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| Proxy Summary | | | | | 3 | | |
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| IBM Board of Directors | | | | | |||
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| 1. Election of Directors for a Term of One Year | | | | | | | |
| Governance and the Board | | | | | |||
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| Frequently Asked Questions | | | | 79 | | | |
| Appendix A – Non-GAAP Financial Information and Reconciliations | | | | | |||
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| 1. | | | Election of directors proposed by IBM’s Board of Directors for a term of one year, as set forth in this Proxy Statement. | |
| 2. | | | Ratification of the appointment of PricewaterhouseCoopers LLP as IBM’s independent registered public accounting firm. | |
| 3. | | | Advisory vote on executive compensation. | |
| 4. | | | |
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| Date: | | | April | |
| Time: | | | | |
| Virtual Meeting Site: | | | www.virtualshareholdermeeting.com/ | |
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To express our appreciation for your participation, IBM will make a $1 charitable donation to every stockholder account that votes this year. | | ||||
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| Items of Business | | | Board’s recommendation | | | Where to find details | | |||
| 1. | | | Election of | | | FOR all nominees | | | P. | |
| 2. | | | Ratification of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm | | | FOR | | | P. | |
| 3. | | | Advisory Vote on Executive Compensation (Say on Pay) | | | FOR | | | P. | |
| 4. | | | Stockholder Proposal Requesting a Public Report on Lobbying Activities | | | AGAINST | | | P. 70-72 | |
| 5. | | | Stockholder | | | AGAINST | | | P. 72-73 | |
| | | Stockholder Proposal Requesting a Right to | | | AGAINST | | | P. | | |
| | | Stockholder Proposal Requesting a Public Report on | | | AGAINST | | | P. | | |
| 8. | | | Stockholder Proposal Requesting the Adoption of Greenhouse Gas Emissions Targets | | | AGAINST | | | P. 77-78 | |
| What’s new? | | ||||||||
| We continue to enhance our governance, compensation, and sustainability practices and disclosures. Among many other items, since last year, IBM has: • Enhanced our disclosure regarding trade associations • Adopted a director overboarding policy • Continued to publish our annual IBM Impact Report, sharing IBM’s progress towards our corporate responsibility commitments and performance • Continued our | |
| Director | | Age | | Primary Occupation | | Director Since | | | Committee Memberships | | Audit Committee Financial Expert | | Director | | Age | | Primary Occupation | | Director Since | | | Committee Memberships | | Audit Committee Financial Expert | | ||||||||||||||||||||||||||
| Thomas Buberl | | 48 | | Chief Executive Officer, AXA S.A. | | 2020 | | | | | | | | | Marianne C. Brown | | 65 | | Former Chief Operating Officer, Global Financial Solutions, Fidelity National Information Services, Inc. | | 2023 | | | | | | | ||||||||||||||||||||||||
| David N. Farr | | 67 | | Retired Chairman and Chief Executive Officer, Emerson Electric Co. | | 2012 | | | | | | | | | Thomas Buberl | | 50 | | Chief Executive Officer, AXA S.A. | | 2020 | | | | | | | ||||||||||||||||||||||||
| Alex Gorsky | | 61 | | Executive Chairman and Retired Chief Executive Officer, Johnson & Johnson | | 2014 | | | | | | | | | David N. Farr | | 69 | | Retired Chairman and Chief Executive Officer, Emerson Electric Co. | | 2012 | | | | | | | ||||||||||||||||||||||||
| Michelle J. Howard | | 61 | | Retired Admiral, United States Navy | | 2019 | | | | | | | | | Alex Gorsky | | 63 | | Former Chairman and Chief Executive Officer, Johnson & Johnson | | 2014 | | | | | | | ||||||||||||||||||||||||
| Arvind Krishna | | 59 | | Chairman and Chief Executive Officer, IBM | | 2020 | | | | | | | | | Michelle J. Howard | | 63 | | Retired Admiral, United States Navy | | 2019 | | | | | | | ||||||||||||||||||||||||
| Andrew N. Liveris | | 67 | | Retired Chairman and Chief Executive Officer, The Dow Chemical Company | | 2010 | | | | | | | | | Arvind Krishna | | 61 | | Chairman and Chief Executive Officer, IBM | | 2020 | | | | | | | ||||||||||||||||||||||||
| F. William McNabb III | | 64 | | Retired Chairman and Chief Executive Officer, The Vanguard Group, Inc. | | 2019 | | | | | | | | | Andrew N. Liveris | | 69 | | Retired Chairman and Chief Executive Officer, The Dow Chemical Company | | 2010 | | | | | | | ||||||||||||||||||||||||
| Martha E. Pollack | | 63 | | President, Cornell University | | 2019 | | | | | | | | | F. William McNabb III | | 66 | | Retired Chairman and Chief Executive Officer, The Vanguard Group, Inc. | | 2019 | | | | | | | ||||||||||||||||||||||||
| Joseph R. Swedish | | 70 | | Retired Chairman, President and Chief Executive Officer, Anthem, Inc. | | 2017 | | | | | | | | | Michael Miebach | | 56 | | Chief Executive Officer, Mastercard Incorporated | | 2023 | | | | | | | ||||||||||||||||||||||||
| Peter R. Voser | | 63 | | Retired Chief Executive Officer, Royal Dutch Shell plc, and Chairman, ABB Ltd. | | 2015 | | | | | | | | | Martha E. Pollack | | 65 | | President, Cornell University | | 2019 | | | | | | | ||||||||||||||||||||||||
| Frederick H. Waddell | | 68 | | Retired Chairman and Chief Executive Officer, Northern Trust Corporation | | 2017 | | | | | | | | | Peter R. Voser | | 65 | | Retired Chief Executive Officer, Royal Dutch Shell plc, and Chairman, ABB Ltd. | | 2015 | | | | | | | ||||||||||||||||||||||||
| Alfred W. Zollar | | 67 | | Executive Advisor, Siris Capital Group, LLC | | 2021 | | | | | | | | | Frederick H. Waddell | | 70 | | Retired Chairman and Chief Executive Officer, Northern Trust Corporation | | 2017 | | | | | | | ||||||||||||||||||||||||
| | | | | Number of meetings held in 2021 | | | 11 | | 8 | | 7 | | 0 | | | | | Alfred W. Zollar | | 69 | | Executive Advisor, Siris Capital Group, LLC | | 2021 | | | | | | | |||||||||||||||||||||
| | | | | Number of meetings held in 2023 | | 10 | | 4 | | 8 | | 0 | | | |
| Audit: | | | | |
| Directors and Corporate Governance: | | | | |
| Executive Compensation and Management Resources: | | | | |
| Executive: | | | | |
| Audit Committee Financial Expert: | | | |
| 2019 | | | | 2020 | | | | 2021 | | | | 2023 | | ||||||||||||||||
| Michelle J. Howard | | | | F. William McNabb III | | | | Martha E. Pollack | | | | Thomas Buberl | | | | Arvind Krishna | | | | Alfred W. Zollar | | | | Michael Miebach | | | | Marianne C. Brown | |
| Policy expertise and technology experience with a cybersecurity focus | | | | Global business, corporate governance and technology experience | | | | Research leadership and technology experience, including artificial intelligence | | | | Global business experience and expertise leading digital transformations | | | | Global business and organizational leadership experience and deep technology expertise | | | | Deep technology experience in systems and software | | | | Global business and technology experience, including digital transformation, cybersecurity and data-driven insights | | | | Global business and technology experience, including financial services, systems, and software | |
| Robust Engagement and Dialogue | |
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| IBM also engaged in investor dialogue related to strategy at 14 sell-side hosted conferences, reaching large audiences, along with individual investor and group engagements throughout the year. | | | | | Robust Conversations IBM customizes its engagements by aligning discussion topics with stockholders’ areas of interest, ensuring that stockholders have an opportunity for an open dialogue with the Company, including appropriate subject matter experts. This year, the topics stockholders expressed interest in learning more about included: responsible AI; IBM’s annual Impact Report; policies and practices regarding board diversity; and human capital management. | |
| OUTCOMES OF ENGAGEMENT | | ||||||
