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As Tesla shareholders approve CEO Elon Musk's historic $56 billion compensation, shareholders at Salesforce have a unique stance on CEO Marc Benioff's $39.6 million pay.
A Monday U.S. Securities and Change Fee submitting detailed the result of Salesforce's annual assembly on Thursday. Extra stakeholders, over 404 million, voted in opposition to the pay packages of Salesforce's management. About 339 million voted in favor of the pay.
The vote is non-binding, that means that Salesforce does not have to alter something primarily based on the result. The corporate "will think about the result" of the vote in future government compensation plans, based on its proxy statement for the 2024 fiscal 12 months.
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The identical assertion disclosed that Benioff made $39.6 million whole within the 2024 fiscal 12 months, which was practically $10 million greater than the earlier 12 months. His base wage was $1.55 million; inventory awards, bonuses, and different awards contributed to the majority of his compensation.
He made 240 occasions greater than the $164,985 wage of Salesforce's median worker, per the assertion.
Salesforce CEO Marc Benioff. Photographer: Chris Ratcliffe/Bloomberg by way of Getty Pictures
Based on a June study from the Related Press, the median CEO final 12 months was round $1.3 million. The midpoint pay bundle for CEOs, factoring in wage, bonuses, and inventory awards, was $16.3 million.
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Benioff's pay this 12 months notably included safety prices he beforehand coated.
"Traditionally, the Firm paid numerous prices referring to surveillance, monitoring, and safety providers together with at Mr. Benioff's residences, and Mr. Benioff coated sure bills referring to safety personnel and set up and upkeep of safety gear," the assertion reads.
Nonetheless, Salesforce's compensation committee determined that "the non-public safety prices" Benioff beforehand paid have been "acceptable to be borne by the Firm" starting fiscal 12 months 2024.
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Salesforce's government compensation had overwhelming assist (82%) in 2023, based on the proxy assertion. So what modified this 12 months?
Based on CNBC, two influential advisory firms, Glass Lewis and Institutional Shareholder Companies, really helpful that shareholders vote in opposition to the compensation this 12 months.
Glass Lewis wrote there was a "lack of a totally convincing rationale" for Salesforce giving Benioff sure inventory grants.
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