Sam Palmisano's bonus nearly doubled and his total pay package grew 30% in 2010, as IBM reported record profit for the year and surpassed the high end of its earnings-per-share goals.
Palmisano, who is chairman, president and CEO of IBM, received compensation worth $31.7 million in 2010, up from $24.3 million in 2009, according to documents filed Monday with the U.S. Securities and Exchange Commission.
Palmisano received a $1.8 million salary, which is equal to the salary he received in 2009. He also took home a performance-based cash bonus of $9 million, which is an 89% increase over the $4.8 million bonus he received in 2009.
On the equity front, Palmisano received stock awards valued at $13.3 million at the time they were granted (down 1% from $13.5 million in 2009).
The value of Palmisano's other compensation and perquisites fell 3% to $1.1 million, which includes: $311,288 for personal use of company-owned aircraft; $55,465 for personal security; $655,000 for company contributions to defined contribution plans; a $14,031 tax reimbursement; and an unspecified amount for personal use of company autos, personal financial planning, family attendance at company-related events, and other personal expenses.
Palmisano's pay package also includes $2.4 million attributed to changes in the value of his retention plan (compared with $1.2 million in 2009) and $4.1 million attributed to changes in the value of his pension plan (compared with $1.9 million in 2009).
The company, meanwhile, grew revenue and profits by 4% and 10%, respectively, in its 2010 fiscal year ended Dec. 31. Revenue came in at $99.9 billion, up from $95.8 billion in 2009. Net income hit $14.8 billion, up from $13.4 billion in the prior year.
IBM also achieved its eighth consecutive year of double-digit EPS growth in 2010. Diluted earnings were $11.52 per share compared with $10.01 per diluted share in 2009, an increase of 15%. In 2007, IBM established an earnings-per-share road map to 2010, setting an EPS objective of $10 to $11 - and it surpassed the high end of that range by 52 cents.
Palmisano's total pay is calculated using data supplied in a proxy statement filed with the SEC on March 7. The following figures are taken from the summary compensation table: salary, stock awards, non-equity incentive place compensation (performance-based cash bonus), change in retention plan value, change in pension value, and all other compensation. The estimated value of equity awards represents the grant date fair value for stock awards and stock options granted during the fiscal year.