16 March 2024 – IBM’s chairman and CEO, Arvind Krishna, experienced a significant rise in compensation, with his earnings jumping from $16.5 million to $20 million in 2023, according to the company’s 2024 proxy statement. This surge in earnings reflects the board’s recognition of Krishna’s performance and leadership during the year.
Krishna’s compensation package included an annual incentive payment of $3.5 million, which exceeded the target by 117%. His base salary remained unchanged at $1.5 million, while he received stock awards totaling $11.4 million in 2023.
The compensation committee acknowledged Krishna’s achievements, such as driving strong free cash flow generation, sustainable revenue growth, and optimizing IBM’s portfolio with a focus on high-growth software and consulting revenue. Additionally, Krishna’s personal leadership in advancing AI and quantum computing initiatives was highlighted, along with his contributions to IBM’s high-performance culture and employee engagement.
IBM’s financial performance in 2023 was robust, with revenue reaching $61.9 billion and cash from operations totaling $13.9 billion. The company’s software and consulting revenues grew by 5% and 6% year-on-year, respectively, at constant currency. Furthermore, IBM made significant investments in research, development, and engineering, particularly in hybrid cloud and AI capabilities.
Krishna’s strategic initiatives, including the development of AI capabilities through Watsonx and advancements in governance and regulatory compliance, were instrumental in IBM’s growth and innovation. His leadership in key areas like AI, cloud, and security has been pivotal to the company’s success.
In conclusion
Arvind Krishna’s increased compensation reflects IBM’s acknowledgment of his contributions and achievements in driving the company’s growth and innovation agenda, particularly in the areas of AI, cloud computing, and strategic acquisitions.
