We’re weighing in on how Larry Ellison should really spend his time… because why not?
Larry Ellison announced last Thursday that he was be stepping down as CEO of Oracle (ORCL), and that Safra Catz and Mark Hurd are be replacing him. Larry Ellison is not leaving the company, instead he will act as Chairman and CTO. Investors and management buffs alike have not reacted well. Oracle’s stock has dropped 5% since the announcement. Several management analysts predict that the co-CEO structure will make decision-making in the already-enormous company more convoluted. Others fear Larry Ellison’s over-the-shoulder management won’t permit the new directors the necessary leeway to lead.
Instead of bothering his new CEOs, we thought about some other ways that Larry Ellison could employ himself, as well as put his Oracle stock to use.
According to the Wall Street Journal, since 2000 Larry Ellison has raked in an estimated $2B from compensation, bonuses, perks and stock pay-outs. This year alone he has taken home $67.3M. He has also bought himself an array of expensive toys and gifts. Although it’s unknown how much cash Larry Ellison has on hand, it is certain he holds 25% of all Oracle’s stock, or roughly $44B. Assuming a 20% capital gains taxes and a 15% reduction in Oracle stock value if Larry Ellison were to sell his stake, we’d say he has roughly $25B for play. With that pot of money alone we can think of a few ways Larry Ellison could busy himself outside the boardroom:
- Buy 145,486 more of his favorite Marchetti airplane jets, ride a new one each day for the next 20 years and still have some to give away.
- Just drive into the sunset: he could procure 27,216 more McLaren F1s or 69,474 more Lexus LFAs, his favorite car
- Enjoy an après-ski in 1,297 different chateaux like his previous 2.62-acre Lake Tahoe home
- Own the entire Malibu coastline by purchasing 406 more beach front properties in Malibu (he already owns about 10 homes there)
- Buy every America’s Cup team member a carbon fiber catamaran and have 3,289 left over to give to every professional sailing team across America.
- Sail around the world in a new 454’ yacht every month for 4.5 years
- Become a golf aficionado by purchasing 615 golf courses like his Porcupine Manor
- Build 240 more mansions like his largest in Woodcliff, CA
- Develop 2,514 more Rhode Island mansions like his Beechwood Villa Estate into art museums, and then display one of his impressionist or Japanese samurai sculptures in each
But it seems most likely the US’ third richest man will turn his attention towards one of his most a-famed purchases: his Hawaiian island Lanai, which he bought for $500M in June 2012. Larry Ellison now owns 98% of the land on the island, and plans to turn all 138 acres into an economically sustainable experiment. He has said that he dreams of building sustainable mango and pineapple farms, as well as producing organic flowers to create perfume the old way, as they did in Grasse, France.
How far could $25B take him towards being sustainable? Pretty far. Larry Ellison could build 406,154 wind turbines, 198 desalination plants, and 58 solar power plants. He could also fund a bike-sharing system for the island 453,258 times over. Alternatively, he could procure a hefty sum of those things that really matter (and enable island-living Jimmy Buffet Style). He could stash a lifetime supply of 6.6 billion organically grown mangos, 8.8 billion fresh pineapples, or many millions of bottles of organic wine. He could even recreate his favorite drink, a Green River (yes, he’s a chicagoan through and through) 10.56 billion times at his esteemed “Soda Fountain” on the island.