Despite lackluster performance, IBM's Rometty gets $3.6 million bonus

IBM CEO Virginia Rometty spurned an annual bonus in 2013, disappointed by the company's performance. Despite a lackluster 2014, she'll pocket a $3.6 million bonus for the year.

Bonuses to Rometty and senior managers are coming despite a fiscal year in which net income fell 7% to $15.6 billion, revenue dropped 6% to $92.8 billion and Big Blue ending the year with another black eye - its 11th straight quarter of revenue declines and a year-over-year 14% drop in its shares.

But in a securities filing Friday, Big Blue said Rometty earned a $3.6 million incentive payout, on top of $1.6 million salary, $5 million incentive target and stock worth $13.3 million for 2014. The stock will be paid out in 2018 if Rometty hits performance targets. The company did not detail why bonuses were awarded, but a fuller disclosure about management compensation will be detailed in IBM's 2015 proxy, due out in April.

Rometty, named CEO in 2012, rejected a 2013 bonus for herself and senior management in 2013 "in view of the company's overall full-year results,'' she said. Her overall compensation was valued at $13.9 million, including $1.5 million in pay and $11.7 million in stock awards.

Among other executives, CFO Martin Schroeter will receive a 2014 bonus worth nearly $740,000. Steven Mills, head of software and systems, will get $703,500, senior vice president John Kelly will receive nearly $800,000 and general counsel Robert Weber, now employed as a senior adviser, will pocket $737,000.

Earlier this week, IBM debunked a blogger's claim that it was planning to lay off about 25% of its workforce, or more than 100,000 employees, in 2015.

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