01—Abstract
Summary
Summary of the 8-K filed February 23, 2018. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from Salesforce.com, Inc. (CRM) on February 23, 2018, details changes to the compensation arrangements for its Named Executive Officers, effective February 17, 2018, for fiscal year 2019.
The primary focus is on adjustments to annual base salaries and annual target bonus percentages for key executives, including CEO Marc Benioff, CFO Mark Hawkins, and other top officers. These changes reflect the company's commitment to aligning executive compensation with company and individual performance objectives under the Kokua Bonus Plan. Investors should note that the compensation adjustments are prospective, set to be effective from February 1, 2018, for the upcoming fiscal year 2019.
The structure of the bonus payouts is tied to both company-wide and individual performance metrics, indicating a performance-driven compensation philosophy. While specific performance targets are not disclosed, the clear articulation of base salaries and bonus potential provides transparency into the company's executive remuneration strategy.
02—Key points
Key Highlights
- Changes to compensation for Named Executive Officers (NEOs) including Marc Benioff, Mark Hawkins, Keith Block, Alexandre Dayon, and Parker Harris.
- New annual base salaries and annual target bonus percentages approved for fiscal year 2019.
- Effective date for new compensation arrangements: February 17, 2018, for fiscal year 2019.
- Bonus payouts are contingent on achieving a mix of Company and individual performance objectives.
- Marc Benioff has the highest combined potential compensation with a base salary of $1,550,000 and a 200% target bonus.
- The compensation adjustments are made by the Compensation Committee of the Board of Directors.
- The filing adheres to Item 5.02 of Form 8-K, concerning director and officer appointments and compensation.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to disclose changes to the compensation arrangements, specifically annual base salaries and target bonus percentages, for Salesforce's Named Executive Officers for the upcoming fiscal year 2019.
When do these new compensation arrangements take effect?
The new compensation arrangements are effective as of February 17, 2018, and apply to fiscal year 2019, with salaries and bonus potential beginning February 1, 2018.
How will the bonuses for these executives be determined?
Bonuses will be determined based on the achievement of a mix of Company and individual performance objectives, as outlined in the Company's Kokua Bonus Plan.
Are there any specific performance targets mentioned in the filing?
No, the filing does not disclose the specific performance targets. It only states that bonuses are tied to achieving a 'mix of Company and individual performance objectives'.
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