The reason? Oh, the usual! Salesforce Chief Executive Officer Marc Benioff saw his compensation reduced by about 60% after shareholder criticism spurred these changes.
Apparently, shareholders were less than pleased with his pay package, and expressed their concerns.
As a result of which, the board cut Benioff’s total compensation to $13.2 million in the fiscal year that ended January 31. This figures are down from the $33.4 million the Salesforce CEO had received a year earlier.
All this was revealed in a regulatory filing on Wednesday, and confirm a much steeper decline than his pay cut in the 2016 fiscal year that came in at 16%.
This is what the compensation committee said in the filing:
“After the 2016 meeting, we sought additional feedback from our stockholders. The two main themes we heard were that, notwithstanding recognition of the enormous contributions and leadership provided by our CEO, the overall magnitude of CEO pay remained high, and that it would be beneficial to expand the use of performance-related stock units for Benioff and other executives.”
Despite these pay cuts, Benioff remains one of the wealthiest executives in the Silicon Valley, with a net worth of around $4.2 billion, owning roughly 5% shares of the firm he co-founded. The company’s shares have gained 11% in the past year.
His annual salary as CEO, meanwhile, has remained at the $1.55 million mark these past two years.