Marc Benioff’s stature in San Francisco is on the rise, as Salesforce Tower, the city’s tallest building, nears completion.
But Benioff’s paycheck is getting smaller.
The CEO of Salesforce took a 60% paycut in the recently ended 2017 fiscal year, according to the company’s annual proxy report, filed on Wednesday.
Of course, Benioff still took hom $US13 million in total compensation for the year.
The 52-year-old founder of Salesforce’s pay package has been in investor sights for several years. At the company’s 2015 shareholder meeting, Salesforce’s executive compensation only passed with a relatively 52% of investor votes, and then only 60% in 2016.
After that first meeting, Salesforce says, it met with shareholders and put plans into place to reduce Benioff’s pay. In between those first two meetings, Benioff’s pay took a 16% from $US39.9 million to $US33.4 million. Then, he took the additional 60% dip from $US33.4 million to $US13 million.
Check out Salesforce’s chart of how Benioff’s pay has progressed, per the SEC filing:
“We listened to our stockholders, and taking their input into account, we reduced overall CEO pay in fiscal 2017 by 60% while expanding the use of PRSUs to our other senior executives,” Salesforce said in the filing, referring to performance based restricted stock units.
As part of Salesforce’s executive compensation reform, Benioff’s base salary stayed frozen at $US1.55 million from FY16 to FY17, and will stay that way for at least the next fiscal year. However, note from the chart that pay is now more closely tied to Salesforce’s corporate and financial performance.
Here’s the breakdown of how Benioff gets paid, also from the filing:
Finally, Benioff is losing out on one more thing: In 2015 alone, Salesforce spent about $US1.5 million on protecting Benioff. Under the company’s executive compensation reform plan, Salesforce won’t pay for Benioff’s personal security detail in this new fiscal year.