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February 2, 2015

IBM CEO Ginni Rometty pockets $3.6m bonus

Bonus awarded despite IBM reporting a fall in revenue and profits in 2014.

By Amy-Jo Crowley

Virginia Rometty, the high profile CEO of IBM, has taken a bonus of $3.6m despite declining profits and revenues for the hardware giant’s latest fiscal year.

IBM revealed in a company filing a set of new pay packages after it withheld annual bonuses in 2013.

Rometty, who took the job in 2012, is receiving a $100,000 increase in salary, from $1.5m in 2014, to $1.6m this year.

She will also get an incentive payment of $3.6m, worth $300,000 a month, for her performance last year, even though IBM’s sales and profits declined in 2014.

IBM said she is also eligible for up to $13.3m in restricted stock grants that would be awarded for her performance over the next three years, up from $12.75m last year.

The announcement comes as IBM struggles to move away from its core hardware business to focus on businesses such as security software and cloud computing.

For its full fiscal year, IBM’s revenue came in at $24.11bn, down from $27.39bn, as profits fell from $6.19bn to $5.48bn, partly due to weakening demand for hardware services.

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IBM, which recently dismissed a report it was planning massive layoffs, last week announced 300 new positions for graduates and IT professionals in the UK after launching a new services centre in Leicester.

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