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| Board and Governance Enhanced our disclosure regarding trade associations • Adopted a director overboarding policy • Continued focus on Board diversity with 3 women directors and 3 ethnically diverse directors added in the last 5 years • Active Board refreshment with over 60% of the Board new in the last 5 years | | | Executive Compensation • Continued our Annual Incentive Program and Performance Share Unit metrics that were established in 2021, reflecting IBM’s continued focus on revenue and free cash flow to align with shareholder value • | |
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Corporate Responsibility | |||||
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Published our • • Continued pursuit of our goals to use more renewable electricity, reduce our greenhouse gas emissions, offer more energy efficient products and services, and achieve net zero operational greenhouse gas emissions by 2030 | |
| What We Do | | |||
| | | Tie a significant portion of pay to Company performance | | |
| | | Mitigate risk taking by emphasizing long-term equity incentives, placing caps on potential payments, and maintaining robust clawback provisions | | |
| | | Require significant share ownership by the Chairman and CEO, Vice Chairman and Senior Vice Presidents | | |
| | | Utilize noncompetition and nonsolicitation agreements for senior executives | | |
| | | Remove impact of share repurchase on executive incentives | ||
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| What We Don’t Do | | |||
| | | No individual severance or change-in-control agreements for executive officers | | |
| | | No excise tax gross-ups for executive officers | | |
| | | No dividend equivalents on unearned RSUs/PSUs | | |
| | | No hedging/pledging of IBM stock | | |
| | | No stock option repricing, exchanges or stock options granted below market value | | |
| | | No guaranteed incentive payouts for executive officers | | |
| | | No accelerated vesting of equity awards for executive officers | | |
| | | No above-market returns on deferred compensation plans | |
| | The Committee and the Board identify candidates through a variety of means, including: | | | |||
| | • recommendations from members of the Committee and the full Board • information the Committee requests from the Secretary of IBM | | | • suggestions from IBM management • a third-party search firm, from time to time | | |
| Director | | | Brown | | | Buberl | | | Farr | | | Gorsky | | | Howard | | | Krishna | | | Liveris | | | McNabb III | | | Miebach | | | Pollack | | | Voser | | | Frederick H. Waddell | | | Alfred W. Zollar | | ||||||||||||||||||||
| Client Industry Expertise | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| Organizational Leadership and Management | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| Global Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| CFO | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| Specific Risk Oversight/ Risk Management Exposure | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| Technology, Cybersecurity or Digital | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| Academia | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
| Government/ Regulatory, Business Associations or Public Policy | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| Public Board | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||
| Gender Identity | | | | | Male | | | Male | | | Male | | | Female | | | Male | | | Male | | | Male | | | Male | | | Female | | | Male | | | Male | | | Male | | |||||||||||||||||||||
| Race and/or Ethnicity | | | White/ | Caucasian | | | White/ | Caucasian | | | White/Caucasian | | | White/ Caucasian | | | Black/African American | | | Asian/Pacific Islander | | | White/ | Caucasian | | | White/ | Caucasian | | | White/ | Caucasian | | | White/ | Caucasian | | | White/ | Caucasian | | | White/ | Caucasian | | | Black/African American | | ||||||||||||
| Born Outside the U.S. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Healthcare | | | | | | | | Manufacturing | | ||
| | | Energy | | | | | | | | Information Technology | | ||
| | | Government | | | | | | | | Research & Development | | ||
| | | Financial Services & Insurance | | | | | | | | Chemicals | |
| | | Former Chief Director since: Age: | | ||||
| | | Directors and Corporate Governance | | ||||
| | |
| | | Thomas Buberl Chief Executive Officer, AXA S.A., a multinational insurance firm Director since:2020 Age: 50 Committee: | | ||||
| | | Executive Compensation and Management Resources | | ||||
| | |
| | | David N. Farr Retired Chairman and Chief Executive Officer, Emerson Electric Co., a diversified manufacturing and technology company Director since: 2012 Age: | | ||||
| | | Audit | | ||||
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| | | Alex Gorsky Director since: 2014 Age: | | ||||
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| | Executive | | |||||
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| | | Michelle Howard Retired Admiral, United States Navy Director since: 2019 Age: Committee: | | ||||
| | | Audit | | ||||
| | |
| | | Arvind Krishna Chairman and Chief Executive Officer, IBM Director since: 2020 Age: | | ||||
| | | Executive (Chair) | | ||||
| | |
| | | Andrew N. Liveris Retired Chairman and Chief Executive Officer, The Dow Chemical Company, a materials, polymer, chemicals, and biological sciences enterprise Director since:2010 Age: Committees: | | ||||
| | | Directors and Corporate Governance (Chair) | | ||||
| | | Executive | |
| | | Frederick William McNabb III Retired Chairman and Chief Executive Officer, The Vanguard Group, Inc., one of the world’s largest investment management companies Director since: 2019 Age: | | ||||
| | | Audit | | ||||
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| | | Michael Miebach Chief Executive Officer, Mastercard Incorporated Director since: 2023 Age: 56 Committee: | | ||||
| | | Directors and Corporate Governance | | ||||
| | |
| | | Martha E. Pollack President, Cornell University, a leading research university that creates new technologies and achieves fundamental breakthroughs in understanding and improving lives around the world Director since:2019 Age: | | ||||
| | | Executive Compensation and Management Resources | | ||||
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Peter R. Voser Retired Chief Executive Officer, Royal Dutch Shell plc, a global group of energy and petrochemical companies; Chairman, ABB Ltd., a global group of power and automation companies Director since:2015 Age: Committees: | | |||||||
| | | Audit (Chair) | | ||||
| | | Executive | |
| | | Frederick H. Waddell Retired Chairman and Chief Executive Officer, Northern Trust Corporation, a financial services company Director since: 2017 Age: Committees: | | ||||
| | | Executive Compensation and Management Resources (Chair) | | ||||
| | | Executive | | ||||
| | | Alfred W. Zollar Executive Advisor, Siris Capital Group LLC, a private equity firm Director since:2021 Age: | | ||||
| | | Directors and Corporate Governance | | ||||
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| | | THE BOARD RECOMMENDS YOU VOTE FOR EACH OF THE NOMINEES INTRODUCED ABOVE. | |
| Executive Committee | | |||||||||
| | | The Executive Committee is empowered to act for the full Board in intervals between Board meetings, with the exception of certain matters that by law may not be delegated. The Committee meets as necessary, and all actions by the Committee are reported at the next Board of Directors meeting. The Committee did not meet in | | |||||||
| Members: | | | Arvind Krishna (Chair) Alex Gorsky Andrew N. Liveris Peter R. Voser Frederick H. Waddell | | | Number of meetings in | |
| Audit Committee | | ||||||||||||
| Members: Peter R. Voser (Chair) David N. Farr Michelle J. Howard F. William McNabb III Audit Committee Financial Experts: David N. Farr Michelle J. Howard F. William McNabb III Peter R. Voser Number of meetings in | | | Key Responsibilities: The Audit Committee is responsible for reviewing reports of IBM’s financial results, audit results, internal controls, and adherence to IBM’s Business Conduct Guidelines in compliance with applicable laws and regulations, including federal procurement requirements. Concurrent with that responsibility, set out more fully in | | |||||||||
