BENGALURU: IBM chairman and CEO Arvind Krishna’s compensation rose 23% to $25 million in 2024 compared to $20.3 million he earned in the year-ago period, showed IBM’s 2025 proxy statement.
His compensation saw a huge surge in stock awards which rose to $14.8 million from $11.4 million during the same period. Krishna’s base salary remained the same $1.5 million for two consecutive years. For 2024 performance, IBM’s board approved an annual incentive payment of $3,850,000, which represented 110% of Krishna’s target opportunity and was in line with the company incentive score.
The ratio of the CEO’s pay to that of the median employee’s annual compensation was 518:1. This ratio is based on annual total compensation of $25,143,682 for the CEO and $48,582 for the median employee. The base salary for the median employee was $43,069, the proxy filing showed.
“2024 was a year of change and growth for IBM, and we continued to help our clients and ecosystem partners transform their core operations and thrive through technology innovation. IBM’s core values of innovation, trust and transparency fuel our enduring focus on delivering both stockholder and client value, driving client success, and deploying responsible AI,” he wrote in a letter to shareholders.
Its software revenue grew 9% year-to-year and consulting revenue grew 1% year-to-year at constant currency. In 2024, IBM’s revenue grew 3% in constant currency led by innovation in hybrid cloud and AI. IBM delivered $62.8 billion in revenue, $13.4 billion in cash from operations, and generated $12.7 billion of free cash flow.
IBM said it achieved over $3.5 billion in annual productivity run-rate savings since 2022. During 2024, IBM said it maintained a lower attrition rate among top performers, which was 25% below the overall voluntary attrition, signalling their ability to retain talent for expansion.
During 2024, IBM maintained a significantly lower attrition rate among top performers, which was 25% below the overall voluntary departure rate, showcasing their ability to retain talent for expansion. IBM said it launched many commercial and prototype innovations in AI infrastructure. These include the IBM Telum II microprocessor and the IBM Spyre Accelerator to deliver high-performance, secured, and power-efficient enterprise and AI computing solutions.
During 2024, IBM said it maintained a lower attrition rate among top performers, which was 25% below the overall voluntary attrition, signalling their ability to retain talent for expansion.
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