IBM CEO’s Incentive Pay Almost Doubles on Profit Gains
IBM CEO Samuel Palmisano
Jay LaPrete/Bloomberg
Samuel Palmisano, chairman and chief executive officer of International Business Machines Corp.
Samuel Palmisano, chairman and chief executive officer of International Business Machines Corp. Photographer: Jay LaPrete/Bloomberg
International Business Machines Corp. almost doubled its incentive payout to Chief Executive Officer Samuel Palmisano last year, as the company exceeded its four-year earnings goals and the shares rose to a record.
Palmisano, 59, who’s led the company for eight years, received $9 million in incentives last year, the company said in a regulatory filing today. That compares with $4.75 million a year earlier.
IBM had full-year profit of $11.52 a share last year, beating its goal of at least $10 set four years ago, helped by the company’s expansion in software and services. Palmisano’s salary and target incentive this year will remain at $1.8 million and $5 million, respectively, unchanged since 2008.
Mike Daniels, who heads the company’s services business, received a raise of $160,000 to $825,000 this year, and Ginni Rometty, in charge of sales, got an increase of $170,000 to $800,000. The raises give them the second- and third-highest salaries at the company, surpassing finance chief Mark Loughridge and software head Steve Mills.
Shares of IBM fell $1.86 to $159.21 at 4 p.m. in New York Stock Exchange composite trading. The shares climbed 12 percent last year, and rose to a record in October.
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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