As Tesla shareholders ADOPTED CEO of Elon Musk HISTorIcaL $56 billion in compensation, Salesforce shareholders have a different take on CEO Marc Benioff's $39.6 million salary.
or Monday A US Securities and Exchange Commission filing detailed the outcome of Salesforce's annual meeting on Thursday. More stakeholders, over 404 million, voted against Salesforce's leadership pay packages. About 339 million voted in favor of the wage.
The vote is nonbinding, which means that Salesforce should not change anything based on the result. The company “will take into account the outcome” of the vote in future executive compensation plans, it said proxy statement for fiscal year 2024.
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The same statement revealed that Benioff earned a total of $39.6 million in fiscal 2024, which was nearly $10 million more than a year earlier. His base salary was $1.55 million; Stock awards, bonuses and other awards contributed to the bulk of his compensation.
He made 240 times the $164,985 salary of the average Salesforce employee, according to the statement.
Salesforce CEO Marc Benioff. Photo: Chris Ratcliffe/Bloomberg via Getty Images
According to a June STUDY from the Associated Press, the average CEO last year was about $1.3 million. The median pay package for CEOs, taking into account salaries, bonuses and stock awards, was $16.3 million.
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Benioff's salary this year notably included the security costs he previously covered.
“Historically, the Company has paid various costs related to surveillance, monitoring and security services, including at Mr. Benioff's residences, and Mr. Benioff has covered certain expenses related to security personnel and the installation and maintenance of security equipment. security,” the statement said.
However, Salesforce's compensation committee ruled that the “personal security costs” previously paid by Benioff were “appropriate to be borne by the Company” starting in fiscal year 2024.
Salesforce executive compensation had overwhelming support (82%) in 2023, according to the proxy statement. So what changed this year?
According to CNBCtwo influential advisory firms, Glass Lewis and Institutional Shareholder Services, recommended that shareholders vote against compensation this year.
Glass Lewis wrote that there was a “lack of a fully compelling rationale” for Salesforce to make certain stock grants to Benioff.
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