Investing.com -- Salesforce (NYSE:CRM) shares declined 3.7% as the market reacted skeptically to the announcement that Robin Washington will take on the combined role of President and Chief Operating and Financial Officer (COFO), effective March 21, 2025. Investors expressed concern over the consolidation of the two significant positions, which traditionally have been led separately.
The company, known for its AI CRM solutions, described the appointment as a strategic move to drive profitable growth and operational excellence. Washington, a seasoned executive with experience at Gilead Sciences (NASDAQ:GILD), Hyperion, and PeopleSoft, has been on Salesforce’s board since 2013. The announcement coincided with the news of Brian Millham’s retirement, set for May 1, 2025, after a 25-year career with Salesforce.
Analysts have provided mixed reactions to the news. Evercore ISI analyst Kirk Materne posed questions regarding how Washington will balance the demands of the dual role, the company’s approach to margin expansion and acquisitions, and potential changes to the go-to-market (GTM) strategy. Barclays (LON:BARC) and Truist Securities acknowledged the potential skepticism from investors but also highlighted Washington’s extensive leadership experience.
Needham analyst Scott Berg maintains a Buy rating and a $400.00 price target on Salesforce, noting Washington’s strong qualifications and familiarity with the company’s operational plans. Stifel analyst J. Parker Lane expressed surprise over Millham’s departure and anticipated further details on the company’s GTM strategy and the impact of recent layoffs and hiring related to the company’s AI solutions during the upcoming earnings call on February 26.
The announcement has raised questions about the future direction of Salesforce, with investors and analysts looking for clarity on the implications of the new COFO role and its impact on the company’s growth trajectory.
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