Why did H. Raymond Bingham receive a cash payment instead of a stock option?

Mr. Bingham received a cash payment of $42,400 because he had served as Chair of the Nomination and Governance Committee for 10 months during fiscal year 2006. The company's Director's Stock Plan requires a director to have served on the committee for at least 12 months to receive a stock option grant on May 31, 2006. Since he did not meet this 12-month threshold, the Compensation Committee approved a cash payment as compensation for his service.

What is the significance of the Nomination and Governance Committee?

The Nomination and Governance Committee typically oversees matters related to board nominations, corporate governance practices, and director compensation. Its chair plays a key role in these important corporate oversight functions.

Does this payment indicate any change in Oracle's director compensation policy?

No, this filing does not suggest a change in policy. Instead, it illustrates the application of the existing Oracle Corporation Amended and Restated 1993 Directors’ Stock Plan. The cash payment was made as a direct result of the specific conditions and requirements outlined within that plan, specifically regarding the tenure needed for stock option grants.

When was this compensation decision made?

The Compensation Committee of Oracle's Board of Directors approved the cash payment to Mr. Bingham on August 15, 2006. The 8-K filing itself was made on August 21, 2006.

ORCL/ORCL-PD 8-K: Material Agreements

Summary

This Oracle Corporation (ORCL) 8-K filing from August 2006 reports on a specific compensation matter for one of its directors. The Compensation Committee approved a cash payment of $42,400 to H. Raymond Bingham, a director, for his service as Chair of the Nomination and Governance Committee during fiscal year 2006. This payment was made because Mr. Bingham did not meet the 12-month service requirement to receive a stock option grant typically awarded to the Chair of this committee.

Key Highlights

1Director H. Raymond Bingham received a cash payment of $42,400.
2The payment was for services rendered as Chair of the Nomination and Governance Committee in fiscal year 2006.
3Mr. Bingham did not receive his usual stock option grant due to not meeting the 12-month tenure requirement on the committee by the grant date (May 31, 2006).
4The cash payment is a substitute for the standard stock option award for his committee leadership role.
5The Compensation Committee approved this cash payment on August 15, 2006.
6The filing indicates Oracle's adherence to its director compensation plans, with adjustments made for specific service periods.

ORACLE CORP 8-K Report, Material Agreement (Aug 21, 2006)

Summary

Key Highlights

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