Ben Hunt wrote a blog post on Epsilon Theory titled Once You Buy a Prize, It’s Yours to Keep!

« Outgoing IBM CEO Ginni Rometty has filed 167 SEC Form 4s detailing her stock transactions in the company. So I downloaded and compiled all of them to see how much money she has sucked out of IBM, just like I did for outgoing Boeing CEO Dennis Muilenburg. »

« I’m not even going to count Rometty’s salary and annual cash bonuses… You’ve gotta work hard to fritter away a national treasure like IBM into irrelevance. »

« Over the past fifteen years, Ginni Rometty has acquired or been granted about 850,000 shares of IBM stock (all of this information is publicly available in the SEC Form 4s). Most of this stock was given to her gratis, but she had to pay to exercise some of this as options. The total price paid for all of these shares by Rometty was $25.7 million, which works out to an average price of $30.31 per share. »

«So over the past fifteen years, Ginni Rometty has $84 million in realized stock gains and $42.4 million in unrealized gains, at a cost basis to her of $25.7 million.  That’s $100.7 million. »

« We still haven’t seen the 8-k filing from IBM where they will detail her going-away prize money.  »

Note that Rometty was CEO for 8 years, but Hunt’s numbers span 15 years. According to Wikipedia, “Prior to becoming president and CEO in January 2012, she first joined IBM as a systems engineer in 1981 and subsequently headed global sales, marketing, and strategy.”

So, what sort of exceptional performance deserves justifies this level of compensation? (And to reiterate, Hunt’s calculations exclude tens of millions of dollars in salary, bonuses, and golden parachute.)

Asa Fitch wrote a Wall Street Journal article titled IBM Doubles Down on Cloud Bet With New Leadership Team.

« Incoming CEO Arvind Krishna… takes over a company that has been in transition for almost the entirety of his predecessor Ginni Rometty’s 8-year run in the job. The problems are clear. IBM sales have fallen around 25% in the past 8 years. »

« Hunt also notes: Here’s a fun fact. Did you know that Ginni Rometty was on the board of AIG from 2006 – 2009? You really can’t make this stuff up. No one would believe you. »

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