| • selecting the independent registered public accounting firm and reviewing its selection with the Board; • annually preapproving the proposed services to be provided by the accounting firm during the year; • receiving and discussing reports relating to key controls and processes, including | | | • reviewing the procedures of the independent registered public accounting firm for ensuring its independence with respect to the services performed for IBM; • meeting with management prior to each quarterly earnings • regular private sessions with senior management, including IBM’s Chief Trust and Compliance Officer. | | |||||||||
| The Audit Committee chair, pursuant to authority delegated by the Audit Committee, may approve engagements with the independent registered public accounting firm that are outside the scope of the services and fees approved by the Committee, which are later presented to the Committee. The Board has determined that each member of the Committee qualifies as an Audit Committee Financial Expert as defined by the rules of the SEC. Charter: http://www.ibm.com/investor/att/pdf/auditcomcharter.pdf | |
| Directors and Corporate Governance Committee | | ||||||||||||
| Members: Andrew N. Liveris (Chair) Marianne C. Brown Michael Miebach Alfred W. Zollar Number of meetings in 2023: 4 | | | Key Responsibilities: The Directors and Corporate Governance Committee is devoted primarily to the continuing review and articulation of the governance structure and practices of the Board. Concurrent with that responsibility, set out more fully in | | |||||||||
| • recommending qualified candidates to the Board for election as directors of IBM, including the slate of directors that the Board proposes for annual election by stockholders at the • advising and making recommendations to the Board on all matters concerning directorship practices, and on the function and duties of the committees of the Board; • making recommendations to the Board on compensation for non-management directors; | | | • • reviewing and considering stockholder proposals, including those dealing with issues of public and social interest. | | |||||||||
| As discussed above, the Committee is responsible for recommending qualified candidates to the Board for election as directors of IBM. The Committee recommends candidates based on their business or professional experience, the diversity of their background (including gender and ethnic diversity), and their talents and perspectives. Charter: https://www.ibm.com/investor/att/pdf/IBM-Directors-and-Corporate-Governance-Committee-Charter.pdf | |
| Executive Compensation and Management Resources Committee | | ||||||||||||
| Members: (Chair) Thomas Buberl Martha E. Pollack Number of meetings in | | | Key Responsibilities: The Executive Compensation and Management Resources Committee has responsibility for defining and articulating IBM’s overall executive compensation philosophy, and administering and approving all elements of compensation for elected corporate officers. Concurrent with that responsibility, set out more fully in | | |||||||||
| • reviewing and approving the corporate goals and objectives relevant to the Chairman and CEO’s compensation, evaluating performance in light of those goals and objectives and, together with the other independent directors, determining and approving the Chairman and CEO’s compensation based on this evaluation; • reviewing IBM’s human capital management, diversity and inclusion and other management resources programs, including overseeing, along with the full Board, the succession-planning process of the CEO and other senior management positions; | | | • approving, by direct action or through delegation, participation in and all awards, grants, and related actions under IBM’s various equity plans; • reviewing the compensation structure for IBM’s officers and providing oversight of management’s decisions regarding performance and compensation of other employees; and • monitoring compliance with stock ownership guidelines. | | |||||||||
| The Committee reports to stockholders as required by the SEC (see Members of the Committee are not eligible to participate in any of the plans or programs that the Committee administers. Charter: https://www.ibm.com/investor/att/pdf/ | |
| Under the IBM Board Corporate Governance Guidelines, the Directors and Corporate Governance Committee and the full Board annually review the financial and other relationships between the independent directors and IBM as part of the assessment of director independence. The Directors and Corporate Governance Committee makes recommendations to the Board about the independence of non-management directors, and the Board determines whether those directors are independent. In addition to this annual assessment, director independence is monitored by the Directors and Corporate Governance Committee and the full Board on an ongoing basis. | | | |
| The Board strongly believes that each company’s circumstances dictate its optimal leadership structure, and the current leadership structure strikes the right balance of allowing our Chairman and CEO to promote a clear, unified vision for the Company’s strategy, providing the leadership critical for effectively and efficiently implementing the actions needed to ensure strong performance over the long term, while ensuring robust, independent oversight by the Board and Lead Director. | |
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| | | | As Lead Director, Mr. Gorsky approves information sent to the Board; reviews and approves meeting schedules to ensure there is sufficient time for discussion of all agenda items; presides at all meetings of the Board at which the Chairman is not present, including executive sessions of the independent directors, which are held at every Board meeting; serves as liaison between the Chairman and the independent directors; if requested by major stockholders, | | | | | | In addition to these core responsibilities, the Lead Director engages in other regular activities, including: one-on-one debriefs with the Chairman after each meeting; regular contact with members of the Board and meeting individually with each independent director; and | | | | |
| | |
| The | |
| | | Full Board Self-Evaluation | |
| | | Each Individual Committee has Self-Evaluation | |
| | | |
| | | Presentation of Feedback | |
| | | Results Discussion | |
| | | Follow-ups | |
| | In succession planning, the Board discusses: | | | |||
| | • Succession process and timeline • Profile and candidate assessments, both internal and external, for the CEO and other senior leadership positions | | | • Leadership pipeline and development plans for the next generation of senior leadership • Diversity, inclusion, and Company culture | | |
| | The Executive Compensation and Management Resources Committee also regularly reviews succession planning and the Company’s management resources programs, overseeing a broad range of human capital management topics, including diversity and inclusion. | | |
| | | Cybersecurity is a critical part of risk management at IBM. To more effectively address cybersecurity threats, IBM leverages a multi-layered approach. IBM has a dedicated Chief Information Security Officer (CISO) whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture, and processes. The CISO is Both the Board and the Audit Committee each receive regular updates from senior management, including the CISO and cybersecurity experts, in areas such as threat intelligence, major cyber risk areas, emerging global policies and regulations, cybersecurity technologies and best practices, and cybersecurity incidents. | | |
| | | Climate change is a serious concern that warrants meaningful action on a global basis. IBM considers risks as identified by the Financial Stability Board Task Force on Climate-related Financial Disclosures IBM has established objectives and targets for energy conservation, procurement of renewable energy, carbon dioxide (CO2) emissions reduction and other key environmental performance indicators. Performance against these objectives and targets is routinely monitored, and results are reviewed annually by the Board’s Directors and Corporate Governance Committee. Details on IBM’s performance against key environmental performance indicators can be found in our annual | |
