IBM CEO's pay ticked higher to $21.2M in 2009

Mar 09, 2010 By JORDAN ROBERTSON , AP Technology Writer

(AP) -- The pay package for IBM Corp.'s CEO notched slightly higher in 2009, according to calculations by The Associated Press, as he was rewarded for a year in which the technology company wrung out big profit gains despite a rocky market that clipped sales.

Sam Palmisano, 58, got a pay package that the company valued at $21.2 million, up from $21.0 million a year earlier, according to the AP's calculations based on pay data contained in IBM's proxy document filed Monday with the .

The AP's calculations of executive pay sometimes differ from the totals the companies list in the summary compensation table of their proxy statements filed with the SEC. IBM listed Palmisano's 2009 pay package as valued at $24.3 million, a decrease of about $200,000 from the year before.

The AP's calculations of total pay include salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of and awards granted during the year. The calculations exclude changes in the present value of pension benefits.

IBM surprised Wall Street in 2009 with increasingly higher profit forecasts, which helped the stock close the year with a 50 percent gain. The shares traded at over $130 per share at the end of 2009 and hit a 52-week high of $134.25 on Jan. 19.

IBM's focus on new markets such as "smart" power grids and other high-margin software and services projects, as well as cost-cutting, helped its profits even as sales slipped.

In deciding Palmisano's compensation, the company's board of directors cited IBM's "very strong financial performance" in a difficult , its posting $10 per share in earnings a year ahead of schedule, and an increase in dividend payouts to shareholders to $2.9 billion in 2009 from $2.6 billion in 2008.

For all of 2009, IBM's net income clocked in at $13.4 billion, a 9 percent jump from the year before, despite a revenue decrease of 8 percent to $95.8 billion, or a 5 percent decline adjusting for currency.

For the year ended Dec. 31, Palmisano got:

- A base salary of $1.8 million

- A bonus of $4.8 million based on IBM's performance

- Additional compensation of $1.1 million, which included $320,065 for his personal travel on IBM planes, along with personal security, financial planning and other personal expenses

- $13.5 million worth of stock under a program that awards IBM executives based on the company's performance over a three-year period

He also exercised 80,000 options for a gain of $1.5 million. He had 165,902 shares of stock with a value of $16.0 million vest.

By comparison, Mark Hurd, the CEO of a big IBM rival, Hewlett-Packard Co., got a 2009 pay package that HP valued at $24.2 million, a 29 percent drop from the year before in part because of a much smaller bonus for Hurd than he previously received, also according to the AP's calculations.

, which is based in Armonk, N.Y., said in the filing that its annual meeting is set for April 27 in Milwaukee.

Explore further: Alibaba's Ma rides 'Forrest Gump' story to riches

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Intel CEO gets $12.4M in 2008 pay

Mar 23, 2009

(AP) -- The value of Intel Corp. Chief Executive Paul Otellini's compensation package rose slightly to $12.4 million in 2008, a year in which the chip maker's profit was whacked by a global slowdown in personal computer ...

Sun CEO's pay package cut by a third in '09

Oct 29, 2009

(AP) -- The value of Sun Microsystems Inc. CEO Jonathan Schwartz's latest pay package dropped 37 percent from last year as the company lost more than $2 billion and was in such dire financial shape that it ...

Microsoft CEO's compensation down 6 percent in '09

Sep 30, 2009

(AP) -- The value of the compensation package granted to Microsoft Corp. CEO Steve Ballmer fell about 6 percent in fiscal 2009, a year in which weak computer sales cut into the software maker's profits.

IBM's profit rises 9 pct, revenue growth resumes

Jan 19, 2010

(AP) -- IBM Corp. said Tuesday that it managed a 9 percent increase in profit in the last quarter as the technology company's revenue grew for the first time in a year and a half.

Microsoft CEO Ballmer's salary up 4 percent in '09

Sep 19, 2009

(AP) -- Microsoft Corp. raised CEO Steve Ballmer's salary by 4 percent at the start of fiscal 2009, a year in which the software maker's profit declined 17 percent as the economic meltdown decimated personal ...

Recommended for you

Alibaba makes Wall Street debut

3 hours ago

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

6 hours ago

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

9 hours ago

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

finitesolutions
not rated yet Mar 09, 2010
--He put his money in a DB2 database. Nothing new here.
UPDATE salary_table
SET salary=237846236472343273
WHERE LastName='Palmisano' AND FirstName='Sam';
COMMIT;

--:)