Oracle Names Longtime CFO As New Chairman

Ellison also promoted two of his closest advisers, Safra Catz and Charles Phillips, to co-presidents of the Redwood Shores, Calif.-based company.

Henley's unexpected appointment as chairman is designed to create more autonomy between Oracle's board and management -- a dividing line that has become more important to shareholders after a series of accounting scandals rocked corporate America.

Henley, Oracle's CFO for nearly 13 years, will remain in that job until the company finds a successor.

'Jeff's knowledge and experience ideally qualify him to be our new chairman,' Ellison said. 'I'm looking forward to working with Jeff for years to come.'

Ellison, who launched Oracle in 1977 and remains the company's largest shareholder, had been the company's chairman since 1995. His management responsibilities will remain unchanged, the company said.

Catz and Phillips also will continue to oversee the same areas that they did as executive vice presidents. Their promotions mark the first time that Oracle has had a president since its former chief operating officer, Ray Lane, resigned from the company in 2000 after a falling out with Ellison.

Besides becoming president, Phillips also will join Oracle's board. Oracle hired Phillips eight months ago after a long career as a software industry analyst. Catz, a former investment banker, joined Oracle five years ago and has been a board member since 2001.

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