Activist investor Elliott Investment Management won’t be proceeding with plans to nominate 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, announcing ahead of Salesforce’s recent Q4 earnings that it was pushing several of its own candidates toward the Salesforce board after a turbulent 2022 for the company. However, after a return to financial form at the start of this month, beating growth forecasts and announcing more shareholder return, it seems this has been enough to convince Elliott that Salesforce has corrected course.
In a joint statement today, the companies said that in light of Salesforce’s recently announced “profitable growth framework” dubbed “New Day,” alongside its strong fiscal year 2023 and a slew of of additional “transformation initiatives,” Elliott won’t pursue its director nominations.
“I have great respect for Marc [Salesforce co-founder and CEO Marc Benioff] and his team, and I have become deeply impressed by their strong ongoing commitment to profitable growth, responsible capital return and an ambitious shareholder value creation plan,” Elliott managing partner Jesse Cohn noted in a press release.