Salesforce Reportedly Holding Back On Raises For Higher-Level Employees

• The company said it will instead increase stock and bonus pools for its “highest-performing individuals” in the tiers. 
• Employees will start learning about their compensation during performance reviews which are slated to begin March-end.
• As per the email, 10% more directors and senior directors are getting stock grants.

Cloud-based software company Salesforce (CRM) is reportedly not offering raises to higher level employees this year.

Business Insider reported on Wednesday, citing an internal email, that the company is not offering raises to employees at the director levels and above, instead increasing stock and bonus pools for its “highest-performing individuals” in the tiers.

The company reportedly called the move part of its “investment in performance and long-term growth.” Employees will start learning about their compensation during performance reviews which are slated to begin March-end.

"We have decided to focus merit increases at the Senior Manager level (grade 8) and below," the mail from Salesforce’s human resources team reportedly said.

As per the email, 10% more directors and senior directors are getting stock grants, and 80% of directors and senior directors who received "highly successful" or "exceptional" performance ratings received a 20% to 40% bigger grant.

The news comes on the heels of a sell-off in software-as-a-service company stocks earlier this year over fears of artificial intelligence tools rendering traditional seat-based software models obsolete.

CEO Marc Benioff in February told analysts that his company will outlast any so-called “SaaS-pocalypse”. However, the company forecast fiscal 2027 revenue below Wall Street expectations in the range of $45.80 billion to $46.20 billion.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CRM stock remained within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

CRM stock has dropped 37% over the past 12 months. 

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