Oracle Chief Executive Larry Ellison has agreed to give up a payout reaching potentially $500 million to settle a dispute based around conflict of interest when Oracle purchased a firm that he controlled.
In 2011 , Oracle has agreed to buy Pillar Data Systems. The company was controlled by Oracle CEO Ellison founded in 2005 and has personally contributed $ 150 million to start the business .
Instead of paying cash up front , Oracle has agreed to buy data storage company through certain future payments based on performance Pillar Data Systems ” until 2014 . A part of the transaction, Ellison would receive the first $ 562 million of any payments related to the acquisition , according to court documents consulted by Reuters.
However, the case against the acquisition – launched by shareholders and pension funds of the Retirement System City of Employees and Transport Authority of Southeastern Pennsylvania – said the deal was ” contaminated by conflicts of interest and that it was unfair Oracle ” . During a hearing in August last year, concerns have been raised about the fact that “it was a legitimate business and if anyone can get a better deal . “