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Report: IBM's top exec pay package 'now worth $65M'

IBM's Ginni Rometty

Apr, 24 2017, 7:09 AM

IBM's total compensation package for Chair and CEO Ginni Rometty is worth far more than $33 million, says Bloomberg news service.

"[H]er compensation is now worth $65 million, or almost twice as much as her reported pay," Bloomberg says. citing how IBM values stock options. She's now among the top 10 best-paid CEOs even though IBM has posted declining revenues over the past five years under her leadership and last week reported declining revenue for the 20th consecutive quarter.

"Helped by last year’s 21 percent rebound in IBM shares, Rometty’s pay package is currently worth $65 million, according to the Bloomberg Pay Index," Bloomberg reports.

"That’s higher than any of her closest industry rivals, like Microsoft’s Satya Nadella and Hewlett Packard Enterprise’s Meg Whitman, and puts her among America’s 10 best-paid CEOs."

IBM, which recently launched another round of job cuts as part of an ongoing talent "remix," hosts its annual shareholders meeting on Tuesday at which Rometty's compensation package will be discussed,

Over the past five years as Rometty has set out to transform the company to one focused on cognitive computing, artificial intelligence and the cloud as well as related services, IBM investors have faced a total return of "less than 0.1 percent," according to Bloomberg.

It’s a hefty sum for any CEO, let alone one who’s overseen five years of falling revenue and left shareholders with a total return of less than 0.1 percent.

And the truth is, that figure might understate her actual compensation -- by perhaps 50 percent or more, because of the way IBM values her stock options.

An IBM (NYSE: IBM) spokesperson said the company values stock options the same way as it has for more than a decade.

Two rival proxy advisors have recommended that the pay package be rejected at the meeting Tuesday in Tampa.

IBM operates one of its largest corporate campuses in RTP and employs thousands of people across North Carolina.

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