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Marc Benioff's 2023 to-do list after his co-CEO's shocking departure

 1 year ago
source link: https://finance.yahoo.com/news/marc-benioffs-2023-list-co-222148347.html
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Marc Benioff's 2023 to-do list after his co-CEO's shocking departure

Paayal Zaveri
Fri, December 2, 2022, 7:21 AM·4 min read
Marc Benioff Salesforce
Marc Benioff, Salesforce CEO & cofounderSalesforce
  • Salesforce is seeing it's co-CEO Bret Taylor depart and facing slowing revenue growth.

  • The combo has some investors spooked about the CRM giant's future, especially going into Q4.

  • Here's what they are worried about and what analysts think Salesforce needs to do.

With co-CEO Bret Taylor's sudden departure and a waning growth rate, investors are worried about the future of Salesforce, the $147 billion CRM giant.

Salesforce's stock is down up to 10% today. While earnings beat analyst expectations, it also revealed the slowest revenue growth in the past two years, at 14%. It may not be surprising given the economic environment, but investors are worried about Salesforce's ability to meet its growth targets for the year.

Additionally, as Insider reported, Taylor's departure from the company blindsided many employees and surprised many top leaders — including cofounder and now sole CEO Marc Benioff. Taylor is set to leave at the end of January, the end of Salesforce's fiscal year.

Taylor was seen as Benioff's likely successor and the next chief executive of the company, and his appointment to the co-CEO role seemed to cement that. His departure throws those succession plans into flux.

Taylor leaving adds "further uncertainty during times when stability is critical," analysts at Bernstein wrote in a note to clients. "Not a good mix and investors must be wondering if the wheels are falling off."

Here are the things Benioff will need to tackle in 2023:

Figure out who will lead Salesforce

With Taylor out as Benieoff's successor, there are open questions about who Benioff will bring into the executive team now.

Two other execs are leaving as well. Gavin Patterson, Salesforce's chief strategy officer and previously chief revenue officer, is set to depart at the end of January. And on Thursday, Mark Nelson, CEO of the Salesforce-owned company Tableau, announced he would be leaving Salesforce as well. While experienced execs remain on Benioff's leadership team, like CFO Amy Weaver and COO Brian Millham, analysts think Benioff needs to recruit new leadership.


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