Millennium Post

IBM does badly... CEO gets fat pay hike

Rometty and other top executives did not take bonuses for 2013, after International Business Machines Corp turned in disappointing results for that year. But even though International Business Machines Corp is still struggling to catch up with recent shifts in the way corporate customers buy technology, it disclosed a new pay package that appears to be a vote of confidence in her efforts.

International Business Machines Corp has said it’s making progress by selling off less profitable divisions and investing in new businesses including data analytics, cloud computing and mobile software. As chief executive officer, Rometty is also getting a 6.7 per cent raise in her base salary, which has been $1.5 million since she took the top job in 2012. She will get $1.6 million in 2015, the company said in a regulatory filing Friday.

International Business Machines Corp is also raising her target bonus to $5 million for 2015. In addition, the company said she will be eligible for up to $13.3 million in potential stock grants that would be awarded for her performance over the next three years, up from a maximum of $12.75 million in long-term incentive grants that were reported last year. A company spokesman declined comment on Rometty’s pay deal on Friday. International Business Machines Corp is expected to disclose more details and the rationale for her compensation in its annual proxy statement this spring.

IBM, which is based in Armonk, New York, reported last week that its 2014 sales fell 6 per cent to $92.8 billion, while net income dropped 27 per cent to $12.02 billion. The company had previously abandoned a goal of earning $20 a share in 2015, and instead said it expects annual earnings of $15.75 to $16.50 per share. The company’s revenue has declined for the last 11 quarters.

International Business Machines Corp shares ended Friday’s session at $153.31, down 1.4 per cent for the day. They are down 13.6 per cent in the past year.
Next Story
Share it