I would imagine that they are as they own common stock, but i was thinking about a scenario today: Oracle has a dividend of $0.48/share, Larry Ellison owns 1,113,634,580 shares (finance.yahoo.com), this would mean that every quarter Larry would be paid $534,544,598.40 (1,113,634,580 * .48/share), I do not see how this could possibly be correct?
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1Oracle's annual dividend is $0.48/share – Bishop Jan 06 '15 at 23:43
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So every year he is paid that much in dividends? – Justin O'Brien Jan 06 '15 at 23:44
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6Yup. It's good to be the king. Taxed at the dividend rate, too. – Rocky Jan 06 '15 at 23:50
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4Note that he may own shares of different classes, not all of them may be eligible for dividends. – littleadv Jan 07 '15 at 03:23
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" I do not see how this could possibly be correct?" - well, "Net worth US$ 53.6 billion (Jan. 2015)" says Wikipedia, so maybe you need to expand the horizons of your thinking :) – AakashM Jan 08 '15 at 11:44
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Depends on if the stock pays a dividend or not. Some companies in their early years may choose to not pay dividends.
Your calculations are off as the dividend stated is annual that you'd have to divide by 4 to get what the quarterly amount would be and there can be variances as Ellison's compensation package may well include options so that the number of shares he owns could fluctuate over the course of a year.
JB King
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