Business Breaking News

The Canadian Press - ONLINE EDITION

IBM CEO Virginia Rometty gets pay package valued at $15.4 million in 1st year running company

By: The Associated Press

Monday, Mar. 11, 2013 at 6:19 PM | Comments: 0

ARMONK, N.Y. - IBM Chairman and CEO Virginia Rometty's pay doubled in her first year running one of the world's biggest and best-known technology companies, but she still took home less than her predecessor.

Rometty, the first woman to run IBM, received a 2012 pay package worth $15.4 million, based on an analysis of regulatory documents filed Monday. That's up sharply from the roughly $7.5 million she made the year before as senior vice-president in charge of the company's global sales and marketing. As with most CEOs, most of Rometty's compensation consisted of long-term stock awards that could wind up being worth more or less than the $9.3 million listed in the initial disclosures.

Rometty, 55, got off to a solid start, focusing on growing IBM's software business, which has higher profit margins, over hardware. The Armonk, N.Y.-based company's adjusted earnings climbed 13 per cent from the previous year under Sam Palmisano and it forecast 2013 results above analyst expectations. Its stock price edged up just 4 per cent last year, though, lagging the 7 per cent gain in the Dow Jones industrial average, which consists of 30 bellwether stocks, including IBM's.

Palmisano, who had been IBM's CEO for a decade, remained chairman until October and then served as a senior adviser to the company, receiving a total 2012 package valued at $22.3 million, by AP's calculations. That's slightly less than the $24.2 million he received in his final year as CEO, but more than the roughly $21 million that he made annually from 2007 through 2010.

Rometty's first-year package included a $1.5 million salary, a $3.9 million bonus and perks valued at $687,725, including more than $304,000 for personal travel on the company's airplanes. The AP's formula counts salary, bonuses, perks and stock and options awarded to the executive during the year. It doesn't include changes in retention and pension plans, two factors that IBM Corp. listed in its summary of Rometty's calculation.

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.