Salesforce Shareholders Reject CEO Marc Benioff’s Compensation Plan
Salesforce shareholders have rejected the compensation plan for CEO Marc Benioff and other top executives of the cloud-based software company, with a resolution to approve the compensation receiving 339.3 million votes in favor versus 404.8 million against, as seen in a security filing obtained by CNBC.
Shareholder advisory groups, including Glass Lewis and Institutional Shareholder Services, raised concerns about the equity awards granted to CEO Marc Benioff. The report reveals that Benioff’s pay package increased from $29.9 million in the previous year to $39.6 million in 2024. While his base salary remained flat, additional stock and option awards, 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 criticized by advisory firms. Glass Lewis questioned the rationale behind the substantial discretionary grant, pointing out Benioff’s already large stake in the company, valued at nearly $6 billion.
The shareholder advisory firm argued that the additional performance-based stock units and options were unnecessary. Earlier reports suggested that Salesforce is planning to lay off 700 employees, roughly 1% of its workforce, following a 10% staff reduction in 2023 to streamline operations after a pandemic hiring surge.
Despite the recent cuts, Salesforce announced plans to hire over 3,000 new employees last year. The company’s downsizing efforts have boosted earnings, with revenue rising in Q2 and Q3 and an increased annual profit forecast. The rejection of the compensation plan highlights the ongoing scrutiny faced by top executives in the tech industry regarding their pay packages.
