^{Are Cartier watches and Aston Martins the new office pizza parties? Today’s topic is corporate gift-giving during a recession, inspired by a recent article by Business Insider that has sparked quite the debate around the ethics of extravagant corporate gifting.}

The Pulse Results (24 Votes) 📈

Side A 62% - Salesforce is properly rewarding key players

Side B 37% - Salesforce is creating a toxic work environment

^{Poll closed: May 10, 2023}

Salesforce CEO Marc Benioff gave executives lavish gifts including a $90,000 Cartier watch and an Aston Martin car

Published on: May 1, 2023
Published by: Business Insider

Well, well, well, it looks like SaaS giant, Salesforce, has a habit of buying some seriously boujee presents for their executives and founding members. We're talking luxury vehicles and watches that most of us can only dream of!

According to the Business Insider article, Salesforce, has a history of purchasing lavish gifts for their executives and founding members that dates back to as far as 2015.

Recently, CEO Marc Benioff gifted his executives extravagant presents, such as Cartier watches and an Aston Martin car. This comes at a controversial time, as the company laid off approximately 1000 employees in 2020 and approximately 8000 more employees in 2023.

But while some are oohing and aahing over these lavish gifts, others are raising an eyebrow. Critics argue that such displays of wealth create an unhealthy culture of greed and entitlement, while supporters say that they are simply a way to incentivize and retain top talent.

So, is it fair to shower the top brass with expensive toys when others are struggling to make ends meet? We'll let you be the judge!

Side A: Salesforce is properly rewarding key players

• According to Business Insider, they just laid off almost 8000 employees, it only makes sense that they reward the remaining staff.

• Valued and appreciated employees are more engaged, committed, and productive, resulting in a better bottom line. Wins all around.

• Executive poaching is a real threat and keeping star players from jumping ship has to be prioritized. When the going gets tough, the tough get Cartier watches.

• While the entire market is currently on fire, Salesforce stock is up 45% YTD. It's safe to say that Salesforce clearly knows how to run their business.

Side B: Salesforce is creating a toxic work environment

• It's a slap in the face to lay hard working people off, while in the same breath handing out $100,000+ gifts to executives, especially during times of economic uncertainty. Are Cartier watches really necessary?

• This kind of corporate gift-giving feeds into gender, racial and cultural biases among the haves and the have-nots.

• That money would've been better spent on investing in employee education and personal development programs rather than shiny toys.

• For all we know, these gifts could be bribes and even lead to legal implications that can harm the company's reputation.

Key takeaways: 

• Salesforce CEO Marc Benioff gifted his executives lavish presents, including a Cartier watch worth $86,423 and an Aston Martin car worth over $150,000.

• Salesforce CEO Marc Benioff is known for handing out $10,000 Cartier watches at Salesforce executive meetings.

• Salesforce’s culture of lavish spending dates as far back as 2015 at least, when it gifted the former COO a $40,564 watch, a $271,439 vehicle for a cofounder in 2017, and a $211,703 vehicle and a $86,423 watch for its former CEO in 2019.

• Salesforce reported record adjusted operating margins of 22.5% in its most recent financial year.

• Salesforce recently cut annual bonuses by 30% in April of 2023.

• In 2020, Salesforce cut about 1.9% of its workforce, or close to 1000 employees.

• In 2023, Salesforce cut about 10% of its workforce, or close to 8000 employees, to focus on profitability.

As for Salesforce, the company reported record adjusted operating margins of 22.5% in its most recent financial year. However, it has also made significant layoffs in recent years to focus on profitability. With the latest round of layoffs affecting approximately 10% of its workforce, the question of whether lavish gift-giving is appropriate becomes even more pressing.

The debate over whether or not corporate gift-giving is a necessary tool for motivating and retaining top talent, or whether it creates divisions and perpetuates a culture of privilege and entitlement. Some argue that it can be used strategically to incentivize and reward certain behaviours, while others argue that it is wasteful and creates a toxic work environment.

Ultimately, companies must decide for themselves whether the benefits of gift-giving outweigh the potential drawbacks. As for Salesforce, only time will tell whether or not their lavish gift-giving practices will help them retain their star players and maintain their reputation as one of the most praised companies culture-wise.