Salesforce issues equity awards to new hires from acquisitions

SAN FRANCISCO - Salesforce (NYSE: CRM), a prominent player in the software industry with a market capitalization of $284 billion, has recently granted equity awards to new employees who were brought on board following the acquisitions of Own Company and Zoomin. The awards were issued under Salesforce’s 2014 Inducement Equity Incentive Plan, which aligns with New York Stock Exchange Rule 303A.08. According to InvestingPro, the company maintains impressive gross profit margins of 77%.

The company has allocated a total of 95,777 restricted stock units (RSUs) to 218 employees from the two acquired companies. Specifically, 201 employees from Own Company and 17 from Zoomin were recipients of these equity awards. The RSUs are set to vest over a period of four years, with one-quarter of the units vesting on the first anniversary of the grant date. The remaining shares will vest in 12 equal quarterly installments, contingent upon the employees’ continued service through each vesting date.

The recipients of the RSUs are all non-executive officers. This move is part of Salesforce’s strategy to integrate new talent from its acquisitions and incentivize their long-term commitment to the company.

Salesforce is recognized for its innovative AI solutions that help organizations of various sizes to transform their business operations. The company’s offerings include Agentforce, a digital labor solution that integrates with Customer 360 applications, Data Cloud, and Einstein AI, aiming to enhance workforce capabilities and customer success on a unified platform.

This information is based on a press release statement from Salesforce.

In other recent news, Salesforce.com (NYSE:CRM) has released its fourth-quarter results, showing an 11% growth in current remaining performance obligations, slightly surpassing company guidance. This performance has led TD Cowen to maintain a Buy rating with a price target of $375, despite noting a cautious subscription growth forecast for fiscal year 2026. Meanwhile, BMO Capital Markets has adjusted its price target for Salesforce to $367, down from $375, while retaining an Outperform rating. BMO highlighted Salesforce’s solid earnings, noting that calculated billings and free cash flow exceeded expectations, though subscription revenue growth fell short.

Truist Securities has upheld a Buy rating with a $400 price target, emphasizing Salesforce’s strong fourth-quarter performance and the 120% increase in Data Cloud and AI annual recurring revenue. Piper Sandler has also adjusted its price target to $400, citing a growth reset but maintaining an Overweight rating due to potential AI monetization opportunities. Scotiabank (TSX:BNS) reduced its price target from $440 to $400, retaining a Sector Outperform rating, and pointed out the significant growth in Data Cloud and AI annual recurring revenue.

Salesforce’s strategic focus on expanding its sales force and improving productivity is expected to drive growth, with plans to repurpose support agents and expand the sales team. The company has projected a 100 basis point non-GAAP operating margin expansion to 34%. These developments highlight Salesforce’s ongoing efforts to strengthen its market position and capitalize on growth opportunities in AI and cloud services.

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