IBM's CEO Sees Significant Pay Increase

In a remarkable financial disclosure, IBM chairman and CEO Arvind Krishna's compensation saw a 23% increase, reaching $25 million in 2024. This significant rise from $20.3 million in the previous year highlights the company's strong performance and Krishna's pivotal role in steering IBM towards new heights.

Breaking Down the Compensation

The surge in Krishna's compensation was primarily due to a substantial increase in stock awards, which jumped to $14.8 million from $11.4 million. Despite this, his base salary remained steady at $1.5 million for the second consecutive year. Additionally, for his performance in 2024, the IBM board approved an annual incentive payment of $3,850,000, which was 110% of his target opportunity.

IBM's Financial Health

IBM's financial results for 2024 were robust, with a 3% growth in revenue in constant currency, driven by innovation in hybrid cloud and AI technologies. The company reported $62.8 billion in revenue, $13.4 billion in cash from operations, and generated $12.7 billion of free cash flow. These figures underscore IBM's strong market position and its ability to generate significant value for its stakeholders.

Comparative Employee Compensation

In contrast to Krishna's compensation, the median employee at IBM earned a base salary of $43,069, as per the proxy filing. This stark difference highlights the varying scales of compensation within the company, reflecting the different levels of responsibility and impact on the organization's success.