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End of era: Ellison steps aside as Oracle CEO

By WTOP Staff

MICHAEL LIEDTKE
AP Technology Writer

SAN FRANCISCO (AP) — Oracle co-founder Larry Ellison is stepping aside as CEO after 37 years at the helm of the business software maker, ending a colorful reign marked by his flamboyant behavior and outlandish wealth amassed while building one of the world’s best-known technology companies.

With the changing of the guard announced Thursday, Ellison will be handing over his job to his two top lieutenants, Safra Catz and Mark Hurd, who become co-CEOs.

Ellison, 70, intends to still play an influential role at Oracle Corp. He is taking over as Oracle’s executive chairman, replacing Jeff Henley in the position, and will oversee the engineering departments as chief technology officer. What’s more, Ellison remains Oracle’s biggest shareholder with a 25 percent stake in the Redwood Shores, California, company that accounts for most of his $51 billion fortune.

Catz, Oracle’s chief financial officer until Thursday, will be responsible for manufacturing, legal and finance, while Hurd will supervise sales and all services. Both of them will report to Oracle’s board instead of Ellison. Oracle isn’t hiring a CFO to replace Catz.

“I am going to continue to do what I have been doing the past several years and they are going to continue doing what they have been doing the past several years,” Ellison told analysts during a Thursday conference call.

Given that Catz and Hurd are already handling many of the same duties as Oracle’s co-presidents, the new pecking order may not seem like much of a change, especially among investors who worried about the company’s sluggish growth in recent years.

Oracle’s stock slipped 86 cents, or 2 percent, to $40.69 in Thursday’s extended trading following the company’s announcement. The downturn may have had more to do with Wall Street’s disappointment with Oracle’s fiscal first-quarter earnings, which were also announced late Thursday and missed analyst targets, than with the reshuffling of management duties.

The shake-up comes at a critical point in Oracle’s history. It is trying to adapt to the technological upheaval that is causing more of its corporate customers to lease software applications stored in remote data centers instead of paying licensing fees to install programs on machines kept in their own offices. The shift to Internet-connected software has become known as “cloud computing.”

“While there was some speculation Larry could step down, the timing is a bit of a head scratcher in our opinion and the Street will have many questions,” said FBR Capital Markets analyst Daniel Ives.

Although Ellison has steadfastly insisted that Oracle is well positioned to sell more cloud computing services, smaller rivals such as Salesforce.com Inc. and Workday Inc. have been growing at a much faster clip. Both Salesforce, started by former Oracle executive Marc Benioff, and Workday, founded by longtime Oracle nemesis David Duffield, were created explicitly as cloud computing specialists.

In a post on his Twitter account, Benioff cast doubt about whether Ellison is really relinquishing any control. “There always has been, and always will be, one CEO at Oracle,” Benioff tweeted.

Since he co-founded Oracle with $1,200 of his own money in 1977, Ellison has become has well known for his antics away from the office as his accomplishments as the company’s CEO.

Through the years, Ellison has driven fancy cars, flown his own jet, raced yachts, wooed beautiful women and owned ornate homes in San Francisco, Malibu and an exclusive Silicon Valley neighborhood, where he spent $170 million on a 45-acre compound designed to remind him of Japan and the samurai warriors that he admires. In 2012, he bought his own Hawaiian island by acquiring 98 percent of Lanai.

Last year, Ellison staged the boating race for America’s Cup in the San Francisco Bay, where a team of professional sailors that he personally financed won the trophy for the second straight time.

Ellison, a close friend of late Apple co-founder Steve Jobs, has always relished his status as the richest person in the nation’s high-tech heartland, where free-flowing stock options sometimes turned receptionists and cafeteria workers into millionaires. Money is “a method of keeping score,” Ellison once told an interviewer.

Catz, 52, is a former investment banker who joined Oracle in 1999. Hurd, 57, has been with Oracle for four years, but is best known the former CEO of Hewlett-Packard Co.

Hurd stepped down from HP in 2010 after that company’s board raised questions about his expense reports and his relationship with a company contractor.

Ellison ridiculed HP for its treatment of Hurd, a close friend, and hired him at Oracle.

“Safra and Mark are doing a spectacular job and deserve the recognition of their new titles,” Ellison told analysts Thursday.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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