8-KMaterial Agreements

Salesforce, Inc. 8-K Report, Material Agreement (Mar 17, 2006)

Filed March 17, 2006For Securities:CRM

Summary

This Form 8-K filed by Salesforce.com, Inc. on March 17, 2006, reports on the entry into a material definitive agreement, specifically the award of cash bonuses to its executive officers on March 15, 2006. The bonuses were determined based on the achievement of corporate and individual goals for the fiscal year ending January 31, 2006, net of mid-year payouts. This filing provides transparency into executive compensation practices and highlights the company's performance-based reward structure. Investors can view this as an indicator of the company's financial health and its commitment to incentivizing key leadership to meet strategic objectives. While the CEO, Marc Benioff, received no bonus, other named executive officers, including the President of Worldwide Sales and Distribution, Jim Steele, and the Chief Financial Officer, Steve Cakebread, received significant bonus payouts, reflecting their contributions to the company's performance. The aggregate bonus payments to all executive officers underscore the company's strategy of tying compensation to results.

Key Highlights

  • 1Salesforce.com awarded cash bonuses to executive officers on March 15, 2006.
  • 2Bonus amounts were primarily based on the achievement of corporate and individual goals for the fiscal year ending January 31, 2006.
  • 3Mid-year bonus payouts made on September 30, 2005, were factored into the final bonus calculations.
  • 4Chairman and CEO Marc Benioff received no bonus payout on this date.
  • 5President of Worldwide Sales and Distribution, Jim Steele, received the largest bonus at $272,100.
  • 6Chief Financial Officer Steve Cakebread received a bonus of $141,204.
  • 7Aggregate bonuses paid to other executive officers totaled $277,885.

Frequently Asked Questions

The primary purpose of this Form 8-K is to report the entry into a material definitive agreement regarding the award of cash bonuses to Salesforce.com's executive officers, detailing the amounts paid and the basis for these awards.

The bonuses were primarily determined based on the achievement of specific corporate and individual goals for the fiscal year that started on February 1, 2005. These final payouts were calculated net of any mid-year bonus payments made on September 30, 2005.

While most executive officers received bonuses, Chairman and CEO Marc Benioff did not receive a bonus payout on March 15, 2006. Other named executive officers, such as Jim Steele and Steve Cakebread, received significant bonus amounts, and an additional $277,885 was paid in aggregate to other executive officers.

The fact that bonuses were awarded, particularly significant amounts to key sales and financial officers, suggests that the company likely met or exceeded performance targets for the fiscal year. This aligns executive compensation with company success.