Mar 1, 2023 - Economy

Elliott applauds Salesforce numbers and signals more progress needed

Photo illustration of Paul Singer and Marc Benioff.

Photo illustration: Shoshana Gordon/Axios. Photos: Stefan Wermuth/Bloomberg, Jonathan Moscrop/Getty Image

Elliott Management's statement on Salesforce (NYSE: CRM) late Wednesday applauded the company's progress but is not yet backing down from its campaign for changes.

Driving the news: Salesforce's strong earnings report and guidance alleviated some pressure, but Elliott's response made clear that it expects more issues need to be addressed before the activist believes the $167 billion company is on the right track.

  • Elliott made clear that despite Salesforce accelerating its margin targets, hiking its stock buyback plan, and conveying other signs of progress, the hedge fund does not have confidence in certain board members.
  • "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," said Elliott's statement, which was posted by managing partner Jesse Cohn.
  • "Salesforce needs a sustainable leadership plan and a board that demonstrates it can provide accountability through proper oversight," Elliott said.

Catch up quick: Elliott notified Salesforce within the last few weeks that it is officially running a slate of directors to replace existing board members, Axios reported earlier on Wednesday.

What we're watching: Where Salesforce and Elliott's dialogue goes from here and whether Salesforce announces additional moves, including new directors, to bring a peaceful resolution.

Go deeper: Salesforce's hedge fund hotel fills up amid Elliott pressure

Go deeper