Institutional Shareholder Services (ISS), the US proxy adviser, has urged the Oracle shareholders to vote against nearly the tech firm's entire board of directors at the annual meeting, citing executive-pay practices.
As part of the nonbinding 'say on pay' referendum, advisors have also recommended dismissing changes the firm is proposing to its stock compensation scheme.
Shareholders are asked to withhold votes from the company's chairman Jeff Henley and seven independent board members, who include Bruce Chizen, George Conrades and Naomi Seligman of the compensation committee.
Bloomberg cited ISS report as saying: "ISS recommends that shareholders withhold votes from the Chairman and nonemployee members of the board for failing to provide effective oversight of management on behalf of shareholders, as evidenced by the board's non-responsiveness to shareholder concerns regarding executive compensation, persistent pay-for-performance misalignment, and tolerance of substantial pledging of shares by the CEO."
The latest proposals to modify Oracle's compensation policies come in the wake of annoyance among majority investors over years of lofty pay for chief executive Larry Ellison.
Ellison, who established the firm and owns 25% of shares in the firm, is alleged to receive millions of dollars of stock options annually, even when the company's performance has been assorted.
Last year, Oracle lost a mainstream of the vote on its say-on-pay referendum, while had not made the recommended pay changes.
However, the rival proxy advisor Glass, Lewis & Co also urged to withhold votes against five Oracle directors citing pay issues, while advised to vote against executive pay.
In addition, Egan-Jones Proxy Services also suggested votes 'for' all directors while 'against' the tech firm's executive pay.
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