Oracle Compensation Tussle

Some Oracle Direct (OD) reps have been dividing up larger contracts into multiple smaller contracts in order to garner higher margins on those sales.

And, management is not amused.

A memo e-mailed to Oracle Direct personnel last week sounded the alarm.

Oracle is trying to accelerate sales into mid-market accounts--hence the higher points on smaller contracts. And hence the new math on the part of some Direct reps.

The e-mail, sent from Mark Aboud's office, warned staff that this "unacceptable behavior" will not be tolerated. Aboud is the Oracle Direct dude.

"Swift action, including termination, will be taken against any reps found to be splitting deals across two contracts for personal compensation reasons," according to a copy of the memo examined by yours truly.

A spokeswoman for Oracle, Redwood Shores, Calif., had no comment.

Perhaps sadly, Oracle partners were not particularly surprised at this turn of events. "This has nothing to do with channel relations, but it's business as usual at Oracle," said one.

Said another; "Not only are they bashing our heads in, they're bashing each others' heads in," said another.

Not only that, another top OD type, Susan Hayden "has decided to pursue a career opportunity at Monster.com," according to yet another message out of Aboud's office sent June 5. He wished her luck and said her last day will be June 16.