Salesforce, Inc. · NYSE:CRM
Salesforce — Salesforce COM — Shareholder Meeting (May 2019)
20 slides from Salesforce's shareholder meeting presentation, May 20, 2019
Slide 1: Salesforce Proxy Supplement May 17, 2019
Salesforce Proxy Supplement May 17, 2019Salesforce Proxy Supplement May 17, 2019
Slide 2: 2019 Proxy Statement Highlights
2019 Proxy Statement Highlights Additional disclosure on FY20 Co‐CEO compensation showing that aggregate compensation is not expected to increase compared to prior year due to the new Co‐CEO model. Presented FY20 equity grants in cash value rather than absolute share numbers for simpler comparison.
Slide 3: Company Overview
Company Overview The global leader in customer relationship management (CRM) technology Foundedin 1999, public listing in 2004 (NYSE: CRM). 1 #1 CRM provider for the sixth year in a row. Fastest growing top five enterprise software company with $13.28B in revenue FY19 (+26% Y/Y). Doubled operating c
Slide 4: Customer Success Platform
Customer Success Platform Connect to your customers in a whole new way 3Customer Success Platform Connect to your customers in a whole new way 3
Slide 5: Salesforce. #1 in CRM
Salesforce. #1 in CRM Worldwide CRM applications 2018 revenue market share by IDC 16.8% 5.7% 5.6% 3.5% 3.4% 2014 2015 2016 2017 2018 Source: IDC, Worldwide Semiannual Software Tracker, April 2019. CRM market includes the following IDC‐defined functional markets: Sales Force Productivity and Manageme
Slide 6: FY19 Financial Results
FY19 Financial Results Consistent top‐line revenue and cash flow growth 26% Operating Cash Flow $13,282 M Revenue CAGR 27% $3,398M CAGR $10,540 M $2,738M $8,437 M $2,162M $6,667 M $1,672M 17.1% 16.5% 15.0% 12.4% 4.3% 4.0% 2.6% 1.7% 11 1 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 2 GAAP Op Margin NG Op
Slide 7: Return to Stockholders
Return to Stockholders Salesforce has a track record of delivering significant total stockholder returns $300 Five‐Year Cumulative Total Return Salesforce: $251 $250 Nasdaq Computer: $212 $200 Nasdaq 100: $196 S&P 500 Index: $152 $150 $100 $50 $0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 6Retu
Slide 8: Board of Directors
Board of Directors Ongoing and proactive board refreshment Diverse and Dynamic Experience Average tenure 10 Public Company Board 9 (years): Marc Benioff Keith Block Parker Craig Alan Neelie Colin 8 International (Co‐CEO) (Co‐CEO) Harris Conway Hassenfeld Kroes Powell 8 Entrepreneurship/VC New direct
Slide 9: Compensation Program Framework
Compensation Program Framework Align executive compensation with the interests of our stockholders Objective: Attract and retain the right talent to lead our Company in a dynamic, innovative and competitive environment Philosophy: Tie a significant portion of compensation to the performance of our c
Slide 10: Co-CEO Compensation ($M)
Co‐CEO Compensation ($M) Salesforce did not fill the COO role upon Keith Block’s promotion to Co‐CEO FY19 grant reflects FY18 performance and 16‐month $52.4 period between grants (FY 2019 equity grants cover a period of 1.33 years versus the typical period of one year). $45.7 $45.4 $12.5 $12.3 $17.0
Slide 11: Co-CEO Compensation
Co‐CEO Compensation FY20 estimated Co‐CEO compensation consistent with FY19 ($M) $52.4 $45.7 $45.4 $45.2 $12.5 $17.0 $12.3 $19.3 $25.7 $39.9 $12.5 $33.4 $28.4 $25.9 $7.0 $13.2 $2.3 $4.7 1 FY15 FY16 FY17 FY18 FY19 FY20E Benioff Compensation Block Compensation 1 CEO compensation is significantly lower
Slide 12: Management Proposal: Amend 2013 Equity Incentive Plan
Management Proposal: Amend 2013 Equity Incentive Plan Increases the share pool under our 2013 Equity Incentive Plan by 35.5 million shares The Board recommends a vote FOR amendment and restatement of the 2013 Equity Incentive Plan to increase the number of shares reserved for issuance. ü Seeking sto
Slide 13: Management Proposal: Amend Certificate of Incorporation
Management Proposal: Amend Certificate of Incorporation Amendment eliminates supermajority voting standards The Board recommends a vote FOR amendment and restatement of the Certificate to eliminate the supermajority voting provisions from the Certificate. ü Seeking stockholder approval of charter am
Slide 14: Environmental/Sustainability Practices
Environmental/Sustainability Practices FY19 highlights continued commitment to creating a sustainable future for all Salesforce Leads the Step Up Declaration • Company made new commitments to drive climate action targeting: o All major new office interiors to align with LEED Platinum v4 after 2020.
Slide 15: Social Practices
Social Practices Culture is a business imperative with real ROI Ongoing initiatives to promote equality • Since FY17, Salesforce has committed $10.3 million to provide equal pay for equal work. • 12 employee‐led and founded “Ohana Groups” which provide communities for underrepresented groups and the
Slide 16: Governance Practices
Governance Practices Support our values of trust, customer success, innovation and equality Establish policies consistent with business ethics and corporate governance requirements • A substantial majority of our board members are independent of Salesforce and its management. • All members of our ke
Slide 17: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward‐looking statements, the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results
Slide 18: Appendix Non-GAAP Financial Measures
Appendix Non‐GAAP Financial Measures 17Appendix Non‐GAAP Financial Measures 17
Slide 19: Non-GAAP Financial Measures
Non‐GAAP Financial Measures This presentation includes information about non‐GAAP income from operations (“non‐GAAP financial measures”). These non‐GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles
Slide 20: thank you
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