Elliott Statement on Salesforce

Rhea-AI Summary

Elliott Investment Management, a top investor in Salesforce (NYSE: CRM), has issued a statement emphasizing recent strides by the company towards rebuilding investor trust.

Key announcements include accelerated margin targets, a commitment to responsible capital return, and the establishment of a business transformation committee while disbanding the M&A committee. Elliott acknowledges Salesforce's progress but stresses the need for a sustainable leadership plan and board accountability to regain full investor confidence. Elliott plans to maintain engagement with Salesforce to ensure optimal outcomes for the company.

AI-generated analysis. Not financial advice.

Positive

• Acceleration of margin targets indicates improving financial health.
• Commitment to responsible capital-return priorities supports investor confidence.
• Establishment of a business transformation committee shows commitment to operational improvements.

Negative

• Need for a sustainable leadership plan suggests current instability.
• Lack of a clear accountability strategy in the board could hinder investor trust.

News Market Reaction – CRM

+11.50%

1 alert

+11.50% News Effect

On the day this news was published, CRM gained 11.50%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

WEST PALM BEACH, Fla., March 1, 2023 /PRNewswire/ -- Elliott Investment Management L.P. (together with its affiliates, "Elliott") today released the following statement on behalf of Managing Partner Jesse Cohn and Senior Portfolio Manager Jason Genrich regarding Salesforce, Inc. (NYSE: CRM) (the "Company" or "Salesforce"):

Elliott has been in close, substantive dialogue with Salesforce leading up to today's earnings statement. Salesforce's set of announcements today represents progress towards regaining investor trust. The acceleration of margin targets, commitment to responsible capital-return priorities, creation of a business transformation committee and disbanding of the M&A committee are necessary steps forward. These steps are consistent with our recommendations, and we believe they will help restore value at Salesforce.

The strength of Salesforce's business and its movement in the right direction are key reasons we are among the company's top investors, but much work remains: Salesforce needs a sustainable leadership plan and a board that demonstrates it can provide accountability through proper oversight. To fully earn back the confidence and support of investors, Salesforce leadership must now deliver on its promises. Elliott intends to continue working with Salesforce as we evaluate the level of engagement necessary to achieve the best outcome for the company.

About Elliott

Elliott Investment Management L.P. manages more than $55 billion of assets. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

Media Contact:         

Casey Friedman                                                         
Elliott Investment Management L.P.                                     
(212) 478-1780                                              
cfriedman@elliottmgmt.com

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SOURCE Elliott Investment Management L.P.

FAQ

What did Elliott Investment Management say about Salesforce on March 1, 2023?

Elliott highlighted Salesforce's progress in regaining investor trust and outlined key improvements such as accelerated margin targets and a new business transformation committee.

What are the key announcements made by Salesforce according to Elliott?

Elliott noted Salesforce's accelerated margin targets, commitment to responsible capital return, and the establishment of a business transformation committee.

How does Elliott view the current leadership of Salesforce?

Elliott stresses the need for a sustainable leadership plan and board accountability to restore full investor confidence in Salesforce.

Is Elliott planning to continue working with Salesforce?

Yes, Elliott intends to continue engaging with Salesforce to achieve the best outcomes for the company.