| Name | | Fees Earned or Paid in Cash ($) | | All Other Compensation ($) | | Total ($) | | Name | | Fees Earned or Paid in Cash ($) | | All Other Compensation ($) | | Total ($) | | ||||||||||||||||||||||||
| (a) | | (b) | | (c) | (1) | | (d) | | (a) | | (b) | | (c) | (1) | | (d) | | ||||||||||||||||||||||
| Thomas Buberl | | | | 325,000 | | | | | 38,901 | | | | | 363,901 | | | Marianne C. Brown(2) | | | | 19,444 | | | | | 6 | | | | | 19,450 | | | ||||||
| Michael L. Eskew | | | | 395,000 | | | | | 539,632 | | | | | 934,632 | | | Thomas Buberl | | | | 350,000 | | | | | 55,278 | | | | | 405,278 | | | ||||||
| David N. Farr | | | | 325,000 | | | | | 162,671 | | | | | 487,671 | | | David N. Farr | | | | 350,000 | | | | | 119,333 | | | | | 469,333 | | | ||||||
| Alex Gorsky | | | | 345,000 | | | | | 219,084 | | | | | 564,084 | | | Alex Gorsky | | | | 400,000 | | | | | 169,758 | | | | | 569,758 | | | ||||||
| Michelle J. Howard | | | | 325,000 | | | | | 69,668 | | | | | 394,668 | | | Michelle J. Howard | | | | 350,000 | | | | | 71,134 | | | | | 421,134 | | | ||||||
| Andrew N. Liveris | | | | 325,000 | | | | | 323,856 | | | | | 648,856 | | | Andrew N. Liveris | | | | 370,000 | | | | | 232,313 | | | | | 602,313 | | | ||||||
| F. William McNabb III | | | | 325,000 | | | | | 56,698 | | | | | 381,698 | | | F. William McNabb III | | | | 350,000 | | | | | 66,257 | | | | | 416,257 | | | ||||||
| Martha E. Pollack | | | | 325,000 | | | | | 80,046 | | | | | 405,046 | | | Michael Miebach(3) | | | | 59,306 | | | | | 13 | | | | | 59,319 | | | ||||||
| Joseph R. Swedish | | | | 325,000 | | | | | 79,086 | | | | | 404,086 | | | Martha E. Pollack | | | | 350,000 | | | | | 80,662 | | | | | 430,662 | | | ||||||
| Sidney Taurel(2) | | | | 81,250 | | | | | 76,358 | | | | | 157,608 | | | Joseph R. Swedish | | | | 350,000 | | | | | 80,069 | | | | | 430,069 | | | ||||||
| Peter R. Voser | | | | 325,000 | | | | | 205,490 | | | | | 530,490 | | | Peter R. Voser | | | | 380,000 | | | | | 159,908 | | | | | 539,908 | | | ||||||
| Frederick H. Waddell | | | | 345,000 | | | | | 133,815 | | | | | 478,815 | | | Frederick H. Waddell | | | | 370,000 | | | | | 117,058 | | | | | 487,058 | | | ||||||
| Alfred W. Zollar(3) | | | | 59,583 | | | | | 13 | | | | | 59,596 | | | Alfred W. Zollar | | | | 350,000 | | | | | 26,740 | | | | | 376,740 | | |
| Name and address | | Number of Shares Beneficially Owned | | Percent of Class | | Name and address | | Number of Shares Beneficially Owned | | Percent of Class | | ||||||||||
| The Vanguard Group(1) 100 Vanguard Boulevard Malvern, PA 19355 | | | | 75,553,655 | | | 8.42% | | The Vanguard Group(1) 100 Vanguard Boulevard Malvern, PA 19355 | | | | 82,604,056 | | | 9.05% | | ||||
| BlackRock Inc.(2) 55 East 52nd Street New York, NY 10055 | | | | 65,452,374 | | | 7.3% | | BlackRock Inc.(2) 50 Hudson Yards New York, NY 10001 | | | | 75,479,656 | | | 8.3% | | ||||
| State Street Corporation(3) State Street Financial Center One Lincoln Street Boston, MA 02111 | | | | 53,156,014 | | | 5.93% | | State Street Corporation(3) State Street Financial Center 1 Congress Street, Suite 1 Boston, MA 02114 | | | | 55,035,821 | | | 6.03% | |
| | | | | | | | | | | | | | | Acquirable within 60 days | | | Value of Common Stock shares at Fiscal Year End | | | | | | | | | | | | | | Acquirable within 60 days | | | Value of Common Stock shares at Fiscal Year End | | ||||||||||||||||||||||||||||
| Common | | Stock-based | | Stock Options And | | Directors’ DCEAP | | | | Common | | Stock-based | | Options And | | Directors’ DCEAP | | ||||||||||||||||||||||||||||||||||||||||||||||
| Name | | Stock | (1) | | Holdings | (2) | | RSUs | (3) | | Shares | (4) | | ($) | (5) | Name | | Stock | (1) | | Holdings | (2) | | RSUs | (3) | | Shares | (4) | | ($) | (5) | ||||||||||||||||||||||||||||||||
| Michelle H. Browdy | | | | 86,068 | | | | | 119,804 | | | | | 0 | | | | | N/A | | | | | 11,503,849 | | | Michelle H. Browdy | | | | 119,442 | | | | | 147,997 | | | | | 30,898 | | | | | N/A | | | | | 19,534,739 | | | ||||||||||
| Thomas Buberl | | | | 0 | | | | | 0 | | | | | 0 | | | | | 4,470 | | | | | 597,460 | | | Marianne C. Brown(6) | | | | 440(7) | | | | | 440 | | | | | 0 | | | | | 119 | | | | | 91,424 | | | ||||||||||
| Gary Cohn | | | | 14,350 | | | | | 85,311 | | | | | 5,112 | | | | | N/A | | | | | 1,918,021 | | | Thomas Buberl | | | | 0 | | | | | 0 | | | | | 0 | | | | | 10,062 | | | | | 1,645,640 | | | ||||||||||
| Michael L. Eskew | | | | 0 | | | | | 0 | | | | | 0 | | | | | 48,260 | | | | | 6,450,432 | | | Gary D. Cohn | | | | 52,958 | | | | | 81,799 | | | | | 45,162 | | | | | N/A | | | | | 8,661,281 | | | ||||||||||
| David N. Farr | | | | 7,508 (6) | | | | | 7,508 | | | | | 0 | | | | | 14,799 | | | | | 2,981,554 | | | David N. Farr | | | | 8,508(8) | | | | | 8,508 | | | | | 0 | | | | | 19,438 | | | | | 4,570,568 | | | ||||||||||
| Alex Gorsky | | | | 4,445 | | | | | 4,445 | | | | | 0 | | | | | 20,210 | | | | | 3,295,387 | | | Alex Gorsky | | | | 4,444 | | | | | 4,444 | | | | | 0 | | | | | 28,028 | | | | | 5,310,796 | | | ||||||||||
| Michelle J. Howard | | | | 144 | | | | | 144 | | | | | 0 | | | | | 7,037 | | | | | 959,812 | | | Michelle J. Howard | | | | 144 | | | | | 144 | | | | | 0 | | | | | 12,370 | | | | | 2,046,665 | | | ||||||||||
| James J. Kavanaugh | | | | 94,018(7) | | | | | 151,573 | | | | | 0 | | | | | N/A | | | | | 12,566,446 | | | James J. Kavanaugh | | | | 98,395(9) | | | | | 148,834 | | | | | 52,050 | | | | | N/A | | | | | 16,092,502 | | | ||||||||||
| Arvind Krishna | | | | 118,691(8) | | | | | 278,100 | | | | | 0 | | | | | N/A | | | | | 15,864,239 | | | Arvind Krishna | | | | 307,431(10) | | | | | 393,302 | | | | | 84,150 | | | | | N/A | | | | | 50,280,340 | | | ||||||||||
| Andrew N. Liveris | | | | 2,655 | | | | | 2,655 | | | | | 0 | | | | | 29,256 | | | | | 4,265,224 | | | Andrew N. Liveris | | | | 2,655 | | | | | 2,655 | | | | | 0 | | | | | 37,598 | | | | | 6,583,378 | | | ||||||||||
| F. William McNabb III | | | | 9,250 | | | | | 9,250 | | | | | 0 | | | | | 6,018 | | | | | 2,040,721 | | | F. William McNabb III | | | | 9,250 | | | | | 9,250 | | | | | 0 | | | | | 11,764 | | | | | 3,436,840 | | | ||||||||||
| Martha E. Pollack | | | | 0 | | | | | 0 | | | | | 0 | | | | | 8,049 | | | | | 1,075,829 | | | Michael Miebach(6) | | | | 0 | | | | | 0 | | | | | 0 | | | | | 363 | | | | | 59,369 | | | ||||||||||
| Thomas W. Rosamilia | | | | 17,831 | | | | | 82,549 | | | | | 0 | | | | | N/A | | | | | 2,383,291 | | | Martha E. Pollack | | | | 0 | | | | | 0 | | | | | 0 | | | | | 13,998 | | | | | 2,289,373 | | | ||||||||||
| Joseph R. Swedish | | | | 5,261(9) | | | | | 5,261 | | | | | 0 | | | | | 7,965 | | | | | 1,767,787 | | | Joseph R. Swedish | | | | 5,261(11) | | | | | 5,261 | | | | | 0 | | | | | 13,906 | | | | | 3,134,763 | | | ||||||||||
| Peter R. Voser | | | | 0 | | | | | 0 | | | | | 0 | | | | | 18,960 | | | | | 2,534,194 | | | Robert D. Thomas | | | | 33,482(12) | | | | | 101,177 | | | | | 64,896 | | | | | N/A | | | | | 5,475,981 | | | ||||||||||
| Frederick H. Waddell | | | | 3,763 | | | | | 3,763 | | | | | 0 | | | | | 11,923 | | | | | 2,096,591 | | | Peter R. Voser | | | | 0 | | | | | 0 | | | | | 0 | | | | | 26,414 | | | | | 4,320,010 | | | ||||||||||
| Alfred W. Zollar | | | | 0 | | | | | 0 | | | | | 0 | | | | | 446 | | | | | 59,612 | | | Frederick H. Waddell | | | | 3,763 | | | | | 3,763 | | | | | 0 | | | | | 18,564 | | | | | 3,651,581 | | | ||||||||||
| Directors and executive officers as a group | | | | 385,663(10) | | | | | 826,554 | | | | | 5,112(10) | | | | | 177,393(10) | | | | | | | | Alfred W. Zollar | | | | 0 | | | | | 0 | | | | | 0 | | | | | 5,637 | | | | | 921,931 | | | ||||||||||
| Directors and executive officers as a group | | | | 674,703(13) | | | | | 961,796 | | | | | 302,662(13) | | | | | 198,261(13) | | | | | 142,773,263 | | |
| Ethical Impact | | Equitable Impact | | | Environmental Impact | | |
