BNP Paribas Open and Indian Wells Tennis Garden owner Larry Ellison made some interesting headlines earlier this month as the fiscal cliff nears. The famed Silicon Valley innovator and Oracle founder/CEO stands to save millions of dollars this year in taxes thanks to an “accelerated” stock dividend payment approved by Oracle’s board, Forbes.com reports:
“Pointedly, Oracle says that billionaire Larry Ellison, its CEO and largest shareholder, was not involved in the board’s deliberations or vote on the decision. But Ellison, who owns 22.9% of the company, stands to reap the biggest windfall.”
Ellison (pictured above at the BNP Paribas Open in 2011), who also owns the Porcupine Creek estate in Rancho Mirage (formerly owned by billionaires Tim and Edra Blixseth) reportedly will receive nearly $200 million from the accelerated dividend payment this month on his more than 1.1 billion Oracle shares. Forbes reports that Ellison stands to see “considerable” tax savings at a 15 percent rate that could climb to as high as 44 percent next year (depending on how the approaching fiscal cliff snafu plays out).
Forbes notes that Oracle isn’t alone – other companies, such as Wal Mart, are moving up their dividend payments ahead of rate increases too.