![]() ![]() ![]() Now, Salesforce may want to follow through and make sure its expensive real estate actually gets used.Īnother change that Walravens thinks could be in the cards is a revamping of compensation, particularly for executives. While the company has downsized some of its office space as the tech market turns down, it still has a lot.įor some context, Benioff himself has indicated some willingness to bring employees back to the office: He recently faced backlash inside the company after suggesting that remote work may be responsible for lower productivity among employees hired during the pandemic years. Those offices are now sitting largely empty as the company embraced remote work during the pandemic. The company has invested a lot in a global real estate footprint including its Salesforce Tower headquarters in San Francisco. Walravens says that the activist firms could encourage Salesforce to rethink its office strategy. Salesforce could return to the office and revamp executive compensationĮlliott and Starboard could also push for relatively smaller, but no less meaningful changes, too. However, it thinks that some acquisitions like MuleSoft, ClickSoftware, or Heroku would turn a profit if they were to be sold off, while minimizing disruptions to the business. However, Salesforce likely wouldn't get the full amount it paid for Slack if it sold it under current market conditions, RBC notes. It continued: "One way to still extract value from assets we view as non-core is through divestiture." ![]() "Salesforce has been in 'empire building' mode for too long and should focus more on its core market opportunities," RBC analysts wrote in a note to clients this week. In the wake of Taylor's departure, some believe the involvement of the activist investors may push Salesforce towards recouping some of that investment by selling off those businesses. Many of those acquisitions, particularly Slack, were masterminded by Bret Taylor - the former co-CEO of Salesforce who stepped down in a surprise move late last year. Salesforce has been criticized for the sky-high $27.7 billion it paid for workplace messaging app Slack, especially since that deal came so soon after the sizable acquisitions of companies like data analysis firm Tableau and data integration company MuleSoft. Some want Salesforce to sell Slack and Tableau "I think there's pretty broad agreement that the board of directors needs to be refreshed," Walravens said. That's not necessarily a bad thing, he said: Five members of Salesforce's board members, including Benioff himself, have held their seats for fifteen years Walravens believes that they could target those old hands and try to bring in some fresh blood with new ideas for the company. JMP Securities analyst Pat Walravens tells Insider that Elliott and Starboard could take advantage of the situation by mustering the support to replace many or most of those board seats with their own candidates at this year's upcoming meeting. Salesforce, unlike many other tech companies, only appoints its board members to serve for one-year terms, meaning they have to be reelected by shareholders every single year. It could even result in Salesforce ending its remote-work policies and mandating at least some employees to come back into the office, analysts speculate. And if that wasn't enough, some analysts believe that these activist firms could push Benioff to at least explore the possibility of divesting mega-acquisitions like Slack, MuleSoft, and Tableau. It's a very real possibility that these investors could oust most, if not all, of Salesforce's board of directors in one go. Account icon An icon in the shape of a person's head and shoulders. ![]()
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