SAN FRANCISCO-- The new CEO of International Business Machines Corp. (IBM) has had her salary doubled from $800,000 to $1.5 million according to a regulatory filing.
Virginia Rometty was promoted to the role of IBM CEO at the beginning of the year, from her previous position as senior vice president and group executive for sales, marketing, and strategy. She is the first woman to lead IBM in its 100 year history, and was recently voted seventh in Fortune Magazine’s "50 Most Powerful Women in Business", having made the list seven consecutive times.
An electrical engineer by education, Rometty graduated from the Robert R. McCormick School of Engineering and Applied Science at Northwestern University in 1979 with high honors, receiving a bachelor's degree in computer science and electrical engineering. She went on to work for General Motors, before joining IBM as a systems engineer in 1981.
In addition to her $1.5 million salary, Rometty, 54, will get a cash-incentive target of $3.5 million for 2012, compared with her $1.47 million target bonus in 2011, according to an SEC filing.
To achieve her bonus, Rometty must successfully carry through with IBM’s five-year plan to push software sales to make up half of the company’s earnings. The firm also has plans to zero in on business analysis tools, cloud computing and emerging markets.
Previous CEO and current IBM president Samuel Palmisano received a $6.5 million bonus in 2011.
So, how many people do you know that makes $150,000 a year. I would like that job. A very small percentage makes more than $75,000/year in IBM. That is 20X less or 5% of what the CEO of IBM is making. That is a LOT more than the taxes that she might be paying.
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You know what, I actually hadn't thought about it this way, but you're right.
Bert is also right that it's not, relatively speaking, a huge sum... It's a huge sum to mere mortals like us though. She obviously worked and fought hard to get to where she is, I think she's a role model for many young female engineers, and I applaud her.
Perhaps my view is a bit jaded by the influence in my life of IBM in the 80's and 90's, but it is amazing to me that there are people in many other occupations with much less responsibility and experience who make much more in compensation than the CEO of IBM.
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