IBM CEO Arvind Krishna's Pay Rises 23% to $25 million

According to IBM's 2025 proxy statement, chairman and CEO Arvind Krishna's compensation increased 23% to $25 million in 2024, up from $20.3 million the year before.

His compensation increased dramatically, with stock awards rising from $11.4 million to $14.8 million during the same period. Krishna's base salary has remained constant at $1.5 million for the past two years. For 2024 performance, IBM's board approved an annual incentive payment of $3,850,000, which represented 110% of Krishna's target opportunity and was consistent with the company's incentive score.

The CEO's pay ratio to the median employee's annual compensation was 518:1. This ratio is calculated using an annual total compensation of $25,143,682 for the CEO and $48,582 for the median employee. The median employee's base salary was $43,069, according to the proxy filing.

"2024 was a year of change and growth for IBM, as we continued to assist our clients and ecosystem partners in transforming their core operations and thriving through technological innovation. "IBM's core values of innovation, trust, and transparency fuel our ongoing focus on delivering both stockholder and client value, driving client success, and deploying responsible AI," he wrote in a letter to shareholders.

At constant currency, software revenue increased by 9% year on year, while consulting revenue increased by 1%. In 2024, IBM's revenue increased by 3% in constant currency, owing to innovations in hybrid cloud and AI. IBM earned $62.8 billion in revenue, $13.4 billion in cash from operations, and $12.7 billion in free cash flow.

Since 2022, IBM claims to have saved more than $3.5 billion in annual productivity run-rates. During 2024, IBM reported a lower attrition rate among top performers, which was 25% lower than overall voluntary attrition, indicating their ability to retain talent for expansion.

During 2024, IBM had a significantly lower attrition rate among top performers, which was 25% lower than the overall voluntary departure rate, demonstrating their ability to retain talent for growth. IBM said it has launched numerous commercial and prototype innovations in AI infrastructure. These include the IBM Telum II microprocessor and the IBM Spyre Accelerator, which provide high-performance, secure, and power-efficient enterprise and AI computing solutions.

During 2024, IBM reported a lower attrition rate among top performers, which was 25% lower than overall voluntary attrition, indicating their ability to retain talent for expansion.