Srinivas Tallapragada

About Srinivas Tallapragada

President and Chief Engineering and Customer Success Officer at Salesforce (CRM), elevated in fiscal 2026 to integrate engineering with customer success, technical support, and professional services, leveraging 25+ years leading R&D teams and 13+ years at Salesforce driving product and platform evolution . He was a Named Executive Officer (NEO) in fiscal 2025 . Company performance under the executive team in FY2025: revenue $37.9B (+9% YoY), GAAP operating margin 19% (+460 bps YoY), operating cash flow $13.1B (+28%), free cash flow $12.4B (+31%), and Remaining Performance Obligation $63.4B (+11%) .

Past Roles

Organization	Role	Years	Strategic Impact
Salesforce	President & Chief Engineering and Customer Success Officer	2025–present	Integrates engineering with customer success, technical support, and professional services to drive Agentforce and deliver a unified platform

Fixed Compensation

Metric	FY2025	FY2026 (set in March 2025)
Base Salary ($)	$1,000,000	$1,100,000
Target Bonus (% of base)	150%	175%
Actual Bonus Paid ($)	$1,500,000 (100% of target)	—
All Other Compensation ($)	$12,428 (401k $5,000; other benefits $3,503; tax gross-ups $3,925)	—

Performance Compensation

Annual Bonus Design and Payout (FY2025)

Metric	Weighting	Target	Actual	Payout	Vesting
Financial performance metrics aligned to operating framework; ESG removed	100%	Pre-established Company financial goals	Company payout capped at 100%; formulaic result 102.8% before cap	100% of target ($1,500,000)	Cash in FY2025

Long-Term Equity Design (PRSUs and Options)

Component	Weighting	Key Performance Metric(s)	Target	Actual/Payout	Vesting
Operating Margin PRSUs (FY2025 award)	50%	Non-GAAP operating margin FY2025, FY2026, FY2027; payout scale: 0–200% (threshold ~85% of target; cap at 200%)	FY2025 target 32.5%	FY2025 actual 33.0% → 110% vesting achievement for FY2025 tranche; final payout is 3-year average	Cliff vest on/around March 22, 2027, subject to service
Relative TSR PRSUs (FY2025 award)	50%	TSR vs Nasdaq-100 over 3 years; target at 60th percentile; no payout above target if absolute TSR negative	60th percentile vs index at target	In progress (FY2025–FY2027)	Cliff vest on/around March 22, 2027, subject to service
Performance Stock Options (FY2026)	33% of FY2026 LTI value	Metric tied to Agentforce and Data Cloud strategy (new FY2026 feature)	Granted at $280.62 strike	In progress	Per award terms; performance-vesting

Equity Awards Granted (FY2025 and FY2026 targets)

Metric	FY2025	FY2026 Targets (Granted March 22, 2025)
Intended Target Equity Value ($)	$15,000,000 total: PRSUs $7,500,000; RSUs $7,500,000	$18,000,000 total: PRSUs $6,000,000; Performance Options $3,000,000; RSUs $9,000,000
FY2025 Grants – OM PRSUs (03/20/24, approved 04/08/23)	Threshold 949; Target 3,796; Max 7,592; Grant-date fair value $1,161,880	—
FY2025 Grants – OM PRSUs (03/22/24, approved 03/20/24)	Threshold 1,873; Target 7,494; Max 14,988; Grant-date fair value $2,306,428	—
FY2025 Grants – TSR PRSUs (03/22/24, approved 03/20/24)	Threshold 2,810; Target 11,241; Max 22,482; Grant-date fair value $4,672,209	—
FY2025 Grants – RSUs (03/22/24)	24,369 units; Grant-date fair value $7,500,047	—

PRSU payout scales (for both TSR and OM) range 0–200% of target; TSR target at 60th percentile; OM target at 100% of annual operating margin goal; threshold ~85% and maximum ~115% of target . FY2024 OM PRSUs tranches paid 185% (FY2024) and 119% (FY2025) toward the 3-year average, vesting on April 22, 2026 or March 22, 2027 per grant .

