Business Context and Reporting Period
This Form 8-K filing by Salesforce, Inc. (Salesforce.com, Inc.) is dated March 31, 2015. The report discloses executive compensation actions and a change in employment status for a former Chief Financial Officer.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on specific cash bonus payouts to named executive officers for fiscal year 2015 performance (February 1, 2014, to January 31, 2015).
| Named Executive Officer | Position | Bonus Amount Paid (March 31, 2015) |
|---|---|---|
| Marc Benioff | Chairman and CEO | $2,096,640 |
| Graham Smith | Executive Vice President (former CFO) | $487,500 |
| Keith Block | President and Vice Chairman | $728,000 |
| Parker Harris | Co-Founder | $473,200 |
| Burke Norton | Chief Legal Officer | $473,200 |
| George Hu | Chief Operating Officer | $367,250 |
Note: George Hu's bonus was pro-rated due to a personal leave of absence. Mid-year bonus payouts made on September 30, 2014, are excluded from the table above but noted in the filing.
Material Changes and Executive Actions
- Extension of Employment: Graham Smith, formerly the Chief Financial Officer, entered into a Services Agreement on March 31, 2015, to continue employment as Executive Vice President beyond his anticipated retirement date. He will advise the CEO on assigned projects, including those involving the Salesforce Foundation.
- Compensation Terms for Smith: Mr. Smith will retain his salary, target bonus opportunity, benefits, and equity vesting at pre-agreement levels. Notably, his fiscal year 2016 bonus is guaranteed at 100% of target regardless of performance achievement, subject to continued employment.
- Legal Fees: The Company agreed to pay or reimburse Mr. Smith for reasonable attorney's fees related to the negotiation of the Services Agreement.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or general risk factors. The primary contingency noted is the pro-ration of George Hu's bonus due to his leave of absence. The agreement with Graham Smith supersedes previous transition services arrangements.
Investor Verification Checklist
- Verify the total cash compensation impact of the fiscal 2015 bonuses and the guaranteed fiscal 2016 bonus for Graham Smith.
- Confirm the specific scope of projects Graham Smith will advise on as Executive Vice President.
- Review the Company's Proxy Statement on Schedule 14A (filed May 7, 2014) for the full details of the corporate performance goals used to calculate the bonuses.
- Check subsequent filings for updates on George Hu's return from leave or further changes to the executive team.