International Business Machines Corp. (NYSE:IBM) reported in its filing with the Securities and Exchange Commission that it is awarding a bonus worth $3.6 million to CEO Virginia Rometty, as well as bonuses for the company’s senior managers. The Big Blue is awarding the bonuses despite weak performance for the past year, wherein net income declined 7 percent to $15.6 billion, revenue fell 6 percent to $92.8 billion, and shares shed its value 14 percent year-on-year.
International Business Machines Corp. (NYSE:IBM) have been struggling with falling revenues for 11 successive quarters as it is transitioning itself to a cloud services firm, and in 2013, bonuses were withheld at the request of its own executives. The filing with SEC on Friday, however, indicated the restoration of bonuses, naming chief financial officer Martin Schroeter and three senior officers as recipients of lower yearly incentives. Rometty will also receive stocks worth $13.3 million for 2014, which will be paid out by 2018 on condition of achieving targets. An incentive target worth $5 million is also on the slate for 2015. Senior vice president John Kelly will be awarded $800,000 as a bonus for 2014, while Schroeter is receiving $740,000. Senior adviser Robert Weber will have $737,000, while software and systems head Steven Mills will get $703,500.
The filing did not offer any reason for the bonuses, but International Business Machines Corp. (NYSE:IBM) stressed that it is gaining momentum in several areas of its business. It is divesting its less profitable units and re-aligning focus towards cloud, data analytics, and mobile software.
International Business Machines Corp. (NYSE:IBM) shares declined 1.4 percent Friday, closing at $153.31. The company is expecting annual earnings at $15.75 to $16.50 per share, down from the previous expectation of $20 per share for fiscal year 2015.
This article has been written by Nonito Guntan.