-over-year growth in our
non-GAAP
operating income is the financial performance metric that is used to determine performance-based cash bonuses under the Executive Bonus Plan, and which funds our discretionary bonus plan. For more information see “Executive Compensation—Compensation Discussion and Analysis—Elements of Our Executive Compensation Program—Annual Cash Bonuses” beginning on page 46.
     
Company Selected Measure Name Non-GAAP Operating Income Growth      
Named Executive Officers, Footnote Our
non-PEO
NEOs for fiscal years 2022 and 2021 were Lawrence J. Ellison, Edward Screven and Dorian E. Daley. Our
non-PEO
NEOs for fiscal years 2024 and 2023 were Jeffrey O. Henley, Stuart Levey and Edward Screven. In addition, although Mr. Ellison was not an NEO for fiscal year 2024 or 2023 under applicable SEC rules, we have voluntarily included him as a
non-PEO
NEO for each of such years. 		     
Peer Group Issuers, Footnote The peer group used in this disclosure, the Dow Jones U.S. Technology Total Return Index, is the same peer group used in the Stock Performance Graph in Part II, Item 5 of our Annual Report on Form
10-K
for the fiscal year ended May 31, 2024. The amounts reported in this column reflect the cumulative total return of the Dow Jones U.S. Technology Total Return Index for each of the last four fiscal years ended May 31, 2024, assuming an investment of $100 on May 31, 2020. 		     
PEO Total Compensation Amount $ 6,464,234 $ 5,250,680 $ 138,192,032 $ 10,631,223
PEO Actually Paid Compensation Amount $ 94,264,234 304,050,680 139,242,032 40,389,348
Adjustment To PEO Compensation, Footnote
Year
   
SCT Total for PEO
($)
   
Deduction of
Equity Amounts
Reported in SCT
($)
  
Fair Value for
Unvested
Awards Granted
in the Covered
Year
($)
   
Fair Value for
Vested Awards
Granted in the
Covered Year
($)
   
Change in Fair
Value of
Outstanding
Unvested Awards
from Prior Years
($)
  
Change in Fair
Value of
Awards from
Prior Years
that Vested in
the Covered
Year
($)
   
CAP to PEO
($)
2024
     
 
6,464,234
     
 
—
    
 
—
     
 
—
     
 
54,300,000
 (a) 
    
 
33,500,000
     
 
94,264,234
2023
     
 
5,250,680
     
 
—
    
 
—
     
 
—
     
 
298,800,000
 (b) 
    
 
—
     
 
304,050,680
2022
     
 
138,192,032
     
 
(129,275,000)
    
 
—
     
 
—
     
 
123,300,000
    
 
7,025,000
     
 
139,242,032
2021
     
 
10,631,223
     
 
—
    
 
—
     
 
—
     
 
29,325,000
    
 
433,125
     
 
40,389,348
 
  (a)
This amount includes the change in the fair value of 2,500,000 PSOs (representing the third tranche of PSOs) which were earned in fiscal 2024 and vested in fiscal 2025 on June 27, 2024.
 
  (b)
This amount includes the change in the fair value of 2,500,000 PSOs (representing the second tranche of PSOs) which were earned in fiscal 2023 and vested in fiscal 2024 on June 30, 2023.
     
Non-PEO NEO Average Total Compensation Amount $ 13,191,706 12,487,762 58,544,998 12,161,232
Non-PEO NEO Average Compensation Actually Paid Amount $ 38,148,634 96,299,855 56,911,587 31,342,646
Adjustment to Non-PEO NEO Compensation Footnote
Year
   
Average SCT Total
for
non-PEO
NEOs
($)
   
Deduction of
Average Equity
Amounts
Reported in
SCT
($)
  
Average Fair
Value for
Unvested
Awards Granted
in the Covered
Year
($)
   
Average Fair
Value for
Vested Awards
Granted in the
Covered Year
($)
   
Change in
Average Fair
Value of
Outstanding
Unvested
Awards from
Prior Years
($)
  
Change in Average
Fair Value of
Awards from Prior
Years that Vested
in the Covered
Year
($)
   
Average CAP
to
non-PEO

NEOs
($)
2024
     
 
13,191,706
     
 
(9,438,478
)
    
 
9,932,357
     
 
—
     
 
15,424,691
 (a)
    
 
9,038,358
     
 
38,148,634
2023
     
 
12,487,762
     
 
(9,341,022
)
    
 
14,522,834
     
 
—
     
 
78,125,625
 (b)
    
 
504,656
     
 
96,299,855
2022
     
 
58,544,998
     
 
(53,190,333
)
    
 
8,279,833
     
 
—
     
 
39,812,596
    
 
3,464,493
     
 
56,911,587
2021
     
 
12,161,232
     
 
(6,701,250
)
    
 
9,715,000
     
 
—
     
 
15,523,575
    
 
644,089
     
 
31,342,646
 
  (a)
This calculation includes the change in the fair value of 2,500,000 PSOs (representing the third tranche of PSOs) held by Mr. Ellison which were earned in fiscal 2024 and vested in fiscal 2025 on June 27, 2024.
 
  (b)
This calculation includes the change in the fair value of 2,500,000 PSOs (representing the second tranche of PSOs) held by Mr. Ellison which were earned in fiscal 2023 and vested in fiscal 2024 on June 30, 2023.
     
