IBM’s Most Highly Compensated Executives In 2022

‘We took decisive steps to build a stronger IBM and helped our clients turn business challenges into opportunities,’ IBM Chairman and CEO Arvind Krishna said in a letter accompanying the company’s annual proxy statement.

IBM Chairman and CEO Arvind Krishna received about $16.6 million in total compensation in 2022, down about 5 percent year over year.

His pay was published in IBM’s annual proxy statement. The company will hold its annual meeting of stockholders April 25.

“In the past year, we took decisive steps to build a stronger IBM and helped our clients turn business challenges into opportunities,” Krishna wrote in a letter accompanying the proxy statement. “I am proud of the progress we have made as a company and I am especially proud of the IBMers who have made it possible.”

Total Compensation For IBM Executives

Pay was also reported for the following IBM executives:

*Jim Kavanaugh, CFO

*Tom Rosamilia, SVP, Senior Adviser

*Gary Cohn, Vice Chairman

*Michelle Browdy, SVP, Legal, Regulatory Affairs, General Counsel

Here’s what you need to know.

5. Michelle Browdy

Michelle Browdy, IBM senior vice president for legal and regulatory affairs and general counsel, will receive a $936,000 salary rate effective April 1, according to the filing.

She received a base salary of $925,500 in 2022, up about 4 percent year over year. Her total compensation for 2022 was $6.5 million, down about 2 percent year over year.

Browdy saw $3.2 million in stock awards in 2022, down about 25 percent year over year. She saw about $740,000 in option awards in 2022.

She has an annual incentive target for 2023 of $1.3 million. She received about $1.5 million in annual incentive payouts in 2022.

IBM’s Compensation Committee included the following comments about Browdy’s 2022 performance:

* “Provided legal and regulatory support for IBM’s growth initiatives globally, including driving substantial change in support of IBM’s Ecosystem transformation”

* “Government and Regulatory Affairs team helped support passage of the CHIPS Act and the EU Digital Markets Act, and ensured the orderly wind-down of the IBM Russia business”

* “Continued to enhance IBM’s cybersecurity, privacy, data governance and AI ethics posture as regulatory focus on these issues continued to heighten around the world”

Browdy also received $148,000 in “all other compensation” in 2022, up about 9 percent year over year.

“All other compensation” for Browdy included “IBM contributions to defined contribution plans of $131,508” and “personal financial planning and other personal expenses,” according to the filing.

Browdy joined IBM in 2006, according to her LinkedIn account. She has held her current role since 2015.

4. Tom Rosamilia

Tom Rosamilia, senior vice president, will receive a salary rate of $894,000 starting April 1.

However, he plans to retire from IBM by June 30, IBM announced in January.

Rosamilia’s base salary in 2022 was $878,000, up about 6 percent year over year. His total compensation in 2022 was $7.7 million, down about 5 percent year over year.

Rosamilia saw stock awards of $4.2 million in 2022, down about 29 percent year over year. He saw $961,000 in option awards in 2022, according to the filing.

Rosamilia has an annual incentive target of $1.2 million, in line with the annual incentive payouts he received in 2022.

IBM’s Compensation Committee included the following comments about Rosamilia’s 2022 performance:

* “Grew Software revenue 12% at constant currency, with growth through all 4 quarters in 2022”

* “Increased the availability of our software as a service (SaaS) product portfolio across multiple cloud hyperscalers”

* “Delivered organic innovation across the product portfolio and added significant value through strategic acquisitions”

Rosamilia received $385,000 in “all other compensation” in 2022, up about 54 percent year over year.

Rosamilia’s title changed to senior vice president and senior adviser in January, according to his LinkedIn account. In this role, he manages “client and partner engagements” and advises “on strategic projects for the Chairman and CEO.”

He was previously the senior vice president of IBM Software for about a year. He has worked with IBM for almost 40 years, according to his LinkedIn account.

Along with Rosamilia’s retirement, IBM announced an expansion of its executive leadership team and promoted multiple executives.

Rob Thomas was promoted to senior vice president of software and chief commercial officer. Kareem Yusuf became senior vice president of product management and growth for software. Dinesh Nirmal became senior vice president of products for software. Sebastian Krause became senior vice president and CRO.

Ric Lewis became senior vice president of infrastructure and IBM Cloud Platform. Senior Vice President Howard Boville added technology life-cycle services (TLS) to his scope. Paul Papas became senior vice president of IBM Consulting for the Americas.

3. Gary Cohn

IBM Vice Chairman Gary Cohn will receive a salary rate of about $1.2 million starting April 1, according to the filing.

That is in line with the $1.2 million in base salary he received in 2022 and 2021.

