International Business Machines Corp. (IBM:US) Chief Executive Officer Ginni Rometty, who took the job in January 2012, earned $16.2 million in compensation last year, including $9.26 million in stock awards.
The total figure was almost double the $8.3 million she made the previous year, when she was a senior vice president in charge of sales at IBM, the company said today in a filing (IBM:US). The pay package included $1.5 million in salary and $3.92 million in non-stock incentive pay.
Rometty has overseen IBM during a period of profit growth, even as sales remain sluggish. The Armonk, New York-based company said in January that earnings would be at least $16.70 a share in 2013, beating analysts’ estimates and sending the stock on its biggest one-day gain in a year.
Rometty runs the ninth-largest company by market value and has emerged as one of the best-paid female leaders in corporate America, topping the level of Meg Whitman and other high-profile CEOs. Whitman earned $15.4 million at Hewlett-Packard Co. in 2012 -- only 70 percent of her targeted compensation because the struggling company missed its goals for the year. PepsiCo Inc.’s Indra Nooyi, meanwhile, received $17.1 million in 2011. Her pay for last year hasn’t been released yet.
Rometty’s pay reflects a bump in incentive compensation that took effect on Oct. 1, the day Rometty added the job of chairman to her duties. When she took on the CEO role earlier in the year, she became IBM’s ninth chief executive and its first female leader, following stints in services, sales, strategy and marketing. During her rise up the ladder, she oversaw the integration of PricewaterhouseCoopers Consulting, helping IBM build a staff of more than 100,000 consultants.
Even with the pay increase, Rometty earned less in 2012 than former IBM CEO Sam Palmisano, who remained chairman until October. He received $37.1 million in total compensation, compared with $31.8 million in 2011, his last year as CEO. Most of his compensation came from a $20 million stock award.
If IBM calls on Palmisano’s expertise after his retirement, he will be paid $20,000 in in consulting fees for days he provides more than four hours of service and $10,000 for days he provides less, IBM said.
IBM shares (IBM:US) fell 0.1 percent to $210.08 today in New York. The stock has climbed 9.7 percent this year.
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