SALT LAKE CITY — Cornerstone OnDemand, a cloud-based learning and human capital management software company, will expand its operations to Salt Lake City, according to the Governor’s Office of Economic Development.
Under the terms of an agreement announced Thursday, the California-based firm will add up to 350 new jobs, generate $6 million in new state revenue and make an estimated $4.4 million in capital investment over a seven-year period.
Employing nearly 2,000 employees in 43 countries around the world, Cornerstone recorded revenue of $482 million in 2017 — up 15 percent year over year, a news release stated. The new Utah Operations Center will be the company’s third office in North America and its 18th office worldwide, a GOED news release said.
"Our continued growth and success have created a new opportunity to expand U.S. operations outside of our global headquarters in Santa Monica, California," Brian Swartz, chief financial officer for Cornerstone OnDemand, said in the statement. "Utah meets our goals of managing expansion in a cost-effective and thoughtfully planned manner."
He added that Utah's robust technology presence, and a highly educated and trained workforce make it an attractive location for expansion. The state also offers "tremendous amenities for our employees, including cost-of-living and housing affordability," he said.
"We have begun initial recruiting efforts and plan to be operational in Utah by the end of the year,” Swartz added.
Over the life of the contract with the state, Cornerstone is expected to create up to 350 permanent jobs in finance, global product support, engineering, product development and administration, the release stated. The total wages in aggregate are required to exceed 110 percent of the average county wage, with projected new state wages over the seven-year agreement estimated to be approximately $156 million, which includes wages, salaries, bonuses and other taxable compensation. Projected new state tax revenues, as a result of corporate, payroll and sales taxes are estimated to be $6 million over the contract period.
Cornerstone may earn up to 20 percent — about $1.2 million — of the new state taxes the company will pay over the seven-year life of the agreement in the form of a postperformance Economic Development Tax Increment Finance tax credit rebate.
“We’re excited that Cornerstone OnDemand — a growing company known for its industry leadership and workplace culture — is increasing its presence here in Utah,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “This expansion represents a big win for Utah, and we look forward to seeing all of the benefits that the additional jobs and investment will bring to our communities.”