Oracle gave Larry Ellison and his co-CEOs nearly $1 billion in stock options. By fiscal year end, all were underwater
Oracle shares fell 9 percent in a single trading day and dropped 55 percent over the past year, closing at $126. The decline erased $15 billion from Larry Ellison's stake, leaving it $232 billion below its 2025 peak. Market concerns center on rising artificial intelligence debt costs, massive capital expenditures, and customer concentration risks. Meanwhile, Larry Ellison pledged shares in Oracle, Tesla, SpaceX, and Paramount Skydance as collateral for loans supporting his son David Ellison's acquisition of Warner Bros. Discovery. JPMorgan and Citigroup expanded this collateral agreement before the transaction closed on October 6.
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- ✓ Oracle fell 9 percent in a week on artificial intelligence debt fears, cutting $15 billion from Larry Ellison's stake.
- ✓ Oracle stock is down 55 percent over the past year, closing at $126.
- ✓ Larry Ellison pledged Oracle, Tesla, SpaceX, and Paramount Skydance shares as collateral for loans ahead of his son David's acquisition of Warner Bros. Discovery, which closed October 6.
- ✓ JPMorgan and Citigroup expanded the collateral days before the acquisition closed.
What changed
Larry Ellison pledged shares across Oracle, Tesla, SpaceX, and Paramount Skydance as loan collateral for his son David Ellison's Warner Bros. Discovery acquisition, which closed on October 6.
Live updates
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Oracle Plunges on Debt Fears as Larry Ellison Pledges Shares
Oracle shares fell 9 percent in a single trading day and dropped 55 percent over the past year, closing at $126. The decline erased $15 billion from Larry Ellison's stake, leaving it $232 billion below its 2025 peak. Market concerns center on rising artificial intelligence debt costs, massive capital expenditures, and customer concentration risks. Meanwhile, Larry Ellison pledged shares in Oracle, Tesla, SpaceX, and Paramount Skydance as collateral for loans supporting his son David Ellison's acquisition of Warner Bros. Discovery. JPMorgan and Citigroup expanded this collateral agreement before the transaction closed on October 6.
Why it matters
The steep decline in Oracle stock follows a period where Larry Ellison and co-CEOs saw nearly $1 billion in stock options become underwater after a share price drop of 59 percent to 60 percent. Analysts note that Oracle faces questions over funding and negative free cash flow despite beating earnings per share estimates four quarters in a row. Michael Burry raised concerns about Big Tech depreciation accounting, adding pressure to Oracle alongside its $664 billion backlog.
What is confirmed
- Oracle fell 9 percent in a week on artificial intelligence debt fears, cutting $15 billion from Larry Ellison's stake.
- Oracle stock is down 55 percent over the past year, closing at $126.
- Larry Ellison pledged Oracle, Tesla, SpaceX, and Paramount Skydance shares as collateral for loans ahead of his son David's acquisition of Warner Bros. Discovery, which closed October 6.
- JPMorgan and Citigroup expanded the collateral days before the acquisition closed.
Still unconfirmed
- Michael Burry's concerns about Big Tech depreciation accounting suggest overstated earnings across the sector.
What to watch next
- Developments from Oracle's Investor Day following the October 28 event.
- Updates on Project Jupiter and open air permit milestones.
- The company's ability to manage its $664 billion backlog amid rising artificial intelligence debt costs.
confidence 95%Sources used for this update (8)
- www.billionaires.africa — American billionaire Larry Ellison loses $15bn on Oracle
- chiprook.com — Larry Ellison pledged Oracle, Tesla and SpaceX shares for ...
- finance.yahoo.com — Larry Ellison Borrowed Against His Tesla and SpaceX Stock to ...
- www.cnbc.com — Elon Musk invests about $1 billion in Skydance - CNBC
- finance.yahoo.com — Oracle Stock Is Down 55% in a Year. Bargain or Value Trap?
- www.tikr.com — Oracle Stock Is Down 55% in a Year. Bargain or Value Trap?
- www.tikr.com — Oracle Heads Into Investor Day as Goldman Cuts Its Target to ...
- finance.yahoo.com — Michael Burry Called It ‘One of the More Common Frauds ...
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Oracle Stock Drops Nearly 9% Amid AI Debt Concerns
Oracle shares fell nearly 9% in a single trading day as bond market warnings regarding AI startup CoreWeave impacted investors. This volatility follows a period where Larry Ellison and his co-CEOs saw nearly $1 billion in stock options become underwater after a share price decline of 59% to 60% from the peak. While executives faced these losses, CFO Hilary Maxson avoided them by using restricted stock units. The company currently manages a $664 billion backlog amid rising AI debt costs and recent workforce reductions.
