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ELLISON STEPS DOWN AS ORACLE CHAIRMAN

As part of an executive realignment, Larry Ellison, who co-founded the company in 1977, stepped down as chairman of the Oracle Corp on Monday, but will remain chief executive.

Jeffrey Henley, Oracle's chief financial officer, will replace Ellison. The move was described as an attempt to better utilize the company's talent.

Two top-ranking executives, Safra Catz and Charles Phillips, also were promoted to share the position of president, reporting to Ellison.

Henley, who already is a member of Oracle's board and has worked for the company for 13 years, will remain a full-time Oracle employee as part of the shift, and will spend more of his time on board matters as well as customer-related issues.

Catz's new role largely formalizes the duties she already has been performing -- running the company's global operations. Phillips has focused on sales operations and will retain that focus in his new position.

The question of succession at Oracle has been persistent since 2000, when two top-ranking executives, Ray Lane, the president, and Gary Bloom, the executive vice president, quit within five months of each other.

Lane, in particular, was being looked as a successor; since his departure, Henley has been placed in that role. The company said it had begun a search for his successor.

Since the resignations, Ellison has been the principal architect of the company's business strategy.

He has argued publicly that Silicon Valley technology is increasingly a mature and consolidating business. In June, Ellison tried a takeover of PeopleSoft, one of Oracle's close competitors. The effort has turned into a protracted and bitter battle.

Catz joined Oracle in April 1999, and she has been a board member since 2001. Phillips joined the company last May, and he was named to the board on Monday.

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