IBM has brought back annual performance bonuses for its chief executive and her top lieutenants for 2014 despite falling profits and a tumbling stock price.
According to a regulatory filing, the outfit withheld annual bonuses in 2013 at the executives’ own request. The company has had more than 11 quarters of falling profits and is still trying to lose staff.
The bonuses returned as a feature of IBM’s executive compensation for 2014, according to a document filed with securities regulators on Friday, despite the fact that IBM’s net profit from continuing operations fell 7 percent last year and its stock shed about 14 percent.
IBM CEO Virginia Rometty will get a $3.6 million annual incentive payout for 2014, according to the filing. Chief Financial Officer Martin Schroeter and three other executives or advisers were also listed as getting smaller annual incentive payouts.
Rometty will receive a base salary of $1.6 million for 2015. This is her first rise in pay from the $1.5 million she got each of the last three years after taking up the post of CEO at the beginning of 2012.
She will also get a target annual incentive award of $5 million for 2015 and a long-term stock grant worth $13.3 million, which would be payable in 2018, according to the filing.
IBM last year withdrew its long-term plan to hit $20 per share in operating earnings for 2015 as it failed to get the sort of focus on higher-margin businesses such as security software and cloud services.
IBM has been divesting underperforming businesses in an attempt to move into the new era of cloud computing, a struggle shared by other established technology leaders.
No bonuses for the lesser suits, but at least they are not being fired.