Oracle’s new president Hurd to draw near million-dollar salary

Oracle Corp, the world's second-biggest software maker, said it will pay its new president Mark Hurd, formerly chief executive of Hewlett-Packard Co, $950,000 a year in salary, along with a massive bonus of as much as $10 million.

Hurd's target bonus for fiscal 2011 is $5 million, which may be higher if he exceeds performance targets, Oracle said in a regulatory filing. He also gets the option to purchase 10 million shares of the company's stock at the market price on the date of the grant, allowing him to profit as the stock rises.

Hewlett-Packard filed a lawsuit on Tuesday to stop Hurd from working at Oracle. Hurd signed several non-disclosure agreements while at HP and it would be impossible for him to work as president at Oracle without disclosing HP trade secrets and confidential information, the company said in its complaint (See: Technology giants battle for Mark Hurd as HP sues Oracle).

Hurd left HP on 6 August after the company said he violated standards of business conduct. As part of his severance, Hurd was due to receive a payment of $12.2 million, plus other benefits that include restricted HP shares. All told, Hurd may receive $40 million to $50 million from HP, according to estimates.

Oracle chief executive Larry Ellison in a statement called the HP lawsuit ''vindictive'' and said it would make it more difficult for the two companies to work together.

In his new position at Oracle, Hurd would report to Ellison and lead sales, consulting, marketing and customer support at Oracle. The software maker has increased sales through a string of acquisitions that widened the company's portfolio and added customers.

Hurd will also receive the option to buy 5 million additional shares a year for the next five years as part of Oracle's company-wide employee stock option grants.