Salesforce Appoints New Board Directors as Activist Investors Clamor for Change
Salesforce is conducting a major overhaul of its board, announcing the appointment of three new independent directors in response to moves by activist investors who want greater control of the cloud-based software company.
The new board appointments, effective March 1, 2023, include Arnold Donald, former president and chief executive officer of Carnival Corporation; Sachin Mehra, chief financial officer of Mastercard; and Mason Morfit, chief executive officer and chief investment officer of ValueAct Capital, an activist investor.
It is unclear if these appointments were due to pressure from $55bn hedge fund Elliott Management, which has reportedly taken a multi-billion dollar stake in the company.
Other activist investors taking a chunk of Salesforce include Starboard Value, which is run by Jeffery Smith, confirmed in October it had amassed a shareholding, ValueAct and Jeff Ubben’s Inclusive Capital.
Sanford Robertson and Alan Hassenfeld have notified the company that they do not intend to stand for re-election at Salesforce’s 2023 Annual Meeting of Stockholders.
The new appointments “demonstrates Salesforce’s commitment to ongoing refreshment in action,” said Robin Washington, lead independent director of the board.