Santa Clara (CA) – Sun’s first row of executives will receive a decent financial thank you from Oracle once the acquisition of the company is completed. The firm’s top-10 executives will receive almost $50 million in severance pay, insurance premiums and equity acceleration. In many cases, the payout won’t be enough to pay off the mortgage for a Silicon Valley home, but it should buy a nice get-together, a small boat or a few months of vacation.
Oracle will pay about $7.4 billion for Sun and as you may expect, that acquisition will also put smiles on some faces within Sun’s management. While shareholders will get $9.50 per share, ten executives will get an additional severance pay, insurance premiums and equity acceleration pay. CEO Jonathan Schwartz will get about $7.4 million for his 0.1% stock holdings in Sun, plus a $12 million cash payout. Chairman Scott McNealy will get about $140.6 million for his 1.9% share in Sun and a $9.5 million cash payout.
Other management team members who will get a windfall include general counsel Michael Dillion, who will get $2.7 million, systems EVP John Fowler ($3.3 million), software EVP Anil Gadre ($2.7 million), CFO Michael Lehman ($4.0 million), HR EVP William MacGowan ($2.9 million), CTO Gregory Papadopoulos ($3.7 million), sales EVP Peter Ryan ($4.3 million) and microelectronics EVP Michael Splain ($2.9 million). In total, nearly $50 million will be paid out in severance, insurance premiums and equity acceleration pay. And yes, we are jealous. Just a bit.
Party time at Sun as $50 million golden parachute is prepped