| Creating innovations, policies and practices that prioritize ethics, trust, transparency, and above all — accountability | | | Creating spaces and opportunities for | | | Creating better pathways to | |
| | | Political Contributions | |
| | IBM engages in policy, not politics. In 1968, former IBM CEO Thomas Watson Jr. said a company “should not try to function as a political organization in any way.” IBM continues to live by this philosophy to this day. We have a long-standing policy not to make contributions of any kind (money, employee time, goods or services), directly or indirectly, to political parties or candidates, including through intermediary organizations, such as PACs, campaign funds, or trade or industry associations. This policy applies equally in all countries and across all levels of | |
|
| | | Lobbying | |
| | IBM’s Government and Regulatory Affairs team is committed to advancing common sense public policies that benefit our business and communities. We seek to build trust in technology through precision regulation, a modernized digital infrastructure, promoting justice and equality for all citizens, and leveraging science and technology for good. All IBM lobbying activities, including by third parties on behalf of IBM, require the prior approval of the IBM Office of Government and Regulatory Affairs and must comply with applicable law and IBM’s Business Conduct Guidelines. | |
IBM files periodic reports with the Secretary of the U.S. Senate and the Clerk of the U.S. House of Representatives detailing its U.S. federal lobbying activities and expenditures, with U.S. state and municipal governments, where required, and with the European Union Transparency Register. | |
| | | Trade Associations | |
| | IBM joins trade and industry associations that add value to IBM, its stockholders and employees. These groups have many members from a wide variety of industries, and cover broad sets of public policy and industry issues. Although IBM works to make our voice heard, there may be occasions where our views on an issue differ from those of a particular association. We perform comprehensive due diligence on all of our trade associations to confirm they are reputable and have no history of malfeasance. Company policy prohibits them from using any IBM funds to engage in political expenditures, and we implement robust procedures to ensure they comply. Please visit https://www.ibm.com/policy/philosophy-and-governance-new/ for a list of the trade associations that we support, through annual payments of $50,000 or higher, that are directly engaged in U. S. lobbying. | |
| | The IBM Board of Directors, as part of its oversight function, periodically receives reports from senior management relating to IBM’s policies and practices regarding governmental relations, public policy, and any associated expenditures. | |
| | IBM’s senior management, under the leadership of IBM Government and Regulatory Affairs, closely monitors and coordinates all public policy advocacy efforts, as well as any lobbying activities. | |
| | IBM is proud to report that the Center for Political Accountability’s | |
| In delivered $ generated $ |
| | | | Revenue Generation Revenue year-to-year growth figures at constant currency.(1) | |
Optimized Portfolio Positioned to Deliver High Value | | | | | | Recurring Revenue Acceleration | |
IBM continues to strengthen and reinforce its position in delivering high-value, differentiated technology to its clients | | | | | | About 50% of IBM revenue is recurring, with a high-value mix | |
| 2023 Revenue Mix | | | 2023 Recurring Revenue Mix | | ||||||
| | | Increased revenue mix due to higher growth Software revenue Consulting revenue |
| | | | 67% of recurring revenue now comes from high-growth Software | |
| Completed $5B, and invested nearly $7B in RD&Ein | | | | through dividends in | | | | marketable securities, up over $ | |
| For | | | |
| Feedback from Our Investors Continues to Inform the Committee | |
| • IBM once again offered year-round robust engagement to our stockholders, reaching out to over 125 institutions and hundreds of thousands of individual registered and beneficial owners leading up to the 2023 Annual Meeting and then offering off-season engagement to stockholders owning more than 57% of the shares that voted on Say on Pay in 2023. • Our stockholder discussions and formal 2023 Say on Pay vote reaffirmed investor support of our pay practices. | |
| | To that end, IBM’s executive compensation practices are designed specifically to meet five key objectives: | | | |||
| | • Align the interests of IBM’s leaders with those of our investors by varying compensation based on both long-term and annual business results and delivering a large portion of the total pay opportunity in IBM stock; • Balance rewards for both short-term results and the long-term strategic decisions needed to ensure sustained business performance over time; | | | • Attract and retain the highly qualified senior leaders needed to drive a global enterprise to succeed in today’s highly competitive marketplace; • Motivate our leaders to deliver a high degree of business performance without encouraging excessive risk taking; and • Differentiate rewards to reflect individual and team performance. | | |
| Type | | | Component | | | Key Characteristics | |
| | Current Year Performance | | | | Salary | | | Salary is a market-competitive, fixed level of compensation. | | |
| Annual Incentive Program (AIP) | | | At target, annual incentive provides a market-competitive total cash opportunity. Actual annual incentive payments are funded by business performance against financial metrics and distributed based on annual performance scores, with top performers typically earning the greatest payouts and the lowest performers earning no incentive payouts. | | | |||||
| | Long-Term Incentive | | | | Performance Share Units (PSUs) | | | For PSUs, the number of units granted can be increased or decreased at the end of the three-year performance period based on IBM’s performance against predetermined | | |
| Restricted Stock Units (RSUs) | | | RSUs vest over time; typically ratably over four years. | | | |||||
| Stock Options | | | | | ||||||
| | Annual Incentive Program (AIP) | | | ||||||||||||
| | Revenue | | | | Operating Cash Flow* | | | ||||||||
| | | | | Measures total revenue performance across the portfolio of business | | | | | | | Measures our ability to reinvest and return value to shareholders | | | ||
| | Diversity Modifier: Affirms management’s commitment to diverse representation in our workforce that reflects the labor pool demographics of the communities in which we operate. | | |
| | Performance Share Unit (PSU) Program(1) | | | ||||||||||||||||||||
| | Revenue | | | | Operating EPS* | | | | Free Cash Flow* | | | ||||||||||||
| | | | | Measures revenue performance over three years | | | | | | | Measures operating profitability on a per share basis over three years | | | | | | | Measures our ability to reinvest and return value to shareholders over three years | | | |||
| | Performance adjusted by a relative Return on Invested Capital Modifier. | | |
| | | | Threshold | | | Target | | | Max | |
| Financial Metrics | | | Attainment % / Payout % | | | Attainment % / Payout % | | | Attainment % / Payout % | |
| Revenue (40%) | | | 70% / 25% | | | 100% / 100% | | | 120% / 150% | |
| Operating EPS (30%)(1) | | | 70% / 25% | | | 100% / 100% | | | 120% / 150% | |
| Free Cash Flow (30%)(1) | | | 70% / 25% | | | 100% / 100% | | | 120% / 150% | |
| Which Stockholders were Engaged | | | Who Engaged from IBM | |
| In 2023, IBM once again offered year-round robust engagement to our stockholders, reaching out to over 125 institutions and hundreds of thousands of individual registered and beneficial owners leading up to the 2023 Annual Meeting and then offering off-season engagement to stockholders owning more than 57% of the shares that voted on Say on Pay in 2023. | | | The Company continued its enhanced engagement practices in 2023. IBM’s Chairman and CEO, Lead Director, and members of IBM’s senior management participated in this engagement program. | |
| | What We Do | | |||||||||||||||
| | | What We Don’t Do | | ||||||||||||||
| | |||||||||||||||||
