Mark Hurd, CEO of Oracle.
Mark Neuling | CNBC
Oracle said Mark Hurd, one of the software company's two CEOs, was on vacation for health reasons, nine years after joining Hewlett-Packard. After the announcement, the stock fell in the extended trade.
Larry Ellison, Oracle's Founder and Chief Technology Officer, will work with Safra Catz, the other CEO, to fulfill Hurd's responsibilities. The company did not mention Hurd's health problem, nor did it state how long it would be gone, and a spokesman did not immediately respond to a request for comment.
"Although we all worked very hard to complete the first quarter, I said," Hurd, 62, said in a statement distributed to Oracle employees on Wednesday, according to a statement, "I have time to focus on my health." He said the board had approved his leave application.
Oracle released its quarterly financial results at the same time as Hurd's resignation was announced, and executives discussing the results with analysts at 5.30 pm Eastern Time. [1
"The HP board has just made the worst staffing decision since the idiots in the Apple board Steve Jobs Ellison wrote in a letter to the New York Times after HP announced Hurd's resignation. "This decision would almost have destroyed Apple if Steve had not come back and saved her."
Hurd was named CEO of Oracle next to Catz in 2014. In this role, he has been responsible for sales, marketing, consulting, support and business areas focused on industries.
"Oracle has a very capable CEO in Safra Catz and an exceptionally deep team of executives, many of whom have a long tenure at Oracle," Ellison said in the statement. He wished Hurd a speedy recovery.
OpenWorld, the company's annual user conference in San Francisco, is scheduled to begin next week. In the press release, Hurd said he was confident that "the entire management team will do an outstanding job implementing the exciting plans we will be presenting at the upcoming OpenWorld."
In a Separate Statement, Oracle Announces 81 First Quarter Earnings A Cents share excluding specific items was $ 9.22 billion in sales, which was approximately unchanged on an annualized basis. The result was in line with estimates, while sales were only just below the expectations of analysts surveyed by Refinitiv of $ 9.29. Almost three-quarters of Oracle's revenue now comes from cloud services and license support.
Oracle shares fell by about 5% after the close. The stock has risen by about 25% this year. [Mark59002] "Mark was extremely committed to the business until the end of our just completed first quarter, but now Mark needs to focus on his health," Catz said in the news release.
] Hurd's absence comes after one of Oracle's top executives, Thomas Kurian, left the company in 2018 to head Alphabet's Google Cloud business. Another CEO, Amit Zavery, followed Kurian to Google earlier this year.
Hurd will continue to receive benefits during his vacation, Oracle said in a regulatory filing on Wednesday. In fiscal year 2018, Hurd received $ 108.3 million in aggregate compensation, most of which was $ 103 million in option premiums, according to Oracle's most recent proxy statement. He earned around $ 41 million in each of the previous two fiscal years.
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