- Salesforce shareholders rejected the company’s proposed compensation plan for senior executives.
- A major consulting firm recommended a vote against the plan.
- However, shareholders voted against the plan to have an independent chairman of the board.
Elon Musk’s Tesla shareholders approved a huge payout last month, sending the CEO doing a victory dance onstage. His total compensation over 10 years is estimated at $55 billion, the largest ever for a CEO.
Salesforce CEO Marc Benioff likely won’t be dancing this week.
The company said in a regulatory filing on Monday that 53% of shareholders voted against the proposed compensation plan for Benioff and other senior executives. The vote is non-binding.
Under the plan, Benioff’s base salary will remain at $1.55 million, but the stock incentives will boost his total compensation to $39.6 million from last year’s $29.9 million.
Large investment advisory firms Glass Lewis and Institutional Shareholder Services had recommended shareholders vote against the compensation plan.
The annual vote was not a blanket vote of no confidence in Benioff: Shareholders overwhelmingly voted against an independent chairman, keeping him in his position. The company said 77% of its 13-member board is independent.
Bloomberg values Benioff’s net worth at about $10 billion.
Salesforce said in an investor document that Benioff’s proposed compensation package was “between the 50th and 75th percentile of the market” when compared to 17 peer companies, including Microsoft and Workday.
Despite the possibility of Benioff’s large stock grant, the company said it would reduce its stock-based compensation as a percentage of revenue to 8% in fiscal 2024, which ends Jan. 31, from 10.5% in fiscal 2023.
Salesforce said in materials ahead of its annual meeting that its initial $15 million stock grant to Benioff for fiscal 2024 was lower than previous years and most peers because of a tough fiscal 2023. But after the company recovered, its compensation committee proposed increasing Benioff’s stock payout with a second stock grant worth $20 million.
Salesforce shares are flat so far this year but are up 21% over the past 12 months.
Salesforce did not immediately respond to Business Insider’s request for comment.
