Oracle announced on Monday that it has appointed insiders Clay Magouyrk and Mike Sicilia as co-CEOs, succeeding Safra Catz, who played a vital role in developing the company’s cloud strategy and secured significant contracts during the ongoing AI boom.
Over her 11 years at the helm, Catz transformed Oracle into a powerhouse in cloud services, boosting its market value to nearly $1 trillion as she fiercely competed against major players like Microsoft and Alphabet.
Catz will continue to serve at Oracle as an executive vice chair on the board.
During her tenure, Oracle’s stock soared by over 586%, highlighting her influence. This year alone, the company’s shares have surged approximately 85%, largely due to the AI revolution, eclipsing the stock performances of competitors like Microsoft and Alphabet.
Currently, Sicilia, 54, is responsible for cloud applications and AI products, while the 39-year-old Magouyrk oversees the cloud infrastructure that supports these initiatives.
The promotions of these two executives underscore the tech industry’s focus on cloud computing, as businesses invest billions to strengthen their AI infrastructure.
An analyst from Evercore ISI noted that investors are well-acquainted with both leaders, emphasizing their importance to Oracle’s growth in cloud and industry sectors.
They added that a smooth transition is anticipated in the near term, as Larry Ellison continues as CTO and Catz remains in her role on the board.
Oracle is also central to ongoing discussions concerning TikTok’s operations in the U.S., as the data of American users is stored within Oracle’s cloud infrastructure, according to reports.
The company has reiterated its financial forecasts from earlier this month, projecting that its reservation revenues in the Oracle Cloud Infrastructure segment could exceed $5 trillion.
Moreover, Oracle is reportedly on the verge of one of its largest cloud deals with OpenAI, which is expected to purchase $300 billion in computing power over the next five years.
Catz’s Career
Safra Catz became CEO in 2014 alongside the late Mark Hurd, following Larry Ellison’s decision to step away from day-to-day operations. Under her leadership, Oracle’s stock experienced massive growth.
According to Forbes, Catz, with a net worth of $3.3 billion, stands as one of the most prominent female CEOs in the tech space and ranks 15th on the list of the richest self-made women in America.
With training in finance and law, Catz worked as a Wall Street banker before joining Oracle in 1999.
New co-CEO Magouyrk has been with Oracle since 2014, having moved over from Amazon Web Services, while Sicilia joined the company through the acquisition of Primavera Systems.
In terms of compensation, Magouyrk will receive stock options to acquire $250 million worth of Oracle shares, while Sicilia will have options worth $100 million.
This dual CEO structure is becoming more common in the industry, especially as companies expand and diversify their operations.
For instance, chipmaker Intel appointed two interim CEOs before settling on its current leader, while KKR is co-led by Joseph Bae and Scott Nuttall.
