Salesforce employees are set to receive 70% of their annual "gratitude bonus" due to company's performance, CFO Amy Weaver and CPO Brent Hyder wrote to staff Friday in an email obtained by Fortune.
"As you heard from Marc during our recent earnings call, our profitability has improved in the last quarter of FY23. However, even with that success in Q4, we continued to face a measured buying environment and that affected new bookings," the two executives wrote to staff. "In short, we missed our internal FY23 bookings targets and therefore our annual financial results were, in aggregate, below target."
The annual gratitude bonus is calculated through several variables, one of which includes a metric Salesforce dubbed "corporate multiplier," according to a company document. The document states that the corporate multiplier is calculated based on bookings, customer attrition, and non-GAAP operating income. Last year, employees received 110% of their gratitude bonus, which is the cap for this metric, according to a source.
Salesforce employees receive two-thirds of their gratitude bonus in April and the last third in September, according to the company document Fortune viewed.
The bonus announcement comes two days after Salesforce delivered blockbuster quarterly earnings, with higher-than-expected adjusted profit margins, which sent the company's stock surging as much as 19%.
"While we're all disappointed that we didn't hit our internal goals, we look forward to achieving greater productivity, performance, and transformation together with you as One Salesforce in FY24," Weaver and Hyder wrote in Friday's note.
A Salesforce representative declined to comment.
