Salesforce has told its most senior employees they will not be getting salary hikes this year. An internal email reviewed by Business Insider confirms that merit increases are being reserved for those at the senior manager level and below—meaning anyone holding a director title or higher is out of the running for a raise. What they will get instead is more stock and fatter bonuses, but only if their performance ratings hold up. The company calls the move an investment in “long-term growth,” which is the kind of phrasing that tends to land differently depending on which side of the director line you sit on.
Top performers among directors can expect stock grants up to 40% larger and bonuses up to 140%
The specifics are worth looking at. According to Business Insider, 10% more directors and senior directors are receiving stock grants this cycle, and the average grant size has gone up. Among those rated “highly successful” or “exceptional,” 80% got grants that were 20% to 40% larger than before. The bonus pool is funded at 103%, with most eligible employees at or above their target payout—and top-rated employees taking home anywhere between 115% and 140% of their bonus.
The catch: Salesforce stock has fallen nearly 37% over the past year
This is all happening against a difficult backdrop. Salesforce stock is down roughly 37% over the past year, which makes equity-heavy compensation a harder sell. The company also trimmed fewer than 1,000 roles at the start of its new fiscal year in February—cuts that touched marketing, product, and data analytics—and has been dealing with a wave of senior executive departures since December, filling five high-profile exits with six new appointments.The underlying logic is straightforward: fixed salaries compound, stock and bonuses don’t. By shifting the reward structure upward and tying it to performance ratings, Salesforce preserves cash while still giving its senior layers something to chase. Whether that lands as motivation or frustration will probably depend on how the stock moves from here. Employees will find out exactly where they stand when performance reviews kick off at the end of March.
