Oracle's top two officers have adopted a policy to make prearranged stock sales, in an effort to diversify their portfolio and avoid concerns over whether they've engaged in insider trading, according to a company statement late Friday.
Under the new policy, Larry Ellison, Oracle's chief executive, can sell up to 120 million shares over 12 months and gift up to an additional 3.3 million shares to the Ellison Medical Foundation. If Ellison completes all of his preplanned sales, he will hold approximately 24 percent of the company. Jeff Henley, chief financial officer and chairman, will be allowed to sell up to 3 million shares over a six-month period. Henley will own 11.6 million shares of Oracle if he completes his prearranged sales. Both executives, however, will stop any prearranged sales if a material, nonpublic event regarding the company comes up.