Salesforce (CRM) Announces New Executive Deferred Compensation Plan
Compensation Committee Approves Plan Allowing Eligible Employees to Defer Up to 90% of Performance Bonuses
GuruFocus News
09/04/2026 15:30
Salesforce, Inc. CRM disclosed in a recent SEC Form 8-K filing that its Compensation Committee approved the Salesforce, Inc. Executive Deferred Compensation Plan on September 2, 2026. The new plan permits executive officers and other eligible employees to voluntarily defer a portion of their compensation, with the company’s obligations under the plan representing general unsecured and unfunded promises to pay deferred compensation in the future.
Under the terms of the plan, participants may elect to defer up to 75% of their base salary and up to 90% of any annual performance bonus. Participants will have the flexibility to make individual investment elections for their plan accounts, choosing from various notional investment options designated by the plan administrator. Notably, the plan does not include an employer match or similar contribution, although Salesforce retains the discretion to make additional contributions from time to time.
Distribution options under the plan allow participants to receive their deferred compensation in either lump sum or installment payments. The timing of these payments will depend on the participant’s specific distribution election, including choices related to separation from service or payment on designated future dates.
To support the plan’s benefit obligations, Salesforce may establish and contribute to a rabbi trust. However, any assets held in such a trust would remain subject to the claims of the company’s general creditors in the event of insolvency, maintaining the plan’s unfunded status for tax purposes.
The plan will be administered by the Compensation Committee, which holds authority to establish, amend, interpret, and enforce rules and regulations for plan administration. While Salesforce may terminate the plan at any time and the Committee may amend it periodically, no amendment can reduce the accrued value of a participant’s account that existed prior to such amendment.
The company has indicated it intends to file the complete plan document as an exhibit to its next Quarterly Report on Form 10-Q. This executive benefit arrangement reflects Salesforce’s ongoing efforts to provide competitive compensation structures for its leadership team while managing corporate cash flow through deferred payment obligations.
GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $339.05 (23.5% undervalued); its GF Score™ is 90/100; 19 gurus currently hold the stock, with 9 adding and 9 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Salesforce IncCRM research.
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