401k & Retirement
Progress Wealth Management is not affiliated with Oracle. Progress Wealth communicates with its clients and loops in Oracle as appropriate to educate itself on your benefits. There is no guarantee, however, that the information we have provided is accurate. Employees are encouraged to contact their employer should they have any questions about their specific employee benefits.
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Oracle New Hire Compensation
Base salary: Most everyone understands how base salaries. You’re offered a certain amount of money per year and you’re paid biweekly the salary that’s owed to you in exchange for your labor.
Annual cash bonus: Annual Cash Bonuses are paid out once per year at Oracle. The value of the bonus depends on your role, performance, and company performance.
On-hire cash bonus: If you recently joined Oracle, you may have also received an on-hire cash bonus. These bonuses are typically paid out within the first 30-60 days of employment. On some occasions, these bonuses can be split into two separate payments.
Stock Awards: These are generally in the form of RSUs which, at Oracle vest 25% per year, every year. You won’t have control or be able to use the RSUs until they vest but most people appreciate knowing roughly how much they might be worth once they vest (just depends on the performance of their stock).
Restricted Stock Units
For most employees at Oracle, their stock awards can be as high as 20-30% of their total compensation every year. That’s significant and, given the tax implications, deserves thoughtful planning. You may get these awards initially when offered a job, as part of your annual compensation, or as an award for performing particularly well. These awards come in the form of a certain kind of equity compensation called “Restricted Stock Units” (or RSUs). RSUs at Oracle vest at a rate of 25% per year so, for example, if you received 100 shares of restricted stock, you’d have 25 vest in the first year. Once they “vest”, you’re given control and have the ability to start making decisions with them. These decisions may be to leave the stock invested in Oracle, sell them, and invest in something else (i.e. diversify your investments), sell them and pay off debt or sell them and pad your emergency account.
Oracle matches 100 percent of your contributions made in your 401k plan up to 10% of your base salary. For people under 50, the total amount you can contribute to your 401k in 2023, is $22,500. For people who are 50 and older, you can contribute up to $30,000. At Progress Wealth Management, we encourage our clients to make the most of this by maxing out their 401(k) contributions before utilizing any other benefits available to them unless they have short-term financial priorities that take precedence. There is no vesting period for Oracle’s matching contributions.
BrokerageLink is one of the investment options offered within your Oracle’s 401(k) plan. This option gives you access to thousands of additional mutual funds not available in the standard 401(k) plan. These include funds managed by Vanguard, PIMCO, and Eaton Vance. And why does this matter? For starters, you now have access to asset classes not included in your original offerings—above and beyond what was first given to you. Increases diversification with other assets could potentially create opportunities to make long-term returns greater than they would be without these new asset classes included in your portfolio.