Compensation Actually Paid vs. Total Shareholder Return
Ø
Compensation Actually Paid and Total Stockholder Return
The following graph illustrates the relationship between CAP to our PEO and the average amount of CAP to our
non-PEO
NEOs, our cumulative total stockholder return and our cumu
la
tive peer group total stockholder return for fiscal years 2021, 2022, 2023 and 2024, each as set forth in the pay versus performance table above.
 
LOGO
     
Compensation Actually Paid vs. Net Income
Ø
Compensation Actually Paid and Net Income
The following graph illustrates the relationship between CAP to our PEO and the average amount of CAP to our
non-PEO
NEOs and our net income for fiscal years 2021, 2022, 2023 and 2024, each as set forth in the pay versus performance table above.
 
LOGO
     
Compensation Actually Paid vs. Company Selected Measure
Ø
Compensation Actually Paid and
Non-GAAP
Operating Income Growth
The following graph illustrates the relationship between CAP to our PEO and the average amount of CAP to our
non-PEO
NEOs and our
non-GAAP
operating income growth for fiscal years 2021, 2022, 2023 and 2024, each as set forth in the pay versus performance table above.
 
LOGO
     
Total Shareholder Return Vs Peer Group
Ø
Compensation Actually Paid and Total Stockholder Return
The following graph illustrates the relationship between CAP to our PEO and the average amount of CAP to our
non-PEO
NEOs, our cumulative total stockholder return and our cumu
la
tive peer group total stockholder return for fiscal years 2021, 2022, 2023 and 2024, each as set forth in the pay versus performance table above.
 
LOGO
     
Tabular List, Table
Financial Performance Measures
The table below lists the financial performance measures that the Compensation Committee beli
eve
s represent the most important financial performance measures used to link CAP to our NEOs to Oracle’s performance for fiscal 2024.
Non-GAAP
operating income growth is the financial performance metric that is used to determine performance-based cash bonuses under the Executive Bonus Plan and which funds Oracle’s discretionary corporate bonus plan. The other metrics noted below are the metrics associated with the operational performance goals of the PSOs which are held by our CEO and CTO. The Compensation Committee also believes that market capitalization goals, which are an element of the PSOs, are important to align the long-term compensation paid to our CEO and CTO with the interests of our stockholders. See “Executive Compensation—Compensation Discussion and Analysis” beginning on page 36 for a further description of our executive compensation program. The performance measures included in this table are not ranked by relative importance.
 
 
Non-GAAP
Operating Income Growth
Non-GAAP
Total Cloud Revenue
Non-GAAP
Total SaaS Revenue
Non-GAAP
Total PaaS and IaaS Revenue
Non-GAAP
SaaS Gross Margin
Non-GAAP
PaaS and IaaS Gross Margin
     
Total Shareholder Return Amount $ 132.03 106.8 37.95 48.84
Peer Group Total Shareholder Return Amount 136.76 68.89 42.02 48
Net Income (Loss) $ 10,467,000,000 $ 8,503,000,000 $ 6,717,000,000 $ 13,746,000,000
Company Selected Measure Amount 2,153,000,000 1,309,000,000 593,000,000 1,618,000,000
PEO Name Safra A. Catz      
Measure:: 1        
Pay vs Performance Disclosure        
Name Non-GAAP Operating Income Growth      
Non-GAAP Measure Description
Non-GAAP
operating income is a
non-GAAP
financial measure that reflects adjustments based on stock-based compensation expenses, amortization of intangible assets, acquisition related and other expenses and restructuring expenses. As noted in the CD&A, year-over-year growth in our
non-GAAP
operating income is the financial performance metric that is used to determine performance-based cash bonuses under the Executive Bonus Plan, and which funds our discretionary bonus plan. For more information see “Executive Compensation—Compensation Discussion and Analysis—Elements of Our Executive Compensation Program—Annual Cash Bonuses” beginning on page 46. 		     
Measure:: 2        
Pay vs Performance Disclosure        
Name Non-GAAP Total Cloud Revenue      
Measure:: 3        
Pay vs Performance Disclosure        
Name Non-GAAP Total SaaS Revenue      
Measure:: 4        
Pay vs Performance Disclosure        
Name Non-GAAP Total PaaS and IaaS Revenue      
Measure:: 5        
Pay vs Performance Disclosure        
Name Non-GAAP SaaS Gross Margin      
Measure:: 6        
Pay vs Performance Disclosure        
Name Non-GAAP PaaS and IaaS Gross Margin      
PEO | Deduction of Equity Amounts Reported in SCT [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount     $ (129,275,000)  
PEO | Change in Fair Value of Outstanding Unvested Awards from Prior Years [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 54,300,000 $ 298,800,000 123,300,000 $ 29,325,000
PEO | Change in Fair Value of Awards from Prior Years that Vested in the Covered Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 33,500,000   7,025,000 433,125
Non-PEO NEO | Deduction of Equity Amounts Reported in SCT [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (9,438,478) (9,341,022) (53,190,333) (6,701,250)
Non-PEO NEO | Average Fair Value for Unvested Awards Granted in the Covered Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 9,932,357 14,522,834 8,279,833 9,715,000
Non-PEO NEO | Change in Fair Value of Outstanding Unvested Awards from Prior Years [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 15,424,691 78,125,625 39,812,596 15,523,575
Non-PEO NEO | Change in Fair Value of Awards from Prior Years that Vested in the Covered Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ 9,038,358 $ 504,656 $ 3,464,493 $ 644,089