Elliott nominates slate of directors to Salesforce board
Activist investor Elliott Management has nominated a slate of directors for Salesforce
’s board, sources told CNBC’s David Faber on Wednesday.
The nominating window closes March 14, and it is unclear if it is two or three nominees, Faber said on “Squawk on the Street.” The slate will likely include Jesse Cohn who runs the activist practice at Elliott, according to people familiar with the situation, but Faber said his position hasn’t been confirmed.
Activists have been circling the cloud-based business software company. Elliott Management unveiled its multibillion-dollar investment in Salesforce in January, and the company said ValueAct Capital CEO Mason Morfit will join its board this month. Dan Loeb’s hedge fund, Third Point, has also built a position in the company, CNBC confirmed in February.
Salesforce, which joined the Dow Jones Industrial Average in 2020, has faced high-profile departures and slowing revenue growth of late and dealt with criticism for buying companies such as Slack and Tableau at high multiples. In November, Salesforce gave weaker-than-expected quarterly revenue guidance.
On Jan. 4, Salesforce announced plans to cut 10% of its personnel and said it would reduce some office space as part of a restructuring plan. The company also let go of fewer than 1,000 employees in November.
Shares of Salesforce underperformed in 2022, declining almost 48% while the S&P 500 fell 19%. The stock is up about 24% so far this year.
The company is scheduled to report its fourth-quarter earnings after market close Wednesday. CNBC
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