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While Tesla shareholders approved CEO Elon Musk’s historic $56 billion compensation, Salesforce shareholders are taking a different stance on CEO Marc Benioff’s $39.6 million pay.
a Monday A filing with the U.S. Securities and Exchange Commission detailed the results of Salesforce’s annual meeting on Thursday. More than 404 million shareholders voted against Salesforce’s executive compensation package. About 339 million voted in favor of the package.
The vote is Non-bindingThat means Salesforce isn’t required to make any changes based on the vote, and the company said it will “take into account” the vote in future executive compensation plans. power of attorney Towards fiscal 2024.
Related: The company caps its CEO’s pay based on how much its lowest-paid employees make.
The same statement revealed that Benioff will earn a total of $39.6 million for fiscal year 2024, up about $10 million from the previous year. His base salary will be $1.55 million, with stock awards, bonuses and other incentives making up the bulk of his compensation.
His salary is 240 times more than the average Salesforce.com employee’s annual salary of $164,985, according to the company.
Salesforce CEO Marc Benioff. Photo by Chris Ratcliffe/Bloomberg via Getty Images
June study According to the Associated Press, the average CEO made about $1.3 million last year. The median CEO pay package, which includes salary, bonuses and stock awards, was $16.3 million.
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Notably, Benioff’s compensation this year included security costs that he had previously covered.
“Previously, the Company has paid various fees relating to surveillance, monitoring and security services, including at Mr. Benioff’s residence, and Mr. Benioff has incurred certain expenses relating to security personnel and the installation and maintenance of security equipment,” the statement said.
However, Salesforce’s compensation committee decided that the “personal security expenses” that Benioff has been paying thus far should be “appropriate for the company to cover” starting in fiscal year 2024.
RELATED: Mark Zuckerberg made just $1 in salary in 2023 but more than $24 million in ‘other compensation’
According to the proxy statement, Salesforce executive compensation received overwhelming support (82%) for 2023. So what changed this year?
according to CNBCTwo leading advisory firms, Glass Lewis and Institutional Shareholder Services, have recommended shareholders vote against this year’s pay.
Glass Lewis wrote that Salesforce “lacks a sufficient and persuasive justification” for granting certain shares to Benioff.
Related: Salesforce CEO Marc Benioff donates $150 million to Hawaii