$20.9 Million Man - That's IBM CEO Sam Palmisano
Posted March 10, 2008 3:51 p.m. EDT
Updated March 11, 2008 7:10 a.m. EDT
BOSTON — IBM Corp.'s chairman and chief executive, Samuel J. Palmisano, enjoyed an 11 percent raise in compensation to $20.9 million in 2007, a year in which the technology company increased its profits and stock price.
In a regulatory filing Monday, IBM said Palmisano, 56, was paid $1.8 million in salary and $5.8 million in a bonus-like payout under IBM's incentive plan. He also got options and stock equivalents worth $12.3 million when they were issued.
Another $988,479 came to Palmisano through various perks, including $406,235 worth of travel on IBM aircraft, $364,162 in dividend equivalents on his restricted stock and $152,460 in contributions to his retirement plan.
The Associated Press calculates total pay by tallying executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The AP total may differ from figures that companies report.
Palmisano's total of $20.9 million was up from $18.8 million the prior year. The increase came as Armonk, New York-based IBM posted a 10 percent gain in net profit, to $10.4 billion.
IBM's stock price rose 11 percent in 2007.
Big Blue employs more than 11,000 at various facilities around the Research Triangle area.
As Reuters noted, Palmisano has directed IBM's shift away from commodity computer hardware such as personal computers and hard disk drives to higher-profit areas such as technology consulting, outsourcing and software.
CEO since 2002, Palmisano became IBM's chairman in 2003.
IBM sold its personal computer division to Lenovo two years ago.