IBM Boss Rometty Nets $3.6 Million Bonus Despite 2014 Performance

IBM (IBM) chief executive Ginni Rometty, in the midst of laying off what’s said to be thousands of employees worldwide, has gained a $3.6 billion bonus for her performance in 2014, despite the company’s 11-quarter revenue declining losing streak and uneven transition toward analytics, cloud, mobile and security solutions.

In addition to Rometty’s bonus award, IBM increased the value of her long-term incentives by 4 percent to $13.3 million, slated to be paid out early in 2018, according to an IBM 8-K SEC filing.

So far, there’s no word if Rometty intends to keep the 2014 bonus, which if she elects to do so would stand in stark contrast to her declining 2013’s incentive award. This time last year, as IBM posted 2013 sales of $99.8 billion for a 2 percent dip, and net income of $16.5 billion, a 1 percent slide, Rometty said that “in view of the company’s overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013.”

IBM’s full year 2014 sales haven’t fared any better, with net income sliding 7 percent to $15.8 billion and sales falling 6 percent to $92.8 billion. Moreover, IBM’s shares tumbled 14 percent in 2014.

Rometty’s salary for 2015 stands at $1.6 million with $5 million in incentive bonus awards available to her as well, according to the 8-K document.

Rometty isn’t the only IBM top executive to be granted a bonus for 2014. Chief Financial Officer Martin Schroeter awarded $747,600, IBM Software and Systems executive vice president Steven Mills got $703,500, John Kelly, IBM Solutions Portfolio and Research senior vice president was awarded 791,100 and IBM general counsel and senior vice president Robert C. Weber was granted $737,520.

In sum, Rometty and IBM’s top brass gained $6.58 million in incentive awards for 2014. In addition to Rometty’s bump in incentive goal for 2015, the bonus targets for Schroeter, Mills, Kelly and Weber all have increased as well.