Salesforce Isn't Giving Raises for Director Level and Above, Memo Shows
Business Insider • • business
Key Points:
- Salesforce will not offer base pay raises this year to employees at the director level and above, focusing merit increases on Senior Manager level and below, according to an internal HR email seen by Business Insider.
- Instead of raises, the company is increasing stock and bonus pools for top-performing senior employees as part of an investment in long-term growth and performance incentives.
- About 10% more directors and senior directors are receiving stock grants, with average grants increasing by 20% to 40% for those rated highly successful or exceptional, while bonus pools are funded at 103%, with top performers receiving up to 140% of their bonuses.
- This compensation shift reflects a broader trend in Big Tech to tie senior talent pay more to equity and stock performance rather than base salary increases, amid market pressures and declining software stock values.
- Salesforce recently laid off fewer than 1,000 employees and made leadership changes, promoting or hiring six new leaders to replace five departing executives around the start of its fiscal year on February 1.
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