This excerpt taken from the ORCL DEF 14A filed Aug 21, 2009.
ADOPTION OF THE FISCAL YEAR 2010 EXECUTIVE BONUS PLAN
On August 21, 2009, the Compensation Committee unanimously approved the adoption of the Fiscal Year 2010 Executive Bonus Plan (the Bonus Plan) and directed that the Bonus Plan be submitted to the stockholders at the Annual Meeting. If the Bonus Plan is not approved by stockholders, targets under the Bonus Plan set by the Compensation Committee on August 21, 2009, will be null and void, and no payments relating to those targets may be made. We may also pay discretionary bonuses, or other types of compensation, outside the Bonus Plan which may or may not be deductible.
The purpose of the Bonus Plan is to motivate certain executives to achieve our financial performance objectives and to reward them when those objectives are met.