Activist Investor Elliott Management Names Candidates For Salesforce Board: What You Need To Know

Activist Elliott Management on Wednesday nominated multiple directors for board seats at Salesforce Inc CRM.

What To Know: According to CNBC, the activist investor named a slate of directors for Salesforce's board two weeks before the window for nomination closes on March 14.

It's not clear if the firm has nominated two or three individuals, but managing partner Jesse Cohn is expected to be among the nominees.

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Salesforce announced plans to cut about 10% of employees and close down select offices in order to help manage costs at the start of the year.

In late January, Salesforce shares surged after Elliott Management took a multi-billion dollar stake in the cloud software company.

"Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built," Cohn said at the time.

"We look forward to working constructively with Salesforce to realize the value befitting a company of its stature."

Elliott Management isn't the only activist with a stake in Salesforce. Starboard Value, ValueAct Capital Partners, Inclusive Capital and Third Point are among the other firms involved in a potential turnaround. 

Salesforce underperformed broader markets in 2022 and near the end of the year, former co-CEO Bret Taylor left the company just one year after he took the job. Benioff described it as a "gut punch" shortly after the news made headlines. "You can't keep a wild tiger in a cage," he added.

Wedbush analyst Dan Ives called it a "shock to the system" as the management change sparked a 10% drop in shares.

In the company's most recent earnings report, Salesforce guided for fourth-quarter revenue growth between 8% and 10%, down from 14% sequentially. The cloud company is set to report its fourth-quarter results after the bell.

CRM Price Action: Salesforce has a 52-week high of $222.15 and a 52-week low of $126.34. 

The stock was up 0.81% at $164.93 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Salesforce.