Why it matters
The financial pressure stems from increased company spending and the volatility of AI-driven investments. Executive compensation structures created a divide in how leadership absorbed the stock's decline. The current market reaction links Oracle's stability to the health of AI infrastructure debt.
What is confirmed
- Larry Ellison and his co-CEOs hold nearly $1 billion in stock options that are underwater as of the fiscal year end.
- A share price decline of 59% to 60% from the peak rendered executive options worthless.
- CFO Hilary Maxson avoided similar losses by opting for restricted stock units.
Still unconfirmed
- Oracle layoffs were intended to fund AI initiatives.
What to watch next
- Updates on CoreWeave bond stability
- SEC filings regarding the $664 billion backlog
- Changes to executive compensation structures
confidence 80%Sources used for this update (2)
- 247wallst.com — Oracle Fell Nearly 9% as CoreWeave’s Bond Scare Spread
- smarterarticles.co.uk — Oracle Layoffs Barely Fund AI: Workers Carry Its Risk Instead
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Oracle Executive Stock Options Remain Underwater Following Price Drop
Larry Ellison and his co-CEOs hold nearly $1 billion in stock options that are underwater as of the fiscal year end. A share price decline of 59% to 60% from the peak rendered these awards worthless for the executives. While the CEOs suffered these losses due to the nature of their options, Chief Financial Officer Hilary Maxson avoided similar losses by opting for restricted stock units. Increased company spending contributed to the downward pressure on the stock price.
Why it matters
Stock options only provide value when the share price rises above a specific grant price. Restricted stock units maintain value regardless of whether the price drops, explaining the disparity in outcomes between the CFO and the CEOs.
What is confirmed
- Oracle granted nearly $1 billion in stock options to Larry Ellison and his co-CEOs.
- The stock price fell between 59% and 60% from its peak.
- CFO Hilary Maxson avoided losses by choosing restricted stock units.
What to watch next
- New Form 4 filings indicating insider buying or selling activity
- Quarterly earnings reports detailing company spending levels
confidence 100%Sources used for this update (3)
- www.marketbeat.com — Oracle (ORCL) Institutional Ownership 2026 - MarketBeat
- ejql.login.us6.oraclecloud.com — Sign In
- wallstsmart.com — ORCL Insider Trading 2026 | Oracle Corporation CEO & Officer ...
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Oracle's $988M stock options for Ellison, co-CEOs lose value
Oracle granted nearly $1 billion in stock options to Larry Ellison and his co-CEOs, but the sharp decline in share price left these awards underwater by the end of the fiscal year. The stock has fallen between 59% and 60% from its peak as company spending increased. Chief Financial Officer Hilary Maxson avoided these losses by choosing restricted stock units.
Why it matters
The significant decline in Oracle's stock price has resulted in substantial losses for its top executives, highlighting the risks and rewards of equity-based compensation. This development also raises questions about executive pay and performance. Oracle's fiscal year ended on May 31.
What is confirmed
- Oracle granted $988M in stock options to Larry Ellison and his co-CEOs.
- The stock options were underwater by the end of Oracle's fiscal year.
- Oracle's stock has fallen between 59% and 60% from its peak.
- Chief Financial Officer Hilary Maxson chose restricted stock units.
Still unconfirmed
- One co-CEO earned 6,623 times more than the company's median employee.
What to watch next
- Oracle's future stock performance
- Decisions on executive compensation
- Company spending and fiscal year performance
confidence 100%Sources used for this update (2)
- news.bitcoin.com — Oracle Gave Larry Ellison and His Co-CEOs Nearly $1 Billion ...
- fortune.com — Fortune C-Suite | Insights, Analysis & News for Top ...
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Oracle Stock Plunge Leaves Executive Options Underwater
Oracle granted nearly $1 billion in stock options to Larry Ellison and its co-CEOs, but a sharp decline in share price left these awards underwater by the end of the fiscal year. The stock has fallen between 59% and 60% from its peak as company spending increased. While top executives saw equity values plunge, Chief Financial Officer Hilary Maxson avoided these losses by choosing restricted stock units. A recent proxy filing also indicates one co-CEO earned 6,623 times more than the company's median employee.
