IBM Corp.'s chairman and chief executive, Sam Palmisano, received a compensation package that is calculated to be worth nearly $21 million in 2008, slightly higher than the year before, according to reports.
An analysis of IBM's regulatory filing made on Monday which describes pay packages done by the Associated Press showing that the company's performance was very strong despite the current economic crisis.
IBM's profit jumped 18 percent to $12.3 billion in 2008, boosted by better margins in software and services. Those are two areas where IBM's corporate customers continue to invest as a way to save money, by outsourcing or automating some of their tech chores, like managing payroll.
CEO Palmisano, 57, got $1.8 million in base salary, the same as in 2007. He got a performance-based cash bonus of $5.5 million, which was $500,000 above his target for the year.
His perks totaled $1.4 million. That included $493,881 for expenses incurred on personal travel on the company's private plane, dividend equivalents of $453,397 on restricted stock, and $412,000 in company contributions to defined contribution plans.
Palmisano also got an award of performance-based stock that was valued at $12.2 million when it was granted in May. The number of shares he actually gets will depend on IBM's performance, and they won't be handed out until Feb. 1, 2011, the company said in its filing.
Palmisano's total pay package was valued at $20.97 million in 2008, according to the AP's calculations.
In 2007, his compensation was $20.91 million, and in 2006 it was $18.77 million, also according to the AP's calculations.