IBM chief gets £11.5m


IBM chief gets £11.5m

Antony Savvas

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.

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.

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