| | | | | | | • Tie a significant portion of pay to Company performance | | ||||||||||
Mitigate risk taking by emphasizing long-term equity incentives, placing caps on potential payments, and maintaining robust clawback provisions | | |||||||||||||||||
Require significant share ownership by the Chairman and CEO, Vice Chairman and Senior Vice Presidents | | |||||||||||||||||
Utilize noncompetition and nonsolicitation agreements for senior executives | | |||||||||||||||||
Remove impact of share repurchase on executive incentives | | |||||||||||||||||
| | | |
| |||||||
| | | | • No individual severance or change-in-control agreements for executive officers | | ||
No excise tax gross-ups for executive officers | | ||||||
No dividend equivalents on unearned RSUs/PSUs | | ||||||
No hedging/pledging of IBM stock | | ||||||
No stock option repricing, exchanges or stock options granted below market value | | ||||||
No guaranteed incentive payouts for executive officers | | ||||||
No accelerated vesting of equity awards for executive officers | | ||||||
No above-market returns on deferred compensation plans | |
| | | | Ownership Requirements as a Multiple of Salary | | |||
| NEO Name | | | IBM Minimum Requirement | | | Median Peer Group Minimum Requirement | |
| A. Krishna | | | 10 | | | 7 | |
| J.J. Kavanaugh | | | 7 | | | 4 | |
| G. Cohn | | | 7 | | | 4 | |
| T. Rosamilia | | | 7 | | | 4 | |
| M.H. Browdy | | | 7 | | | 4 | |
| | | | Ownership Requirements as a Multiple of Salary | | |||
| | | | IBM Minimum Requirement | | | Median Peer Group Minimum Requirement | |
| CEO | | | 10 | | | 7 | |
| Other NEOs | | | 7 | | | 4 | |
| | What Counts | | | | | What Does Not Count | | ||||||||||
| | |||||||||||||||||
| | | | | ||||||||||||||
| | |||||||||||||||||
IBM shares owned personally or by members of the officer’s immediate family sharing the same household | | |||||||||||||||||
Holdings in the IBM Stock Fund of the 401(k) Plus Plan and the Excess 401(k) Plus Plan | | |||||||||||||||||
Shares of IBM stock deferred under the Excess 401(k) Plus Plan | | | | | | | | | | • Unvested equity awards • Unexercised stock options | |
| Accenture | | | Boeing | | | Microsoft | | | UPS | |
| Adobe | | | Cisco Systems | | | Oracle | | | Verizon | |
| Alphabet | | | General Electric | | | PepsiCo | | | Visa | |
| Amazon.com | | | | | Qualcomm | | | VMware(1) | | |
| AT&T | | | | | Raytheon | | | | | |
| Bank of America | | | Intel | | | Salesforce | | | | |
| |||||||
For | | | |||||
| In addition to overall IBM | |
BUSINESS RESULTS | | | | PORTFOLIO AND INVESTMENT | | ||||||
• • • | | | | Closed 9 strategic acquisitions in Sustainable revenue growth for third consecutive year | |
LEADERSHIP IN INNOVATION | | | | SOCIETAL IMPACT | | | | TALENT DEVELOPMENT AND LEADERSHIP | | |||||||||
• Delivered AI capabilities across the IBM • | | | | • Reduced IBM’s operational greenhouse gas emissions by 63%, with a goal of 65% by 2025 Centralized governance for data, privacy and | | | | • Continued best in class employee engagement • Growth in expertise levels for key skills (AI, Cloud, Security) | |
| | | | |
| | For | | |
| | |
| Senior Vice President, Finance & Operations and Chief Financial Officer | |
| Optimized portfolio and drove productivity initiatives generating margin expansion in 2023. Achieved over $1.5 billion dollars in annual run-rate savings, with a path to deliver at least $3 billion in annual run-rate savings by the end of 2024. | |
| Delivered free cash flow* of $11.2 billion, up $1.9 billion year-to-year, which enabled returning $6 billion to stockholders through dividends and investing over $5 billion to acquire 9 companies in 2023. | |
| Attracted new investors to IBM through strong engagement with shareholders; including one-on-one interactions, group functions, and participation in conferences. | |
| ROBERT D. THOMAS | |
| Senior Vice President, Software & Chief Commercial Officer | |
| Delivered 5% Software revenue growth, increasing client demand for watsonx and growing our AI footprint. | |
| Bolstered Software portfolio through investment in skills and innovation, including launching watsonx and driving strategic M&A. | |
| Continued transformation in go-to-market model to infuse more technical and experiential selling, leveraging expanded ecosystem and strategic partnerships. | |
| GARY COHN | |
| Vice Chairman | |
| Contributed to increased revenue and reach by leveraging IBM’s public and private partnerships. | |
| Expanded IBM’s presence and brand awareness with strategic clients by deepening senior relationships. | |
| Served as a spokesperson in discussions with global government leaders, media, and at public events to further advance IBM’s technology point of | |
| | |
| Senior Vice President and General Counsel | |
| Provided legal and regulatory support for IBM’s growth initiatives globally, including supporting the company’s AI agenda at the research, regulatory and field level. | |
| Continued to enhance IBM’s cybersecurity, privacy, data governance and AI ethics posture as regulatory focus on these issues continued to heighten around the world. | |
| Focused on talent development globally to ensure availability of world class legal and regulatory skills to support IBM’s growth initiatives across geographies and business lines. | |
| Name | | | 2023 Annual Incentive Payouts(1) | |
| J.J. Kavanaugh | | | $ | |
| R.D. Thomas | | | 1,552,500 | |
| G. Cohn | | | ||
| |||||
| M.H. Browdy | | | |
| | | 2022 Cash(1) | | 2022 Long-Term Incentive Awards(2) | | | | 2024 Cash | | 2024 Long-Term Incentive Awards(2) | | |||||||||||||||||||||||||||||||||||||||||||||||||
| Name | | Salary Rate | | Annual Incentive Target | | Performance Share Units | | Restricted Stock Units | | Stock Options | | Name | | Salary Rate(1) | | Annual Incentive Target | | Performance Share Units | | Restricted Stock Units | | Stock Options | | |||||||||||||||||||||||||||||||||||||
| J.J. Kavanaugh | | | $ | 1,064,000 | | | | $ | 1,436,000 | | | | $ | 5,400,000 | | | | $ | 1,800,000 | | | | $ | 1,800,000 | | | J.J. Kavanaugh | | $1,170,000 | | | $ | 1,580,000 | | | | $ | 6,150,000 | | | | $ | 2,050,000 | | | | $ | 2,050,000 | | | ||||||||||
| G. Cohn | | | | 1,170,000 | | | | | 1,580,000 | | | | | 4,350,000 | | | | | 1,450,000 | | | | | 1,450,000 | | | R.D. Thomas | | 1,064,000 | | | | 1,436,000 | | | | | 5,700,000 | | | | | 1,900,000 | | | | | 1,900,000 | | | ||||||||||
| T. Rosamilia | | | | 894,000 | | | | | 1,206,000 | | | | | 3,900,000 | | | | | 1,300,000 | | | | | 1,300,000 | | | G. Cohn | | 1,170,000 | | | | 1,580,000 | | | | | 4,800,000 | | | | | 1,600,000 | | | | | 1,600,000 | | | ||||||||||
| M.H. Browdy | | | | 936,000 | | | | | 1,264,000 | | | | | 3,000,000 | | | | | 1,000,000 | | | | | 1,000,000 | | | M.H. Browdy | | 936,000 | | | | 1,264,000 | | | | | 3,780,000 | | | | | 1,260,000 | | | | | 1,260,000 | | |
| Name and Principal Position | | | | | | | | | | | | | | | Stock | | | Option | | | Non-Equity Incentive Plan | | | Change in Pension | | | Nonqualified Deferred Compensation | | | All Other | | | ||||||||||||||
| (a) | | | Salary | (1) | | Bonus | (2) | | Awards | (3) | | Awards | (4) | | Compensation | (5) | | Value | (6) | | Earnings | (7) | | Compensation | (8)(9) | | Total | (10) | ||||||||||||||||||
| Year (b) | | | ($) (c) | | | ($) (d) | | | ($) (e) | | | ($) (f) | | | ($) (g) | | | ($) (h) | | | ($) (h) | | | ($) (i) | | | ($) (j) | | ||||||||||||||||||
| A. Krishna, Chairman and CEO | | |||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 1,500,000 | | | | | $ | 0 | | | | | $ | 11,483,809 | | | | $3,339,560 | | | $3,510,000 | | | | $ | 23,183 | | | | | $ | 0 | | | | $541,874 | | | | $ | 20,398,426 | | |
| 2022 | | | | | 1,500,000 | | | | | | 0 | | | | | | 8,927,701 | | | | 2,033,636 | | | 3,480,000 | | | | | 0 | | | | | | 0 | | | | 638,738 | | | | | 16,580,075 | | |
| 2021 | | | | | 1,500,000 | | | | | | 0 | | | | | | 12,605,507 | | | | 0 | | | 2,940,000 | | | | | 0 | | | | | | 0 | | | | 505,452 | | | | | 17,550,959 | | |
| J.J. Kavanaugh, Senior VP, F&O and CFO | | |||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 1,088,000 | | | | | $ | 0 | | | | | $ | 6,704,515 | | | | $1,949,711 | | | $1,730,430 | | | | $ | 15,264 | | | | | $ | 0 | | | | $203,369 | | | | $ | 11,691,289 | | |
