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BUSINESS

Updated September 26, 2013, 1:28 a.m. ET

Pay at Oracle Under Fire

By JOANN S. LUBLIN And SHIRA OVIDE

Investors are growing more dissatisfied with Oracle Corp.'s years of high pay for Chief Executive Larry Ellison—discontent that may produce a showdown at the technology company's Oct. 31 annual meeting. Some shareholders complain that Mr. Ellison, who founded the software giant and beneficially owns a quarter of the company's shares, continues to receive tens of millions of dollars of stock options every year, even when Oracle's performance has been mixed. Mr. Ellison received compensation valued at $76.9 million in the fiscal year ended in May. Oracle's stock rose nearly 28% in those 12 months, but it plunged 9% June 21 on the second straight quarter of flat sales. Even with Mr. Ellison's large stake, Oracle only narrowly won investor support for its executive-pay practices in 2011 and suffered a defeat in 2012. Last year's opponents included Vanguard Group Inc. and BlackRock Inc., Oracle's largest and third-largest institutional shareholders, regulatory filings show. BlackRock also voted against the reelection of five Oracle directors, including those serving on the pay panel. Investors concerned the company hasn't been more responsive to their complaints may step up the pressure this year. In a letter sent Wednesday to Bruce R. Chizen, chairman of the board's compensation committee, CtW Investment Group said it would vote against Oracle's compensation practices and possibly seek to unseat directors on the compensation committee if Oracle doesn't put limits on its options awards and bring in a new, independent...