Saturday, July 6, 2019

IBM Top-Tier Executives Average Pay Raise Was 9.9% Per Year During the Past 10 Years (2009-2018). It Appears That IBM and Its Board of Directors Are Into Grade Inflation Given How IBM Has Actually Underperformed in the Past Decade. Grade Inflation of the Performance of Top Level Executives Results in Annual Pay Raise Inequality Expansion.

From Company Proxy Statement filings with the SEC, below are the IBM Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years.

IBM is the 26th Dow Industrial Company I have researched so far on Top-Tier Executives Average Long-term % Pay Raises Per Year.   

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages.

Also, the US Government should require all US Corporate Boards to include at least one worker representative. 

I will continue this same research for the 4 remaining Dow Companies (All Technology Cos) and then turn my attention to many other large US Companies to get a better handle on just why the US has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative annual pay raise percentages.


  FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
IBM 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Rometty Chair President and CEO     17,552     18,595     18,595     32,696     32,696     19,822     19,822     19,345     19,345     13,966
Kavanaugh SVP CFO       5,897       4,870  N/A   N/A 
Schroeter SVP IBM Global Markets       7,030       6,472       6,472       6,800       6,800     13,112     13,112       5,113  N/A   N/A 
Kelly EVP       6,415       6,442       6,442       7,291       7,291     13,640     13,640       6,571       6,571       5,695
Clementi SVP       6,174       6,165       6,165       7,040  N/A   N/A     
Jetter SVP IBM Cognitive Sciences & Research  N/A   N/A 
Rhodin SVP IBM Watson Development          N/A   N/A         
van KralingenIBM Global Business Services          N/A   N/A 
Keverian SVP Strategy  N/A   N/A 
Mills EVP Software and Systems       8,270       5,591
Totals     43,068     42,544     37,674     53,827     46,787     46,574     46,574     31,029     34,186     25,252
Annual % Change 1.2% -30.0% 0.5% 50.1% 35.4%
  FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
IBM 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Kelly EVP  N/A   N/A 
Weber SVP Legal and Regulatory  N/A   N/A 
Palmisano Former Chairman          N/A   N/A      31,799     31,719     31,719     24,314     24,314     24,512
Rometty Chair President and CEO     13,966     16,185     16,185       8,342       8,342       6,396       6,396       5,180       5,180       5,660
Loughridge SVP CFO       8,509       8,143       8,143       8,019       8,019       7,181       7,181       6,462       6,462       8,117
Daniels SVP & Services Group Executive               8,089       8,686       8,686       6,686       6,686       5,461       5,461       5,988
Mills EVP Software and Systems       5,591     11,794     11,794       7,373       7,373       6,735       6,735       5,758       5,758       6,196
MacDonald SVP Human Resources  N/A   N/A 
Totals     28,066     36,122     44,211     32,420     64,219     58,717     58,717     47,175     47,175     50,473
Annual % Change -22.3% 36.4% 9.4% 24.5% -6.5%
10 Year Average Per Year % Change 9.9%