| 2022 | | | | | 1,040,000 | | | | | | 0 | | | | | | 5,843,669 | | | | 1,331,106 | | | 1,665,760 | | | | | 19,187 | | | | | | 0 | | | | 233,263 | | | | | 10,132,985 | | |
| 2021 | | | | | 968,000 | | | | | | 0 | | | | | | 7,563,384 | | | | 0 | | | 1,437,700 | | | | | 0 | | | | | | 0 | | | | 200,534 | | | | | 10,169,618 | | |
| R.D. Thomas, Senior VP and Software Chief Commercial Officer(11) | | |||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 994,750 | | | | | $ | 0 | | | | | $ | 5,843,417 | | | | $1,699,249 | | | $1,552,500 | | | | $ | 3,170 | | | | | $ | 0 | | | | $241,228 | | | | $ | 10,334,314 | | |
| G. Cohn, Vice Chairman | | |||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 1,170,000 | | | | | $ | 0 | | | | | $ | 4,897,686 | | | | $1,424,239 | | | $1,848,600 | | | | | N/A | | | | | $ | 0 | | | | $196,565 | | | | $ | 9,537,090 | | |
| 2022 | | | | | 1,170,000 | | | | | | 0 | | | | | | 4,707,418 | | | | 1,072,289 | | | 1,832,800 | | | | | N/A | | | | | | 0 | | | | 169,418 | | | | | 8,951,925 | | |
| 2021 | | | | | 1,170,000 | | | | | | 1,000,000 | | | | | | 6,180,787 | | | | 0 | | | 1,548,400 | | | | | N/A | | | | | | 0 | | | | 2,417 | | | | | 9,901,604 | | |
| M.H. Browdy, Senior VP and General Counsel | | |||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | $ | 936,000 | | | | | $ | 0 | | | | | $ | 4,255,907 | | | | $1,237,603 | | | $1,516,800 | | | | | N/A | | | | | $ | 0 | | | | $157,847 | | | | $ | 8,104,157 | | |
| 2022 | | | | | 925,500 | | | | | | 0 | | | | | | 3,246,447 | | | | 739,505 | | | 1,466,240 | | | | | N/A | | | | | | 0 | | | | 147,753 | | | | | 6,525,445 | | |
| 2021 | | | | | 894,000 | | | | | | 0 | | | | | | 4,354,627 | | | | 0 | | | 1,266,300 | | | | | N/A | | | | | | 0 | | | | 135,930 | | | | | 6,650,857 | | |
| Name and Principal Position | | | | | | | | | | | | | | | Stock | | | Option | | | Non-Equity Incentive Plan | | | Change in Retention | | | Change in Pension | | | Nonqualified Deferred Compensation | | | All Other | | | | | | | | ||||||
| (a) | | | Salary | (1) | | Bonus | (2) | | Awards | (3) | | Awards | (4) | | Compensation | (5) | | Plan Value | (6) | | Value | (7) | | Earnings | (8) | | Compensation | (9)(10) | | Total | (11) | |||||||||||||||
| Year (b) | | | ($) (c) | | | ($) (d) | | | ($) (e) | | | ($) (f) | | | ($) (g) | | | ($) (h) | | | ($) (h) | | | ($) (h) | | | ($) (i) | | | ($) (j) | | |||||||||||||||
| A. Krishna, Chairman and CEO(12) | | |||||||||||||||||||||||||||||||||||||||||||||
| 2021 | | | | $ | 1,500,000 | | | | | $ | 0 | | | | | $ | 12,605,507 | | | | $ 0 | | | $2,940,000 | | | N/A | | | | $ | 0 | | | | $ 0 | | | $505,452 | | | | $ | 17,550,959 | | |
| 2020 | | | | | 1,352,591 | | | | | | 0 | | | | | | 13,159,118 | | | | 0 | | | 2,181,000 | | | N/A | | | | | 42,806 | | | | 0 | | | 274,167 | | | | | 17,009,682 | | |
| J.J. Kavanaugh, Senior VP and CFO | | |||||||||||||||||||||||||||||||||||||||||||||
| 2021 | | | | $ | 968,000 | | | | | $ | 0 | | | | | $ | 7,563,384 | | | | $ 0 | | | $1,437,700 | | | $ 0 | | | | $ | 0 | | | | $ 0 | | | $200,534 | | | | $ | 10,169,618 | | |
| 2020 | | | | | 899,000 | | | | | | 0 | | | | | | 7,416,931 | | | | 0 | | | 1,176,300 | | | 94,229 | | | | | 0 | | | | 0 | | | 159,836 | | | | | 9,746,296 | | |
| 2019 | | | | | 787,500 | | | | | | 0 | | | | | | 5,063,127 | | | | 0 | | | 1,064,000 | | | 83,877 | | | | | 11,804 | | | | 0 | | | 129,884 | | | | | 7,140,192 | | |
| G. Cohn, Vice Chairman(12) | | |||||||||||||||||||||||||||||||||||||||||||||
| 2021 | | | | $ | 1,170,000 | | | | | $ | 1,000,000 | | | | | $ | 6,180,787 | | | | $ 0 | | | $1,548,400 | | | N/A | | | | | N/A | | | | $ 0 | | | $ 2,417 | | | | $ | 9,901,604 | | |
| T. Rosamilia, Senior VP of IBM Software and Chairman, North America(12) | | |||||||||||||||||||||||||||||||||||||||||||||
| 2021 | | | | $ | 830,000 | | | | | $ | 0 | | | | | $ | 5,959,005 | | | | $ 0 | | | $1,064,000 | | | $ 0 | | | | $ | 0 | | | | $ 0 | | | $250,119 | | | | $ | 8,103,124 | | |
| M.H. Browdy, Senior VP and General Counsel | | |||||||||||||||||||||||||||||||||||||||||||||
| 2021 | | | | $ | 894,000 | | | | | $ | 0 | | | | | $ | 4,354,627 | | | | $ 0 | | | $1,266,300 | | | N/A | | | | | N/A | | | | $ 0 | | | $135,930 | | | | $ | 6,650,857 | | |
| 2020 | | | | | 830,000 | | | | | | 0 | | | | | | 4,211,031 | | | | 0 | | | 1,109,520 | | | N/A | | | | | N/A | | | | 0 | | | 124,112 | | | | | 6,274,663 | | |
| 2019 | | | | | 744,500 | | | | | | 0 | | | | | | 3,753,766 | | | | 0 | | | 982,300 | | | N/A | | | | | N/A | | | | 0 | | | 107,504 | | | | | 5,588,070 | | |
| Name (a) Type of Award(1) | | Grant Date (b) | | Compensation Committee Approval Date | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | | | All Other Stock Awards: Number of shares of Stock | | | All Other Option Awards: Numberof Securities Underlying Options (#) (j) | | Exercise or Base Price of Option Awards ($/Sh) (k) | | Closing Price on the NYSE on the Date of Grant ($/Sh) | | | Grant Date Fair Value of Stock and Option | | Name (a) Type of Award(1) | | Grant Date (b) | | Compensation Committee Approval Date | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | | Estimated Future Payouts Under Equity Incentive PlanAwards(2) | | | All Other Stock Awards: Number of shares of Stock | | All Other Option Awards: Number of Securities Underlying | | Exercise or Base Price of Option | | | Closing Price on the NYSE on the Date of Grant ($/Sh) | | | Grant Date Fair Value of Stock and Option | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Threshold ($) (c) | | Target ($) (d) | | Maximum ($) (e) | | Threshold (#) (f) | | Target (#) (g) | | Maximum (#) (h) | | or Units(3) (#) (i) | | Awards ($) (l) | (4) | | Threshold ($) (c) | | Target ($) (d) | | Maximum ($) (e) | | Threshold (#) (f) | | Target (#) (g) | | Maximum (#) (h) | | or Units (#) (i) | (3) | | Options (#) (j) | (3) | | Awards ($/Sh) (k) | (4) | | Awards ($) (l) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A. Krishna | | A. Krishna | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIP | | | | N/A | | | | | 01/25/2021 | | | | | 0 | | | | | 3,000,000 | | | | | 6,000,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AIP | | | | N/A | | | | | 1/30/2023 | | | | $ | 0 | | | | $ | 3,000,000 | | | | $ | 6,000,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
| PSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | 15,980 | | | | | 63,918 | | | | | 108,661 | | | | | | | | | | | | | | | | 8,193,533 | | | PSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | 18,369 | | | | | 73,476 | | | | | 124,909 | | | | | | | | | | | | | | | | | | | | | | | | $ | 8,612,857 | | | ||||||||||||||||||||||||||
| RSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 34,418 | | | | | | | | | | | 4,411,974 | | | RSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24,492 | | | | | | | | | | | | | | | | | | | | 2,870,952 | | | ||||||||||||||||||||||||||
| J.J. Kavanaugh | | SO | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 146,923 | | | | $ | 133.00 | | | | $ | 131.71 | | | | | 3,339,560 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIP | | | | N/A | | | | | 01/25/2021 | | | | | 0 | | | | | 1,307,000 | | | | | 3,921,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | J.J. Kavanaugh | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | 9,588 | | | | | 38,351 | | | | | 65,197 | | | | | | | | | | | | | | | | 4,916,173 | | | AIP | | | | N/A | | | | | 1/30/2023 | | | | | 0 | | | | | 1,479,000 | | | | | 4,437,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
| RSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,651 | | | | | | | | | | | 2,647,211 | | | PSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | 10,724 | | | | | 42,897 | | | | | 72,925 | | | | | | | | | | | | | | | | | | | | | | | | | 5,028,386 | | | ||||||||||||||||||||||||||
| G. Cohn | | RSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,299 | | | | | | | | | | | | | | | | | | | | 1,676,129 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIP | | | | N/A | | | | | 12/15/2020 | | | | | 0 | | | | | 1,580,000 | | | | | 4,740,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SO | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 85,777 | | | | | 133.00 | | | | | 131.71 | | | | | 1,949,711 | | | ||||||||||||||||||||||||||
