IBM bosses give up 2013 bonuses


Virginia Rometty

IBM boss Virginia Rometty and her senior management team are giving up their 2013 bonuses as penance for the technology giant's lacklustre performance.

The decision, disclosed in a regulatory filing yesterday, will result in a substantial pay cut for the executives, whose annual bonuses often exceed their salaries.

As chef executive, Ms Rometty will be the hardest hit. She received a 3.9 million-dollar (£2.3m) bonus in 2012 and was eligible for a four million-dollar (£2.4m) payout last year, although it is unlikely she would have received that much because IBM's financial results did not live up to expectations.

Armonk, New York-based IBM's revenue slipped 5% last year, but the company's earnings dipped by less than 1%, thanks to cost cutting.

Ms Rometty still received a 1.5 million-dollar (£914,000) salary last year.