A million here, a million there...
(attributed to Everett Dirksen: http://www.dirksencenter.org/print_emd_billionhere.htm)
IBM's head honcho Ginni Rometty was paid $16.45m for running the company last year though this was dramatically lower than it could have been – the exec herself downgraded her final incentive score and the board agreed. According to a 2019 Notice of Annual Meeting & Proxy Statement this week filed with America's Securities and …
"These amounts [in the $1.1m figure] also include the aggregate incremental cost, if any, of travel by her family members or other guests on both business and non-business occasions."
Non-business occasions? Remind me again why she can charge non-business travel costs to the company? WTF?
One rule for her, another for everyone else.
"...while IBM also performed well on other key non-financial factors such as diversity and workforce engagement."
When you ask for applicants' ethnicity on recruitment pages, I guess it might help completing your diversity directive.
Probably doesn't make sense given she probably has several pool limo's at each site except her home base. Plus other execs probably get to use it when she isn't.
Given the size of the IBM car fleet they probably get better discounts on adding a few more cars to the leasing fleet than buying a few outright in addition. Plus then you have to deal with separate maintenance agreements and the like.
My target incentive is 12% and I got 1,3% this year which is roughly 11% of my target bonus. I'm an IBMer since 33 years and it's at least 10 years that my annual bonus is that small. I would be happy to get 81% of my target bonus but it seems for the average IBMer the criteria to get your bonus are much tougher than for the CEO.
How was your GDP this year? Apparently IBM's performance sucked so much that GDP was the absolute rock bottom bare minimum for mere proles, yet Big G managed to take home a few mill anyway on the basis that "IBM's 2018 performance was the best it has been since 2011, when Rometty took over from Sam Palmisano and revenues peaked at $106.9bn.".
Let them eat cake.
Probably better than for, say, Facebook. Bizarre as it seems to we ordinary mortals, IBM's CEO gets a modest amount of "compensation" compared to her peers. Mind you, considering that she has hardly made a start on stopping the rot started by Palmisano, a pay cut seems only fair.
I would love to hear how you justify a beyond-pathetic Growth-Driven Profit (GDP) 'bonus' for mere proles this year, when "IBM's 2018 performance was the best it has been since 2011, when Rometty took over from Sam Palmisano and revenues peaked at $106.9bn", AND "Gross profit margin was up to 46.4 per cent and operating earnings per share was up too".
Clearly our performance wasn't bad enough for YOU to take a meaningful hit.
The rub is that IBM has been saying they returned to growth, but in the report the growth was all due to currency changes. At constant currency the revenue growth was 0.0%.
Guess which measure is used internally for the bonus calculation for normal staff, according to insiders? Yes, constant currency. Thus a poor bonus.
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