Salesforce Skips Pay Hikes for Senior Staff, Shifts Focus to Stock Rewards and Bonuses

Salesforce has decided not to offer salary increases this year to employees at the director level and above, instead prioritising merit-based pay raises for senior managers and below. Details of compensation changes are expected to be shared during performance reviews beginning at the end of March.
For senior-level employees, the company is placing greater emphasis on stock-based compensation and performance bonuses. Salesforce has expanded its stock grant programme, with 10% more directors and senior directors receiving equity grants compared to last year. The average grant size has also increased, with top performers rated “highly successful” or “exceptional” receiving grants that are 20% to 40% higher.
Bonuses have also seen an uptick. The bonus pool has been funded at 103%, resulting in most eligible directors and senior directors receiving their full bonus or more. High-performing employees were awarded between 115% and 140% of their target bonus.
The shift reflects Salesforce’s strategy to reward performance while encouraging long-term alignment through equity rather than fixed salary increases at senior levels. Stock-based compensation links rewards to company performance, although this comes amid a period in which Salesforce’s stock has declined by approximately 37% over the past year.
The downturn has been associated with broader industry concerns around the impact of artificial intelligence on entry-level technology roles and potential changes in the software-as-a-service (SaaS) landscape. Despite these concerns, Salesforce leadership has indicated that AI is expected to enhance SaaS offerings rather than disrupt them.
By focusing on equity and performance-driven incentives, the company is signalling a shift in how it approaches compensation for senior talent while continuing to invest in broader organisational growth.

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