IBM CEO pay jumps 23% in 2023, average employee gets 7%
(2024/03/15)
- Reference: 1710508508
- News link: https://www.theregister.co.uk/2024/03/15/ibm_ceo_pay_jumps_23/
- Source link:
IBM chairman and CEO Arvind Krishna bagged a double digit pay bump in 2023 as he met the major financial objectives outlined by the board. The average compensation of employees that helped Big Blue achieve those targets? Up by single digits.
Krishna’s total compensation went up 23 percent year-on-year to $20.398 million, including an unchanged base salary of $1.5 million, stock awards of $11.483 million, with the rest comprised of non-equity incentive plans, travel and security expenses.
The revenue goal for 2023 was $62.3 billion – IBM actually generated $61.9 billion, a 99 percent attainment. However, operating cash flow of $12.7 billion was higher than the targeted $12.3 billion. Both metrics determined the Annual Incentive Plan payout.
[1]
The Performance Share Unit payout - held within the stock awards - was scored against revenue, operating earnings per shares, and free cash flow targets from 2021 to 2023.
[2]
[3]
Other metrics pertained to business results: IBM's Software division revenue grew five percent and Consulting revenue was up six percent; IBM continued to shift to higher margin growth revenues, with 75 percent of revenue now in Software and Consulting; free cash flow generation was $11.2 billion, up $1.9 billion year-on-year.
[4]IBM boss Arvind 'kerching' Krishna paid more than $16m in 2022
[5]Broadcom CEO pay award jumps 164% to $160.8 million
[6]HP CEO pay for 2023 = 270,315 printer cartridges
[7]Microsoft CEO Nadella's compensation drops... to $48M
IBM also completed nine acquisitions in the year, spent $7 billion on R&D and engineering, and paid out $6 billion to shareholders.
Some 282,000 staff were employed at IBM at the end of December 2023, and their average total compensation was $65,463, 6.89 percent higher than at the end of 2022. The base salary of staff was flat at $45,197. The CEO to median employee pay ratio was 312:1, higher than the 271:1 [8]recorded last year.
The pay stats were included in a [9]proxy statement filed with SEC ahead of an Annual Meeting of Stockholders on April 30, where shareholders will have the opportunity to have their say on pay. Other things up for a vote include appointing an independent accounting firm, requesting a report on lobbying activities, and more.
[10]
In terms of the other IBM execs' pay awards, CFO James Kavanaugh got $11.68 million, RD Thomas, Chief Commercial Officer, got $10.3 million, and Vice Chairman Gary Cohn was paid $9.53 million. ®
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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://www.theregister.com/2023/03/10/ibm_arvind_krishna_pay/
[5] https://www.theregister.com/2024/02/28/broadcom_ceo_pay_award_jumps/
[6] https://www.theregister.com/2024/02/15/hp_ceo_pay_for_2023/
[7] https://www.theregister.com/2023/10/20/microsoft_ceo_nadellas_compensation_drops/
[8] https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/51143/000110465923029014/tm231774d2_def14a.htm
[9] https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0000051143/000110465924032641/tm2329614-d3_def14a.htm
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Krishna’s total compensation went up 23 percent year-on-year to $20.398 million, including an unchanged base salary of $1.5 million, stock awards of $11.483 million, with the rest comprised of non-equity incentive plans, travel and security expenses.
The revenue goal for 2023 was $62.3 billion – IBM actually generated $61.9 billion, a 99 percent attainment. However, operating cash flow of $12.7 billion was higher than the targeted $12.3 billion. Both metrics determined the Annual Incentive Plan payout.
[1]
The Performance Share Unit payout - held within the stock awards - was scored against revenue, operating earnings per shares, and free cash flow targets from 2021 to 2023.
[2]
[3]
Other metrics pertained to business results: IBM's Software division revenue grew five percent and Consulting revenue was up six percent; IBM continued to shift to higher margin growth revenues, with 75 percent of revenue now in Software and Consulting; free cash flow generation was $11.2 billion, up $1.9 billion year-on-year.
[4]IBM boss Arvind 'kerching' Krishna paid more than $16m in 2022
[5]Broadcom CEO pay award jumps 164% to $160.8 million
[6]HP CEO pay for 2023 = 270,315 printer cartridges
[7]Microsoft CEO Nadella's compensation drops... to $48M
IBM also completed nine acquisitions in the year, spent $7 billion on R&D and engineering, and paid out $6 billion to shareholders.
Some 282,000 staff were employed at IBM at the end of December 2023, and their average total compensation was $65,463, 6.89 percent higher than at the end of 2022. The base salary of staff was flat at $45,197. The CEO to median employee pay ratio was 312:1, higher than the 271:1 [8]recorded last year.
The pay stats were included in a [9]proxy statement filed with SEC ahead of an Annual Meeting of Stockholders on April 30, where shareholders will have the opportunity to have their say on pay. Other things up for a vote include appointing an independent accounting firm, requesting a report on lobbying activities, and more.
[10]
In terms of the other IBM execs' pay awards, CFO James Kavanaugh got $11.68 million, RD Thomas, Chief Commercial Officer, got $10.3 million, and Vice Chairman Gary Cohn was paid $9.53 million. ®
Get our [11]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2023/03/10/ibm_arvind_krishna_pay/
[5] https://www.theregister.com/2024/02/28/broadcom_ceo_pay_award_jumps/
[6] https://www.theregister.com/2024/02/15/hp_ceo_pay_for_2023/
[7] https://www.theregister.com/2023/10/20/microsoft_ceo_nadellas_compensation_drops/
[8] https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/51143/000110465923029014/tm231774d2_def14a.htm
[9] https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0000051143/000110465924032641/tm2329614-d3_def14a.htm
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfR@qRFYancHB1hCMqoIcQAAAI8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Forget about the stratosphere...
druck
...7% on average - that's bloody good.
Re: Forget about the stratosphere...
Anonymous Coward
Not so sure about that.
"On average" - I'd be more willing to believe the higher up the food chain, the bigger the compensation, the less to go around for the minions. Below a certain grade, managers just used to get a pot of money to share out between their direct reports. Some got more, some got less.
Head in the oven, feet in the freezer - on average, I am warm.....
Re: Forget about the stratosphere...
Yet Another Anonymous coward
It's IBM, fire force-reduce everyone above average pay grade, give residue a 7% rise = half wages bill
Nothing to complain about
Pascal Monett
If the Board is stupid enough to shovel a boatload of money to some guy who just points to a direction, it's the Board's problem.
Re: Nothing to complain about
Anonymous Coward
Except it's no problem. The board's pay will be linked to the CEOs. They have little interest in seeing a CEO paid less, because that means they'd be paid less.
Whether the CEO is taking the right decisions for long term value is unimportant to the board, or indeed Wall Street.
Shareholder value at work
There will be no clawback in a couple of years when everyone dies of a disease caught from their telephone.