CEOs often hit the jackpot, largely because they serve themselves. And Salesforce’s billionaire CEO Marc Benioff isn’t any exception. But it seems Benioff’s winning streak is beginning to fade after his shareholders put the brakes on his latest lavish compensation package.
Along with the proposed pay plans of other Salesforce executives, Benioff’s proposed compensation was rejected by 404.8 million votes (versus 339.3 million in favor), in accordance with a Securities and Exchange Commission filing released on Monday.
Like many bigwigs, Benioff’s real wealth comes from his stock options. His base salary remained at $1.55 million, but in fiscal 2024 he raked in $39.6 million. Last yr, Benioff earned $29.9 million, and his wealth soared when Salesforce offered him much more stock, including a $20 million opportunity to take part in the plan shareholders had just rejected, in accordance with a Salesforce Proxy Statement.
While the board encouraged shareholders to just accept this proposal, two shareholder advisory firms, Glass Lewis and Institutional Shareholder Services, suggested otherwise, in accordance with CNBCHowever, the shareholders’ vote is just not binding, which suggests Benioff could still get his million-dollar bonus.
Salesforce didn’t immediately reply to Fortunes Request for comments.
Both executives and shareholders have fared quite well within the shadow of the pandemic, with shareholder payouts and CEO pay “rising to record levels,” in accordance with the nonprofit organization Oxfam. Analyze report greater than 200 of the most important US corporations. According to the study, CEO salaries increased by 31% between 2018 and 2022.
“The rules are being manipulated and companies are helping,” said Irit Tamir, senior director of Oxfam America’s private sector division Assets in March, adding that “we are essentially in a new Gilded Age.”
You only have to have a look at Elon Musk’s recent victory to see how the sport is played. Earlier this yr, a judge in Delaware ruled that Musk’s proposed Tesla pay package of a record $55 billion was unjustified, calling it an “outrageous sum.”
“The process that led to the approval of Musk’s compensation plan was deeply flawed,” said Treasury Secretary Kathaleen McCormick wroteand added that the CEO had “extensive connections with the individuals negotiating on Tesla’s behalf.”
Still, the board fought back against the choice and asked shareholders to vote on the package again. They overwhelmingly sided with Musk, approving a compensation plan that’s now price $44.9 billion, in accordance with the Associated Press. This despite Musk being criticized for splitting his attention between too many projects and even being dubbed the “absent CEO” by Ross Gerber, CEO of Gerber Kawasaki.
Gerber, himself a shareholder, sharply criticized the Tesla board before the second vote. “Not only is the board not independent, it’s basically working for Elon,” he told Fox Business. “At some point you just have to say, this board needs to be replaced.”
Still, Musk’s absence appears to be price billions within the CEO’s pandemic-era. The same can’t be said for Benioff up to now – but that might change.
