Summary
Salesforce, Inc. (CRM) filed an 8-K on November 28, 2016, disclosing material changes to the compensation arrangements for its Named Executive Officers, effective November 22, 2016. The report details adjustments to annual base salaries and annual target bonuses for Fiscal Year 2018, alongside new grants of stock options, restricted stock units (RSUs), and performance-based RSUs (PRSUs). These changes reflect the company's strategy to align executive compensation with company performance and shareholder value creation.
Key Highlights
- 1Adjustments to base salaries and target bonuses for Named Executive Officers effective February 1, 2017, for FY2018.
- 2Grant of stock options to all Named Executive Officers, with standard four-year vesting.
- 3Grant of Restricted Stock Units (RSUs) to most Named Executive Officers, also subject to a four-year vesting schedule.
- 4Significant awards of Performance-Based Restricted Stock Units (PRSUs) to Named Executive Officers, with vesting tied to total shareholder return (TSR) relative to the NASDAQ-100 Index.
- 5PRSU vesting has a performance period through December 15, 2019, with potential payouts ranging from 0% to 200% of target shares based on relative TSR ranking.
- 6PRSUs include provisions for accelerated vesting upon a change of control, contingent on relative TSR performance and employment status.
- 7The filing includes the form of the Performance-Based Restricted Stock Unit Agreement as an exhibit.