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Salesforce entices ExactTarget execs with $20M in awards

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Salesforce.com has extended job offers to ExactTarget Inc.'s top brass—and sweetened the pot by dangling awards of restricted stock topping $20 million.

Salesforce disclosed the offers to four ExactTarget executives in a filing late Wednesday afternoon with the Securities and Exchange Commission. Under the proposed employment agreements, Scott Dorsey would remain CEO of ExactTarget, Scott McCorkle would remain president of technology and strategy, Andrew Kofoid would remain chief operating officer and Timothy Kopp would remain chief marketing officer.

Dorsey is slated to receive the largest restricted stock award, $7.5 million. McCorkle and Kofoid would receive $5.5 million, and Kopp would get $1.75 million. The awards would vest over four years.

The filing does mention two other ExactTarget senior executives, Chief Financial Officer Steven Collins and Chief Administrative Officer Traci Dolan. A Salesforce spokeswoman would not comment on the omission.

ExactTarget will remain an independent subsidiary of Salesforce, which on June 4 announced plans to buy the Indianapolis marketing software firm for $33.75 per share—a 53-percent premium over the previous day. Salesforce says in a new filing that the cash deal is valued at $2.6 billion, a shade more than it said when the deal was announced.

Dorsey wrote in a memo to employees the day after that announcement that he intended to stay with ExactTarget and would be reporting directly to Salesforce's CEO Marc Benioff. He said Salesforce intends to invest in the local operations. About 1,000 people work in Indianapolis with another 700 in other states.

Earlier SEC filings show ExactTarget’s top six executives collectively stand to gain $92.5 million on their stock options when the deal closes.

The windfall represents nearly one-third of the nearly $300 million in option gains that ExactTarget's employees will collect.

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  • bye bye
    SalesForce is saying all of the right things now, but within five years, ExactTarget staff will be told that, to stay in the fold, the ones that have not been let go must move from Indianapolis to the new headquarters in San Francisco (following the trail of Jim Jones). This city will lose a thousand good salaries. ET management won't care -- they got theirs.
  • Sounds like a plan
    Minions under the CAO and CFO likely offered retention bonus' so thy know their fate if they are offered any. If not offered any... they should be shopping themselves now. CAO and CFO likely already have contracts and KNOW their fate and related $$ on the way out.
  • Not a good sign
    Not a good sign for employees in the administrative and financial functions when the chief administrative officer and chief financial officer are not offered an incentive to stay and manage their respective teams of people...of which there are hundreds that are being counted on to manage the transition of financial and employee records.

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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