BENGALURU: IBM chairman and CEO Arvind Krishna earned $16.5 million in total compensation in 2022, down $1 million from 2021, according to regulatory filings.
Krishna’s base salary remained at $1.5 million, and he received $8.9 million in stock and $2 million in options. The ratio of the total annual compensation of the CEO to the total annual compensation of the average employee is 271:1. Compensation for the average employee was $61,242.
The filing said the board made no changes to Krishna’s base salary or target annual incentive for 2023, which was just below the average target cash compensation of the benchmark group (CEOs at similar companies) for 2023. “He was awarded an annual long-term incentive award valued at $17 million, the first increase since Mr. Krishna became CEO in 2020 and in line with the 2023 benchmark group median… For 2023, 77% of Mr. Krishna’s annual aggregate target compensation is subject to risk and depends on the achievement of strict performance goals and IBM’s stock price performance,” the statement said.
In 2022, IBM’s revenue grew 11% to $60.5 billion and generated $10.4 billion in cash from operations. Its software revenue grew 12% year-over-year, while its hybrid platform and solutions grew 9%, including RedHat at the level of 17%. Consulting revenue increased by 15%.
“Last year, we took decisive steps to build a stronger IBM and help our clients turn business challenges into opportunities. The market recognizes hybrid cloud and AI as two of the most transformative technologies of our time, and for clients they serve as a fundamental source of competitive advantage. Our consulting teams bring these technologies to life to accelerate our customers’ digital transformation and enterprise automation journeys. We also continued our steady pace of acquisitions to grow our portfolio, innovated our infrastructure, strengthened our software portfolio, streamlined our go-to-market strategy and expanded our partner ecosystem,” Krishna said in a letter to shareholders.
Krishna’s base salary remained at $1.5 million, and he received $8.9 million in stock and $2 million in options. The ratio of the total annual compensation of the CEO to the total annual compensation of the average employee is 271:1. Compensation for the average employee was $61,242.
The filing said the board made no changes to Krishna’s base salary or target annual incentive for 2023, which was just below the average target cash compensation of the benchmark group (CEOs at similar companies) for 2023. “He was awarded an annual long-term incentive award valued at $17 million, the first increase since Mr. Krishna became CEO in 2020 and in line with the 2023 benchmark group median… For 2023, 77% of Mr. Krishna’s annual aggregate target compensation is subject to risk and depends on the achievement of strict performance goals and IBM’s stock price performance,” the statement said.
In 2022, IBM’s revenue grew 11% to $60.5 billion and generated $10.4 billion in cash from operations. Its software revenue grew 12% year-over-year, while its hybrid platform and solutions grew 9%, including RedHat at the level of 17%. Consulting revenue increased by 15%.
“Last year, we took decisive steps to build a stronger IBM and help our clients turn business challenges into opportunities. The market recognizes hybrid cloud and AI as two of the most transformative technologies of our time, and for clients they serve as a fundamental source of competitive advantage. Our consulting teams bring these technologies to life to accelerate our customers’ digital transformation and enterprise automation journeys. We also continued our steady pace of acquisitions to grow our portfolio, innovated our infrastructure, strengthened our software portfolio, streamlined our go-to-market strategy and expanded our partner ecosystem,” Krishna said in a letter to shareholders.
