(CRM) Jumps as it Seeks 4-for-1 Stock Split

January 28, 2013 3:30 PM EST
Shares of (NYSE: CRM) are strong Monday following the filing of a proxy statement seeking shareholder approval for a 4-for-1 stock split.

Specifically the company is asking shareholders to approve the amendment and restatement of the Amended and Restated Certificate of Incorporation of the Company to increase the authorized share capital of the Company from 405,000,000 to 1,605,000,000.

On December 13, 2012, the Board approved pursuing a forward stock split through a stock dividend contingent upon the approval of the Amendment whereby each share of common stock effectively would be split into four shares of common stock. Conditioned on receiving stockholder approval of the Amendment, the Company plans to issue a dividend of three shares of common stock for every one share of common stock issued and outstanding. This Stock Split will significantly increase the number of shares of common stock outstanding and common stock reserved for issuance, thus necessitating an increase in the number of authorized shares of the Company.

The Board believes that effecting the Stock Split would make our shares more affordable and attractive to a broader group of potential investors, increase liquidity in the trading of our common stock and increase the attractiveness of our employee equity awards. The Board believes it is in our best interests to increase the number of authorized shares of common stock to accommodate the Stock Split.

Shares of last traded at $178.07, up 2.42%.

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