Why it matters
The financial volatility follows a leadership transition where former CEO Safra Catz stepped aside after helping establish Oracle as an AI hyperscaler. Larry Ellison currently serves as Chief Technology Officer. The company's current valuation struggles contrast with Wall Street projections for a recovery by 2028.
What is confirmed
- Oracle granted nearly $1 billion in stock options to Larry Ellison and its co-CEOs.
- Oracle stock has fallen between 59% and 60% from its high.
- A company proxy filing shows a co-CEO earned 6,623 times the median employee salary.
Still unconfirmed
- Larry Ellison pledged $56.6 billion in Oracle shares as loan collateral.
- Larry Ellison spent nearly $10 million on eight Florida homes for staff and tutors.
What to watch next
- Wall Street performance markers leading toward 2028 recovery projections
- Further proxy filings detailing executive compensation ratios
confidence 90%Sources used for this update (12)
- docs.oracle.com — Oracle Help Center
- observer.com — Safra Catz Made Oracle an A.I. Giant, Then Stepped Aside. One Year Later, How Has Oracle Fared?
- en.wikipedia.org — Oracle - Wikipedia
- support.oracle.com — Welcome to My Oracle Support
- finance.yahoo.com — Oracle Filing Reveals Co-CEO Made 6,623 Times The Company’s ...
- eciks.org — ORCL stock falls nearly 4% after Project Jupiter notice, per ...
- fortune.com — Big Tech News & Industry Analysis | Section - Fortune
- www.peoplematters.in — Oracle filing shows CEO earned 6,623 times more than median ...
- www.fool.com — Oracle Is Down 59% From Its High. Here's Why a $5,000 ...
- www.forbes.com — Larry Ellison - Forbes
- www.billionaires.africa — Larry Ellison paid $10 million for eight homes for his staff
- finance.yahoo.com — Oracle Stock Is Down 60% From Its High. Here's Why I'm Still ...
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Oracle Executives Face Losses As Stock Options Fall Underwater
Oracle distributed nearly $1 billion in stock options to Larry Ellison and its co-CEOs, but steep market declines left all of the awards underwater by the end of the fiscal year. The technology company reported massive executive pay packages alongside a dramatic drop in its share price. While top executives saw the value of their equity awards plunge following a significant decline in the stock, newly appointed Chief Financial Officer Hilary Maxson experienced better outcomes by opting for restricted stock units.
Why it matters
Executive compensation structures at major technology firms frequently rely heavily on equity awards to align leadership incentives with shareholder returns. When share values drop precipitously, these large options packages can quickly lose their intended financial value, leaving executives holding underwater grants. Oracle maintains a prominent position in global cloud infrastructure and database software markets, making its compensation disclosures subject to intense scrutiny from investors.
What is confirmed
- Oracle gave Larry Ellison and its co-CEOs nearly $1 billion in stock options.
- Executive Chair and CTO Lawrence J. Ellison's 2026 total compensation was $131 million.
- By the fiscal year end, all of the stock options given to Larry Ellison and his co-CEOs were underwater.
- New CFO Hilary Maxson opted to take some of her pay in restricted stock units and fared much better.
What to watch next
- Any subsequent adjustments or repricing of underwater executive stock options by Oracle's board.
- Future quarterly earnings reports detailing further impacts on Oracle share prices.
confidence 100%Sources used for this update (11)
- Fortune — Oracle gave Larry Ellison and his co-CEOs nearly $1 billion in stock options. By fiscal year end, all were underwater
- calcalistech.com — Oracle’s co-CEOs got $350 million in equity awards. A year later, the stock had lost half its value
- SuaraGarut.ID — Oracle Reports Massive Executive Pay as Share Price Drops 56 Percent
- NDTV Profit — Larry Ellison, Oracle's Co-CEOs Got Nearly $1 Billion In Stock Options: What Went Wrong?
- TradingView — Oracle Corp Says Executive Chair & CTO Lawrence J. Ellison's 2026 Total Compensation $131 Million
- en.wikipedia.org — Oracle Corporation - Wikipedia
- en.wikipedia.org — Oracle Database - Wikipedia
- finance.yahoo.com — Oracle Corporation (ORCL) Stock Price, News, Quote & History ...
- fortune.com — Oracle gave Larry Ellison and his co-CEOs nearly $1 billion in stock options that are now underwater
- vcptrading.com — Oracle gave Larry Ellison and his co-CEOs nearly $1 billion ...
- newsio.io — Oracle gave Larry Ellison and his co-CEOs nearly $1 billion ...
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