Salesforce shareholders reject compensation plan for CEO Marc Benioff, other top execs
How many votes supported the compensation resolution?
The compensation resolution received 339.3 million votes in support. However, it was voted down by 404.8 million votes against, as shareholder advisory firms and investors raised concerns about equity awards granted to CEO Marc Benioff.
Why did Salesforce plan to lay off 10% of its employees?
Salesforce planned to lay off 10% of its employees due to economic slowdown and overhiring during the pandemic. The company aimed to reduce its workforce and scale back office space in response to a more measured approach taken by its customers in their purchasing decisions. This move followed significant headwinds faced by Salesforce and other tech companies in the uncertain macroeconomic environment.
What concerns did advisory firms have about Benioff's equity award?
Advisory firms Glass Lewis and Institutional Shareholder Services raised concerns about the substantial discretionary equity grants issued to CEO Marc Benioff in January, stating there was a lack of a fully convincing rationale behind the grants1. They considered the additional performance-based restricted stock units and stock options as unwarranted, given Benioff's already significant stake in Salesforce.