Oracle names Schneider Electric’s Maxson as CFO amid soaring AI spending

A sign for Oracle Corporation is seen outside their offices in Santa Monica, Calif. on Wednesday, June 21, 2023. (AP Photo/Richard Vogel)

Oracle on Monday appointed Hilary Maxson as chief financial officer, tapping an executive with experience in infrastructure and energy to steer its efforts to meet surging demand for artificial intelligence and cloud services.

The appointment, which reinstates a crucial position after Safra Catz became co-CEO and principal financial officer in 2014, comes when the technology company has been taking on a heavy debt load to fund its massive AI infrastructure spending.

Maxson, whose appointment is effective immediately, had served as group CFO at Schneider Electric, a French industrial group with more than US$45 billion in annual revenue.

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Since she joined in 2017, Schneider transformed from an electrical equipment supplier into a digital energy technology partner for key segments through software, data and AI, Oracle said.

Schneider had no immediate comment on Monday, which was a national holiday in France.

Oracle has forecast spending $50 billion in fiscal 2026, more than double the capital expenditure in the previous fiscal.

Last month, the company said it planned to raise between $45 billion and $50 billion in 2026 to build additional capacity for its cloud infrastructure.

Oracle’s shares have fallen about 25 per cent so far this year amid investor concerns around the company’s multi-billion-dollar borrowing for data centers. They were down nearly one per cent in early trading on Monday.

Maxson, who will report to Oracle co-CEO Clay Magouyrk, said she aimed to ensure continued disciplined investment for creating lasting value for both customers and shareholders.

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Earlier in her career, Maxson spent 12 years at power company AES Corp, where she held senior leadership roles across finance, strategy and M&A.

Doug Kehring, who led the finance operations after Oracle appointed co-CEOs and Catz was named executive vice-chair of the board in September, will now focus on the company’s go-to-market operations.

Maxson, 48, will receive an annual base salary of $950,000 and will be eligible for a performance-based bonus with a target of $2.5 million, Oracle said in a regulatory filing.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila)