IBM chief executive officer Sam Palmisano received a pay package worth £11.5m last year.
IBM disclosed details of Palmisano’s pay in a US Securities and Exchange Commission (SEC) filing this week.
Palmisano received a salary of $1.68m, a $5.18m bonus, and $4.24m in incentive pay during 2005.
Palmisano also received $7.2m in stock options. In addition, he received almost $1m in restricted stock for overseeing the sale of IBM’s PC business to Lenovo in May 2005.
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For 2005, Palmisano saw his incentive pay more than double, while his basic salary crept up from £1.66m. The cash bonus remained the same.
The incentive pay is partly the result of Palmisano becoming both CEO and chairman of IBM in 2003.
IBM achieved a 15% increase in operating profits in 2005, to $8.7bn. It also announced that it was making 13,000 staff redundant, mainly in the US and western Europe, while it hired an extra 14,000 staff in India.