Summary
This Form 8-K filing from Salesforce.com, Inc. (CRM) on August 16, 2006, primarily details an amendment to the compensation package for its Executive Vice President and Chief Financial Officer, Steve Cakebread, and provides an update on the company's financial results for the second quarter ended July 31, 2006. Mr. Cakebread's base salary will increase, and he is eligible for a significant bonus and a stock option grant, indicating continued confidence in his leadership. The filing also highlights the company's financial performance, including the adoption of SFAS 123R for stock-based expenses and the presentation of non-GAAP financial measures to offer a clearer view of operational trends.
Key Highlights
- 1Steve Cakebread, EVP and CFO, will have his annual base salary increased to $400,000, effective September 1, 2006.
- 2Mr. Cakebread is eligible for an annual bonus of up to $300,000, contingent upon achieving performance objectives.
- 3Subject to board approval, Mr. Cakebread will receive an option grant for 300,000 shares of the Company's Common Stock with vesting requirements.
- 4The company released its Q2 FY2007 results (quarter ended July 31, 2006) via a press release attached as an exhibit.
- 5Salesforce adopted SFAS 123R, resulting in $10.2 million in pre-tax stock-based expense for Q2 FY2007.
- 6Non-GAAP financial measures are provided to exclude stock-based expenses, amortization of acquired intangibles (from Sendia acquisition), and a one-time income item from prior year, for a clearer operational view.
- 7Steve Cakebread has withdrawn his resignation and will continue as EVP and CFO, and as the principal financial and accounting officer.