Activist investor Elliott Investment Management will not proceed with plans to nominate its own directors to Salesforce’s board, citing improved performance and a “clearer focus on value creation” from the enterprise software company.
Elliott is one of five activist investors within Salesforce’s ranks, after he bought a multimillion-dollar stake in the company earlier this year. Ahead of Salesforce’s recent fourth-quarter earnings, Elliott announced that he was pushing several of his own candidates onto the board after a turbulent 2022 for Salesforce, but after a return to financial form for Salesforce, beating growth forecasts. and announcing more shareholder returns, it seems that this has been enough to convince Elliott that Salesforce has corrected course.
in a joint statement todayThe companies said that in light of Salesforce’s recently announced “profitable growth framework” dubbed “New day”, coupled with his strong fiscal year 2023 and a host of additional “transformation initiatives”, Elliott will not be seeking his directorial nominations.
“I have great respect for Marc [Salesforce co-founder and CEO Marc Benioff] and his team, and I have been deeply impressed by their continued strong commitment to profitable growth, responsible return on capital and an ambitious plan to create shareholder value,” Elliott Managing Partner Jesse Cohn said in a statement from Elliott. press.
