Arvind Krishna, CEO, IBM, received a 23 per cent increase in his total compensation in 2024, taking his earnings to $25 million. This is a significant rise from the $20.3 million he earned in the previous year. His stock awards saw a substantial jump from $11.4 million to $14.8 million, while his base salary remained unchanged at $1.5 million.
The IBM board of directors also approved an annual incentive payment of $3.85 million for Krishna’s 2024 performance. This payout represented 110 per cent of his target opportunity, reflecting the company’s overall performance score.
This comes after IBM reported a strong financial year, with total revenue touching $62.8 billion. The growth was primarily driven by advancements in hybrid cloud technology and artificial intelligence (AI).
A notable aspect of IBM’s report is the CEO-to-employee pay ratio. In 2024, the ratio stood at 518:1. While Krishna earned over $25 million, the median employee salary was $48,582, with a base salary of $43,069. This wide pay gap has again sparked conversations around executive compensation and income disparity, a recurring topic in large corporations.
Despite the discussions around pay inequality, IBM has shown success in retaining its top talent. The company’s attrition rate among high performers was 25 per cent lower than its overall voluntary departure rate. This suggests that IBM has been able to maintain its key employees, contributing to its consistent innovation and business growth.
The company also introduced several technological advancements in 2024. The launch of the IBM Telum II microprocessor and the IBM Spyre Accelerator showcased the company’s focus on delivering high-performance, secure, and energy-efficient solutions. These innovations are expected to play a crucial role in enterprise and AI computing.
