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Ellison's omnipotence reined-in by CFO job switch
Henley take Chairman role and watchdogs wag their tails...

By Dawn Kawamoto

Published: Tuesday 13 January 2004

Oracle has announced that CFO Jeff Henley will become chairman of the database company and step down from his role as chief financial officer as soon as a replacement is hired.

This announcement ends months of speculation about when Henley would leave his post at the company and is likely to please watchdogs who have been concerned about the all-powerful role of CEO Larry Ellison.

Safra Catz and Chuck Phillips, both executive vice presidents, will serve as co-presidents and report to Ellison, who had also served as the company's chairman. The changes are effective immediately.

Phillips will also be joining Oracle's board of directors; Catz and Henley are already directors.

A statement from Michael Boskin, an Oracle director and chairman of the company's nomination and governance committee, said: "The Oracle board of directors believes these changes will enable the company's deep management talent to better serve customers, run the company with excellence and integrity and complement its good corporate governance."

Henley's move into the chairman spot should please corporate watchdogs and investors who are worried about all-powerful CEOs, said Cameron Steele, a securities analyst at RBC Capital.

"Based on [Larry Ellison's] ownership of the company and his dual roles, he has quite a bit of power," Steele said. "I would expect this to be more of a trend" with other companies.

Dawn Kawamoto writes for News.com