IBM Hikes CEO Salary and Bonus 44 Percent in 2002

Zardon · Mar 11, 2003, 07:47 AM

SAN FRANCISCO (Reuters) - International Business Machines Corp. IBM.N paid Chief Executive Sam Palmisano 44 percent more in salary and bonus in 2002 than in 2001, reflecting his assumption of the top spot at the world's biggest computer and computer-services company, according to a filing made with regulators on Monday.
Palmisano, who became chief executive of IBM in March 2002, was paid $1.43 million in salary and $4.5 million in bonuses, for a total of $5.93 million, according to IBM's annual proxy filing with the U.S. Securities and Exchange Commission. In 2001, before he became chief executive, he was paid $4.11 million, according to the filing.

Former Chief Executive Lou Gerstner, who remained chairman until Jan. 1, 2003, was paid a salary of $2 million last year, unchanged from the previous year, and a bonus of $1.5 million, for a total of $3.5 million. In 2001, Gerstner's bonus was $8.0 million, according to the proxy.

Gerstner, who came to IBM as chief executive in April 1993, lead the company to years of increasing profitability during the tech boom of the 1990s. Palmisano, a lifelong IBMer, is credited with building IBM's global services business into the largest in the world, fueling profits.

IBM, based in Armonk, New York, in January reported a fourth-quarter profit that fell for the sixth quarter in a row, yet computer services revenue rose after buying PriceWaterhouseCoopers consulting.

A two-year decline in technology spending has hurt IBM and others, as corporations have cut back on buying new computers, software and related technology, after the dot-com and telecommunications bubbles burst late in 2000.

IBM's income from continuing operations declined 35 percent in 2002 to $5.33 billion from $8.15 billion in 2001. Total revenue in 2002 declined 2.3 percent to $81.2 billion from $83.1 billion the previous year.

IBM's global services business, with 2002 revenue of $36.4 billion and gross margin of 27.5 percent, accounted for 45 percent of IBM's total revenue in 2002.

Mar 11, 2003, 07:47 AM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 179	IBM Hikes CEO Salary and Bonus 44 Percent in 2002 SAN FRANCISCO (Reuters) - International Business Machines Corp. IBM.N paid Chief Executive Sam Palmisano 44 percent more in salary and bonus in 2002 than in 2001, reflecting his assumption of the top spot at the world's biggest computer and computer-services company, according to a filing made with regulators on Monday. Palmisano, who became chief executive of IBM in March 2002, was paid $1.43 million in salary and $4.5 million in bonuses, for a total of $5.93 million, according to IBM's annual proxy filing with the U.S. Securities and Exchange Commission. In 2001, before he became chief executive, he was paid $4.11 million, according to the filing. Former Chief Executive Lou Gerstner, who remained chairman until Jan. 1, 2003, was paid a salary of $2 million last year, unchanged from the previous year, and a bonus of $1.5 million, for a total of $3.5 million. In 2001, Gerstner's bonus was $8.0 million, according to the proxy. Gerstner, who came to IBM as chief executive in April 1993, lead the company to years of increasing profitability during the tech boom of the 1990s. Palmisano, a lifelong IBMer, is credited with building IBM's global services business into the largest in the world, fueling profits. IBM, based in Armonk, New York, in January reported a fourth-quarter profit that fell for the sixth quarter in a row, yet computer services revenue rose after buying PriceWaterhouseCoopers consulting. A two-year decline in technology spending has hurt IBM and others, as corporations have cut back on buying new computers, software and related technology, after the dot-com and telecommunications bubbles burst late in 2000. IBM's income from continuing operations declined 35 percent in 2002 to $5.33 billion from $8.15 billion in 2001. Total revenue in 2002 declined 2.3 percent to $81.2 billion from $83.1 billion the previous year. IBM's global services business, with 2002 revenue of $36.4 billion and gross margin of 27.5 percent, accounted for 45 percent of IBM's total revenue in 2002.