Equity Ownership & Alignment

Item	Detail
Beneficial Ownership	61,007 shares; <1% of class
Stock Ownership Guidelines (Executives)	3x base salary for executive officers; 10x for CEO; compliance required by March 27, 2030 or 5 years from appointment; current NEOs in compliance via holdings or defined compliance periods
Hedging/Pledging	Prohibited for executives and directors under Insider Trading Policy
Unvested RSUs (as of Jan 31, 2025)	16,068 units; Market value $5,490,436 (at $341.70/share)
Unearned PRSUs (FY2024 grants)	22,780 (TSR) $7,783,926; 15,188 (OM) $5,189,740; vesting April 22, 2026 subject to performance
Unearned PRSUs (FY2025 grants)	7,592 (OM FY2026 tranche) $2,594,186; 22,482 (TSR FY2025–FY2027) $7,682,099; 14,988 (OM FY2025–FY2026 tranches) $5,121,400; vesting March 22, 2027 subject to performance
Options Outstanding (Unexercisable)	4,397 @ $215.17 exp 03/22/2028; 31,486 @ $218.21 exp 03/22/2029
FY2025 Exercises/Vesting	Options exercised: 218,722 shares; value realized $27,424,744. Stock vested: 32,788 shares; value realized $9,190,282
RSU/Option Vesting Schedules	RSUs: 25% at 1-year anniversary; remaining quarterly over 36 months. Options: 25% at 1-year anniversary; remaining monthly over 36 months

Employment Terms

Provision	Terms
Employment status	At-will; standard NEO arrangements per company practice
Change-of-Control (double trigger)	If terminated without cause or resigns for good reason within 3 months before/18 months after CoC: lump sum 150% of base + target bonus; Company-paid health benefits up to 18 months; full acceleration of unvested equity (PRSUs determined per special CoC rules)
Potential Payments (Hypothetical as of Jan 31, 2025)	Change in Control (no termination): Accelerated equity $19,147,501 . Qualifying termination in connection with CoC: Salary+Bonus $3,750,000; Benefits $59,691; Accelerated equity $51,328,523; Total $55,138,223 . Death: special vesting of options/RSUs up to $5,000,000; PRSUs excluded
Clawback	Executive Officer Incentive Compensation Recovery Policy adopted in 2023 (recovers erroneously paid incentive comp after qualifying restatement)
Severance cash cap policy	No executive cash severance >2.99x salary+target bonus without stockholder approval (adopted March 2024)

Compensation Structure Notes (Alignment, Metrics, Trends)

Program changes post 2024 say-on-pay (45.6% support): refreshed peer group (removed mega-caps; added closer-size peers), capped CEO aircraft/security perqs, commitment to no off-cycle awards absent extraordinary circumstances, increased stock ownership requirements, enhanced disclosure and performance orientation including new FY2026 performance options tied to Agentforce/Data Cloud .
FY2025 NEO long-term mix: CEO 60% PRSUs/40% options; other NEOs 50% PRSUs with remainder in RSUs/options per role; Tallapragada’s FY2025 mix: PRSUs + RSUs (no options in FY2025), moving to include performance options in FY2026 .

Investment Implications

Pay-for-performance: OM PRSU design directly ties vesting to operating margin; FY2025 achieved 33.0% vs 32.5% target (110% vesting achievement for the year’s tranche), supporting alignment to profitable growth; TSR PRSUs demand 60th percentile outperformance vs Nasdaq-100 and cap above target if absolute TSR is negative .
Retention and role expansion: FY2026 increases to base ($1.1M) and target bonus (175%) plus $18M target LTI including performance options tied to Agentforce/Data Cloud signal retention of a key AI/engineering leader central to execution of Salesforce’s digital labor strategy .
Near-term selling pressure signals: FY2025 option exercises totaled 218,722 shares with $27.4M value realized, and 32,788 shares vested, which can create supply/delivery dynamics around vesting/exercise windows; PRSUs and RSUs represent sizable future delivery contingent on performance and service .
Governance and alignment: Prohibitions on hedging/pledging, stringent ownership guidelines (3x salary) and clawback policy mitigate misalignment risk; double-trigger CoC terms are standard, but accelerated equity can be material in change scenarios ($51.3M equity in CoC termination hypothetical) .
Execution risk: Role consolidates engineering and customer success to scale Agentforce; success depends on delivering margin expansion while ramping AI/Data Cloud ARR (noted $900M ARR, +120% YoY), making performance-linked equity sensitive to both operational and market outcomes .