IBM Boss Rometty To Pocket £3m Bonus For 2016
Despite 15 back to back quarters of revenue decline, Rometty’s bonus boost is almost $1m more than last year’s
IBM CEO Virginia Rometty is in line for a $4.5m (£3.2m) bonus for 2015, regardless of IBM’s 15 straight quarters of revenue decline.
Rometty’s base salary for 2016 will stay at $1.6m (£1.1m), but her bonus is $900k (£630k) more than she received last year.
Decline
It was last week when IBM’s ‘transformation to higher value’ kicked off for 2016, amidst a profits and sales decline in its fourth quarter results.
Ginni Rometty has previously acknowledged that the company is currently shrinking “by design”.
For the last quarter IBM posted net income from continuing operations of $4.5bn (£3.2bn), down 19 percent from the same year ago quarter. Sales declined nine percent to $22.1bn (£15.6bn).
There was equally bad news for the full year ending 31 December, IBM posted net income of $14.7bn (£10.4bn), down 12 percent. And revenues came in at $81.7bn (£57.5bn), down 12 percent.
“We continue to make significant progress in our transformation to higher value,” said Ginni Rometty.
“In 2015, our strategic imperatives of cloud, analytics, mobile, social and security grew 26 percent to $29bn (£20.4bn) and now represent 35 percent of our total revenue,” said Rometty.
“We strengthened our existing portfolio while investing aggressively in new opportunities like Watson Health, Watson Internet of Things and hybrid cloud.