His total compensation for 2022 was about $9 million, down about 10 percent year over year.

Cohn saw about $4.7 million in stock awards in 2022, down about 24 percent year over year. He saw about $1 million in option awards in 2022.

His annual incentive target for 2023 is $1.6 million. In 2022, he received about $1.8 million in annual incentive payouts, up about 18 percent year over year.

IBM’s Compensation Committee included the following comments about Cohn’s 2022 performance:

* “Expanded IBM’s public/private partnerships, resulting in additional revenue and broader reach”

* “Developed senior relationships to expand IBM’s presence and brand awareness with strategic clients”

* “Participated in discussions with US and foreign government leaders, media and in other public events to advance IBM’s technology point of view”

All other compensation” for Cohn in 2022 was about $169,000.

Cohn joined IBM in 2021, according to his LinkedIn account. Before joining IBM, Cohn worked as chief economic adviser to former President Donald Trump from 2017 to 2018.

As director of the National Economic Council and assistant to the president for economic policy, Cohn “managed the administration’s economic policy agenda and led the successful effort to grow the US economy, create jobs and increase wages through tax and regulatory reform,” according to his LinkedIn account.

He also served as COO and president of Goldman Sachs from 2006 to 2016.

2. Jim Kavanaugh

IBM CFO Jim Kavanaugh will have a 2023 cash salary rate of about $1 million starting April 1, according to the filing.

That is in line with his 2022 base salary of about $1 million in 2022. That base salary was up about 7 percent year over year.

Kavanaugh’s total compensation for 2022 was $10.1 million, down less than 1 percent year over year, according to the filing.

Kavanaugh saw about $5.8 million worth of stock awards in 2022, down about 22 percent year over year. He saw about $1.3 million worth of option awards in 2022.

His 2023 annual incentive target is about $1.5 million. For 2022, the CFO received about $1.7 million in annual incentive payouts, up about 16 percent year over year.

IBM’s Compensation Committee included the following comments about Kavanaugh’s 2022 performance:

* He “exceeded mid-single digit revenue growth objective by delivering 12% growth “ ignoring foreign exchange.” IBM also saw about “4 points from incremental external sales to Kyndryl.”

* He “optimized portfolio and expanded operating pre-tax margin” and generated “$9.3 billion in consolidated free cash flow,” and that grew $2.8 billion year-to-year”

* He “returned $6 billion to stockholders and invested over $2 billion to acquire eight companies while reducing debt by approximately $1 billion in 2022”

Kavanaugh received $233,000 in “all other compensation” in 2022, another increase of about 16 percent year over year, according to the filing.

Kavanaugh joined IBM in 1996, according to his LinkedIn account. He has been CFO since 2018.

1. Arvind Krishna

IBM Chairman and CEO Arvind Krishna is expected to receive a base salary of $1.5 million in 2023, the same as 2022 and 2021.

His total compensation for 2022 was $16.6 million, down about 5 percent year over year, according to the filing.

Krishna saw $8.9 million in stock awards in 2022, down about 30 percent year over year. He saw about $2 million in option awards in 2022.

His 2023 annual incentive target is $3 million, the same as it was in 2022. His annual incentive payout in 2022 was $3.5 million, up about 18 percent year over year.

IBM’s board included the following comments about Krishna’s 2022 performance:

* “Overall IBM 2022 revenue performance of $60.5 billion and $10.4 billion cash from operations”

* “Consulting revenue grew 15 percent, ignoring foreign exchange. Software revenue grew 12 percent.” That included about “6 points from incremental external sales to Kyndryl”

* “Recurring revenue represents about 50% of IBM revenue,” and Hybrid Platform & Solutions’ annual recurring revenue was more than $13 billion exiting 2022”

* “Delivered $9.3 billion in consolidated free cash flow, with a cash realization of more than 100 percent”

* “Ended 2022 with $8.8 billion in cash and marketable securities, up over $1 billion year-to-year”

* “Closed 8 strategic acquisitions in 2022, focused on strengthening our hybrid cloud capabilities in Software and Consulting”

* “Deployed Osprey 433-Qubit Quantum system, significantly expanding the volume capabilities of the platform”

* “Significant progress toward our goal of reducing IBM’s operational greenhouse gas emissions 65% by 2025, with a 61% reduction to date”

* “Expanded privacy program to add AI impact assessments in response to new AI regulations”

* “Focused hiring, development, and sales investments to fuel growth”

* “Improved diversity across US Black, US Hispanic, and global Women executives”

Krishna received $639,000 in “all other compensation,” up about 26 percent year over year.

Krishna joined IBM in 1990, according to his LinkedIn account. He became CEO in 2020.