The Zhitong Finance App learned that CRM.US (CRM.US) will hold an annual shareholders' meeting on June 27 (Thursday) at 2:00 p.m. EST. At that time, investors will vote on executive compensation, board re-election, reinstatement of employee incentive plans, and investor rights protection proposals. This shareholders' meeting may also provide an opportunity for the company's management to reassure investors that the company is expected to benefit in the age of artificial intelligence. Currently, the customer relationship management provider is facing a challenging macro environment, and investors are worried that its growth will slow.

1. Executive remuneration

Saifushi shareholders will vote on compensation plans for executives, including CEO Marc Benioff. The company reported that Marc Benioff's total compensation for the 2024 fiscal year was US$39.65 million, an increase of more than 32% over the previous fiscal year. According to reports, Marc Benioff has the highest salary among SAFTSE executives, followed by Chief Operating Officer Brian Millham, whose salary exceeds 16.4 million US dollars.

Just a few weeks ago, Tesla (TSLA.US) shareholders approved CEO Elon Musk's nearly $56 billion compensation plan, putting executive compensation in the spotlight.

2. Board re-election, employee incentive plan, etc.

The 13 current directors of SAFTSE, including Marc Benioff, will face re-election. Additionally, shareholders will vote again on an equity incentive plan that was first passed in 2013. The plan will increase the number of shares reserved for 36 million shares and extend the program period. The company reported that as of the end of March, approximately 94% of outstanding equity awards were held by employees other than executives or directors.

Shareholders will also vote to approve an amendment to update some executives' liability exemptions in accordance with recent legal changes in Delaware, where the company is registered.

3. Investor proposals for rights protection

According to a letter of attorney submitted to the US Securities and Exchange Commission (SEC), rights investors have submitted three shareholder proposals. Among them, the non-profit organization US National Legal and Policy Center (National Legal and Policy Center) proposed that two people serve as the chairman of the company's board of directors and CEO respectively. Currently, Marc Benioff holds both positions.

The organization also requested that a board evaluation report be submitted within next year to assess “how the company monitors the risks associated with refusing or limiting the provision of services to users or customers due to their opinions being classified as 'hate speech', 'misinformation', or other related terms” and “how such risks affect the company's business and the constitutionally protected civil rights of users or customers.”

Additionally, investor John Chevedden introduced a “policy to seek shareholders' approval of new or updated compensation plans for senior management.” According to the policy, the estimated value of the “golden parachute” (financial compensation received by senior management due to changes in control of the company, such as termination fees, stock options, etc.) exceeds 2.99 times the sum of the executive's basic salary plus the target short-term bonus.

Shareholders will vote to approve or reject these proposals. Safez, on the other hand, advised investors to vote against all three proposals. According to reports, Marc Benioff and SAFTSE often face scrutiny from rights protection investors.

4. Growth prospects are worrying. How can companies ride the AI wave?

At the end of May, Saifushi announced its results for the first quarter of the 2025 fiscal year. According to financial reports, the company's first-quarter revenue increased 10.7% year-on-year to US$9.13 billion, falling short of market expectations of US$9.15 billion; adjusted earnings per share were US$2.44, higher than market expectations of US$2.34. However, the company said it expects second-quarter revenue to grow 8% to US$9.25 billion, which will be the first single-digit percentage quarterly revenue increase in the nearly 20 years since SAFTSE went public. This has heightened market concerns about the company's ability to stay ahead as the industry shifts to artificial intelligence tools.

Safran recently redoubled its focus on artificial intelligence as a growth opportunity and announced plans to open its first AI center in London in early June. The company says it will be well positioned in the age of artificial intelligence. The company's management will use this shareholders' meeting to allay investors' concerns about slowing growth and highlight the opportunities presented by artificial intelligence.