Shareholder advisory firms raised concerns about additional pay for CEO Marc Benioff in the form of equity grants.
Salesforce investors declined to approve compensation for the company's executives, defying a board recommendation.investors voted against the company's compensation plan for top executives, after shareholder advisory groups raised concerns about equity awards granted to CEOon Monday, the resolution to approve the compensation received 339.3 million votes in favor and 404.8 million against at the annual meeting held on Thursday.
The board had urged shareholders to vote in favor of the resolution ahead of event. But two shareholder advisory firms, Glass Lewis and Institutional Shareholder Services, both recommended that investors vote down the measure.For the 2024 fiscal year, Benioff received $39.6 million in total pay, up from $29.9 million in the prior year. While Benioff's salary was flat at $1.
In January, the board's compensation committee gave Benioff a second long-term equity award worth $20 million, in recognition of the company's"successful transformation actions and strong financial performance in the fiscal year," among other factors. Glass Lewis wrote in its recommendation that"shareholders may reasonably be wary of the substantial discretionary equity grants" issued to Benioff in January, adding that there was a"lack of a fully convincing rationale" behind the grants.Benioff was already among the largest holders of Salesforce, with a stake of over 2% valued at close to $6 billion.
Net income jumped to $4.1 billion in the fiscal year from $208 million a year earlier, while revenue increased 11% to $34.9 billion from $31.4 billion. In January 2023, Salesforceto lay off 10% of employees, after activist investors began buying up stakes and demanding a better mix of profit and growth. Salesforce
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