"IBM CEO Arvind Krishna received a financial package valued at $38 million in calendar 2025 - equivalent to the average collective pay of 765 Big Blue workers. As the triple crown holder - Chairman, CEO and President - Krishna hit annual and longer term incentive targets, according to IBM's proxy statement. As such, his award leaped compared to the $25.14 million he received in the prior year."
"2025 was seen as a successful year for IBM: revenue grew 8 percent to $67.5 billion, as it shifted to higher growth areas, with over 75 percent of our business mix in Software and Consulting. Software was up 11 percent; hybrid cloud, data and automation grew double digits; and the cumulative GenAI book of business reached upwards of $2 billion."
"Gross margin for the 12 months was 58 percent - reflecting the higher mix of software sales - up 150 basis points or 1.5 percent year-on-year. And in other metrics that govern Krishna's pay, IBM reported $13.2 billion cash from operations and $14.7 billion of free cash flow. It also returned $6 billion to shareholders, and spent $8 billion on ten acquisitions."
IBM CEO Arvind Krishna's 2025 compensation package totaled $38 million, representing a significant increase from $25.14 million in the prior year. His compensation comprised a $1.5 million salary, $24 million in stock awards, $6.6 million in options, and $5.25 million in non-equity incentives. IBM achieved strong financial performance in 2025, with revenue growing 8% to $67.5 billion, driven by software and consulting segments representing over 75% of business mix. Software revenue increased 11%, hybrid cloud and data automation grew double digits, and cumulative GenAI business reached $2 billion. The company generated $13.2 billion in operational cash flow and $14.7 billion in free cash flow. Other executives also received substantial increases: CFO James Kavanaugh earned $18.84 million and Chief Commercial Officer R.D. Thomas received $17.5 million.
#executive-compensation #ibm-financial-performance #ceo-pay-disparity #software-and-consulting-growth #genai-business-expansion
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