Salesforce shareholders have rejected the compensation plan for CEO Marc Benioff and other top executives of the cloud-based software company. In a security filing (seen by CNBC), the resolution to approve the compensation received 339.3 million votes in favour versus 404.8 million against.
What Salesforce shareholders have to say
According to a report by CNBC, shareholder advisory groups raised concerns about equity awards granted to CEO Marc Benioff . The report claims that two prominent shareholder advisory firms , Glass Lewis and Institutional Shareholder Services, had both advised investors to vote against the pay plan.
As per the report, even his pay package has increased from last year’s $29.9 million to $39.6 million in 2024. While Benioff’s base salary remained flat, additional stock and option awards , along with non-equity incentives and previously unbilled security fees, contributed to the hike.
In January, the board's compensation committee granted a $20 million long-term equity award which was also criticised.
Glass Lewis questioned the rationale behind such a substantial discretionary grant , citing Benioff's existing large stake in the company (which is over 2% and valued at nearly $6 billion).
The shareholder advisory firm also argued that the additional performance-based stock units and options were unnecessary.
Earlier, in January, a report claimed that tech company is planning to let go of 700 employees, which is roughly 1% of its workforce.
In 2023, Salesforce laid off 10% of its staff and shuttered offices to streamline a pandemic hiring surge. This downsizing boosted earnings, with revenue rising in Q2 and Q3 and the annual profit forecast increasing.
However, despite the cuts, Salesforce announced plans to hire over 3,000 new employees later last year. This suggested that it was a strategic workforce adjustment rather than a simple layoff.
What Salesforce shareholders have to say
According to a report by CNBC, shareholder advisory groups raised concerns about equity awards granted to CEO Marc Benioff . The report claims that two prominent shareholder advisory firms , Glass Lewis and Institutional Shareholder Services, had both advised investors to vote against the pay plan.
As per the report, even his pay package has increased from last year’s $29.9 million to $39.6 million in 2024. While Benioff’s base salary remained flat, additional stock and option awards , along with non-equity incentives and previously unbilled security fees, contributed to the hike.
In January, the board's compensation committee granted a $20 million long-term equity award which was also criticised.
Glass Lewis questioned the rationale behind such a substantial discretionary grant , citing Benioff's existing large stake in the company (which is over 2% and valued at nearly $6 billion).
The shareholder advisory firm also argued that the additional performance-based stock units and options were unnecessary.
Earlier, in January, a report claimed that tech company is planning to let go of 700 employees, which is roughly 1% of its workforce.
In 2023, Salesforce laid off 10% of its staff and shuttered offices to streamline a pandemic hiring surge. This downsizing boosted earnings, with revenue rising in Q2 and Q3 and the annual profit forecast increasing.
However, despite the cuts, Salesforce announced plans to hire over 3,000 new employees later last year. This suggested that it was a strategic workforce adjustment rather than a simple layoff.
