Shareholders Will Probably Hold Off On Increasing Salesforce, Inc.'s (NYSE:CRM) CEO Compensation For The Time Being

Key Insights

• Salesforce will host its Annual General Meeting on 5th of June
• CEO Marc Benioff's total compensation includes salary of US$1.55m
• The overall pay is 227% above the industry average
• Salesforce's total shareholder return over the past three years was 58% while its EPS grew by 62% over the past three years

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Under the guidance of CEO Marc Benioff, Salesforce, Inc. (NYSE:CRM) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Salesforce

How Does Total Compensation For Marc Benioff Compare With Other Companies In The Industry?

Our data indicates that Salesforce, Inc. has a market capitalization of US$266b, and total annual CEO compensation was reported as US$55m for the year to January 2025. We note that's an increase of 39% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.6m.

For comparison, other companies in the American Software industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$17m. Accordingly, our analysis reveals that Salesforce, Inc. pays Marc Benioff north of the industry median. Moreover, Marc Benioff also holds US$6.1b worth of Salesforce stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 10% of total compensation out of all the companies we analyzed, while other remuneration made up 90% of the pie. Salesforce has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Salesforce, Inc.'s Growth

Salesforce, Inc. has seen its earnings per share (EPS) increase by 62% a year over the past three years. It achieved revenue growth of 8.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Salesforce, Inc. Been A Good Investment?

We think that the total shareholder return of 58%, over three years, would leave most Salesforce, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Salesforce prefers rewarding its CEO through non-salary benefits. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Salesforce that investors should think about before committing capital to this stock.

Switching gears from Salesforce, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.