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Salesforce shareholders approve equity plan expansion, officer exculpation

EditorLina Guerrero
Published 07/01/2024, 04:58 PM
© Reuters
CRM
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In recent corporate developments, Salesforce, Inc. (NYSE:CRM) convened its 2024 Annual Meeting of Stockholders on Thursday, where several key proposals were voted upon, as detailed in an 8-K filing with the U.S. Securities and Exchange Commission.

The meeting led to the election of all proposed directors, with Marc Benioff, the company's CEO, receiving over 717 million votes for his continued role. Additionally, Salesforce's stockholders approved the amendment and restatement of the company's 2013 Equity Incentive Plan. This plan, now extended to March 21, 2034, has been expanded to include an additional 36 million shares reserved for issuance.

Furthermore, an amendment to Salesforce's Restated Certificate of Incorporation was ratified, allowing for the exculpation of certain officers in accordance with Delaware law. This amendment simplifies the current provision relating to the company's directors. To implement the change, Salesforce filed a Certificate of Amendment and a Restated Certificate with the Secretary of State of Delaware on June 28, 2024, both of which took immediate effect.

The meeting also addressed the ratification of Ernst & Young LLP as Salesforce's independent auditor for the fiscal year ending January 31, 2025, which passed with substantial support. However, the advisory vote on the fiscal 2024 compensation of the company's named executive officers did not receive majority support, with approximately 404 million votes against.

Other stockholder proposals, including one for an independent chair of the board and another requesting stockholder approval of certain executive severance arrangements, were not approved. A proposal requesting a report on viewpoint restriction risks also did not pass.

In other recent news, Salesforce.com Inc (NYSE:CRM). reported an 11% year-over-year growth in its fiscal 2025 first-quarter earnings, with revenue reaching $9.13 billion. Despite economic challenges, the company maintained its full-year revenue guidance at $37.7 billion to $38 billion. The company's subscription and support segment saw a 12% rise, contributing significantly to the overall performance.

In relation to analyst ratings, BMO Capital Markets, Goldman Sachs, and Oppenheimer maintained their bullish stance on Salesforce. BMO Capital kept its Outperform rating with a price target of $265.00, while Goldman Sachs reiterated a Buy rating with a price target of $315. Oppenheimer maintained an Outperform rating with a steady price target of $280.00.

In other company developments, Salesforce introduced a new large language model benchmarking tool tailored for customer relationship management business cases and revealed a focus on a product slate heavy with generational artificial intelligence innovations. These advancements underscore Salesforce's commitment to providing value in the AI domain and its strategy to remain model-agnostic when it comes to Gen-AI models.

InvestingPro Insights

As Salesforce (NYSE:CRM) fortifies its corporate governance with recent stockholder decisions, it's also worth noting the company's financial robustness and market performance. With a market capitalization of $248.45 billion, Salesforce holds a significant position in the software industry. The company's gross profit margin impressively stands at 76.0%, reflecting its ability to maintain profitability despite the competitive landscape. Moreover, Salesforce has demonstrated a solid revenue growth of 11.04% over the last twelve months as of Q1 2023, underlining its capacity for expansion in a challenging market.

Investors considering Salesforce should note two key InvestingPro Tips: the company has a perfect Piotroski Score of 9, indicating strong financial health, and analysts have recognized Salesforce as a prominent player in the software industry. For those looking to delve deeper, InvestingPro offers additional insights; there are 11 more InvestingPro Tips available for Salesforce, which can be accessed by subscribing to the service. To enrich your investment strategy with these valuable tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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