| PSU | | | | 01/04/2021 | | | | | 12/15/2020 | | | | | | | | | | | | | | | | | | | | 1,615 | | | | | 6,458 | | | | | 10,979 | | | | | | | | | | | | | | | | 683,063 | | | R.D. Thomas | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSU | | | | 01/04/2021 | | | | | 12/15/2020 | | | | | | | | | | | | | | | | | | | | 3,133 | | | | | 12,533 | | | | | 21,306 | | | | | | | | | | | | | | | | 1,325,688 | | | AIP | | | | N/A | | | | | 1/30/2023 | | | | | 0 | | | | | 1,350,000 | | | | | 4,050,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
| PSU | | | | 01/04/2021 | | | | | 12/15/2020 | | | | | | | | | | | | | | | | | | | | 4,748 | | | | | 18,990 | | | | | 32,283 | | | | | | | | | | | | | | | | 2,008,750 | | | PSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | 9,347 | | | | | 37,387 | | | | | 63,558 | | | | | | | | | | | | | | | | | | | | | | | | | 4,382,504 | | | ||||||||||||||||||||||||||
| RSU | | | | 01/04/2021 | | | | | 12/15/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,451 | | | | | | | | | | | 2,163,286 | | | RSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,463 | | | | | | | | | | | | | | | | | | | | 1,460,913 | | | ||||||||||||||||||||||||||
| T. Rosamilia | | SO | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 74,758 | | | | | 133.00 | | | | | 131.71 | | | | | 1,699,249 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIP | | | | N/A | | | | | 01/25/2021 | | | | | 0 | | | | | 1,120,000 | | | | | 3,360,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | G. Cohn | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | 7,554 | | | | | 30,216 | | | | | 51,367 | | | | | | | | | | | | | | | | 3,873,340 | | | AIP | | | | N/A | | | | | 1/30/2023 | | | | | 0 | | | | | 1,580,000 | | | | | 4,740,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
| RSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,271 | | | | | | | | | | | 2,085,665 | | | PSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | 7,834 | | | | | 31,336 | | | | | 53,271 | | | | | | | | | | | | | | | | | | | | | | | | | 3,673,206 | | | ||||||||||||||||||||||||||
| M.H. Browdy | | RSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,446 | | | | | | | | | | | | | | | | | | | | 1,224,480 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIP | | | | N/A | | | | | 01/25/2021 | | | | | 0 | | | | | 1,206,000 | | | | | 3,618,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SO | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 62,659 | | | | | 133.00 | | | | | 131.71 | | | | | 1,424,239 | | | ||||||||||||||||||||||||||
| PSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | 5,520 | | | | | 22,081 | | | | | 37,538 | | | | | | | | | | | | | | | | 2,830,508 | | | M.H. Browdy | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSU | | | | 06/08/2021 | | | | | 01/25/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11,890 | | | | | | | | | | | 1,524,120 | | | AIP | | | | N/A | | | | | 1/30/2023 | | | | | 0 | | | | | 1,264,000 | | | | | 3,792,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||
| PSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | 6,808 | | | | | 27,230 | | | | | 46,291 | | | | | | | | | | | | | | | | | | | | | | | | | 3,191,901 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RSU | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,077 | | | | | | | | | | | | | | | | | | | | 1,064,006 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SO | | | | 2/21/2023 | | | | | 1/30/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 54,448 | | | | | 133.00 | | | | | 131.71 | | | | | 1,237,603 | | |
| Name | | | Grant Date | | | Threshold | | | Target | | | Maximum | | ||||||||||||
| A. Krishna | | | | | 02/21/2022 | | | | | | 15,491 | | | | | | 61,963 | | | | | | 105,337 | | |
| | | | | | 02/21/2023 | | | | | | 18,369 | | | | | | 73,476 | | | | | | 124,909 | | |
| J.J. Kavanaugh | | | | | 02/21/2022 | | | | | | 10,140 | | | | | | 40,558 | | | | | | 68,949 | | |
| | | | | | 02/21/2023 | | | | | | 10,724 | | | | | | 42,897 | | | | | | 72,925 | | |
| R.D. Thomas | | | | | 02/21/2022 | | | | | | 7,886 | | | | | | 31,545 | | | | | | 53,627 | | |
| | | | | | 02/21/2023 | | | | | | 9,347 | | | | | | 37,387 | | | | | | 63,558 | | |
| G. Cohn | | | | | 02/21/2022 | | | | | | 8,168 | | | | | | 32,672 | | | | | | 55,542 | | |
| | | | | | 02/21/2023 | | | | | | 7,834 | | | | | | 31,336 | | | | | | 53,271 | | |
| M.H. Browdy | | | | | 02/21/2022 | | | | | | 5,633 | | | | | | 22,532 | | | | | | 38,304 | | |
| | | | | | 02/21/2023 | | | | | | 6,808 | | | | | | 27,230 | | | | | | 46,291 | | |
| Name | | | Grant Date | | | Threshold | | | Target | | | Maximum | | ||||||||||||
| A. Krishna | | | | | 12/17/2019 | | | | | | 143,910 | | | | | | 179,888 | | | | | | 215,866 | | |
| | | | | | 06/08/2020 | | | | | | 18,740 | | | | | | 74,960 | | | | | | 127,432 | | |
| | | | | | 06/08/2021 | | | | | | 15,980 | | | | | | 63,918 | | | | | | 108,661 | | |
| J.J. Kavanaugh | | | | | 06/08/2020 | | | | | | 10,563 | | | | | | 42,250 | | | | | | 71,825 | | |
| | | | | | 06/08/2021 | | | | | | 9,588 | | | | | | 38,351 | | | | | | 65,197 | | |
| G. Cohn | | | | | 01/04/2021 | | | | | | 3,133 | | | | | | 12,533 | | | | | | 21,306 | | |
| | | | | | 01/04/2021 | | | | | | 4,748 | | | | | | 18,990 | | | | | | 32,283 | | |
| T. Rosamilia | | | | | 06/08/2020 | | | | | | 8,178 | | | | | | 32,710 | | | | | | 55,607 | | |
| | | | | | 06/08/2021 | | | | | | 7,554 | | | | | | 30,216 | | | | | | 51,367 | | |
| M.H. Browdy | | | | | 06/08/2020 | | | | | | 5,997 | | | | | | 23,988 | | | | | | 40,780 | | |
| | | | | | 06/08/2021 | | | | | | 5,520 | | | | | | 22,081 | | | | | | 37,538 | | |
| | | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Number of Securities Underlying Unexercised Options | | | Number of Securities Underlying Options (#) | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned | | | Option Exercise | | | Option | | | | | | | | | | | | | | | Number of Shares or Units That Have | | | Market Value of Shares or Units That Have | | | | | | | | | | | | | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have | | |||||||||||||||||||||
| Name | | | (#) | | | Options | | | Price | (2) | | Expiration | | | | | | | | | | | | | | | Not Vested | (3) | | Not Vested | (4) | | | | | | | | | | | | | | Not Vested | (5) | | Not Vested | (4) | ||||||||||||||||||||||||
| (a) | | | Exercisable | | | Unexercisable | (1) | | (#) | | | ($) | | | Date | | | Type of | | | Grant | | | (#) | | | ($) | | | Type of | | | Grant | | | (#) | | | ($) | | |||||||||||||||||||||||||||||||||
| Grant Date | | | (b) | | | (c) | | | (d) | | | (e) | | | (f) | | | Award | | | Date | | | (g) | | | (h) | | | Award | | | Date | | | (i) | | | (j) | | |||||||||||||||||||||||||||||||||
| A. Krishna | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 02/21/22 | | | | | 36,134 | | | | | | 108,403 | | | | | | N/A | | | | | $ | 124.51 | | | | | | 02/20/32 | | | | | | RSU | | | | | | 06/08/20 | | | | 10,091 | | | | $ | 1,650,383 | | | | | | PSU | | | | | | 02/21/22 | | | | 61,963 | | | | $ | 10,134,049 | | |
| 02/21/23 | | | | | 0 | | | | | | 146,923 | | | | | | N/A | | | | | | 133.00 | | | | | | 02/20/33 | | | | | | RSU | | | | | | 06/08/21 | | | | 17,210 | | | | | 2,814,696 | | | | | | PSU | | | | | | 02/21/23 | | | | 73,476 | | | | | 12,017,000 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/22 | | | | 15,492 | | | | | 2,533,717 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/23 | | | | 24,492 | | | | | 4,005,667 | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 36,134 | | | | | | 255,326 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 67,285 | | | | $ | 11,004,463 | | | | | | | | | | | | | | | | 135,439 | | | | $ | 22,151,049 | | |
| J.J. Kavanaugh | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 02/21/22 | | | | | 23,651 | | | | | | 70,955 | | | | | | N/A | | | | | $ | 124.51 | | | | | | 02/20/32 | | | | | | RSU | | | | | | 06/08/20 | | | | 5,688 | | | | $ | 930,272 | | | | | | PSU | | | | | | 02/21/22 | | | | 40,558 | | | | $ | 6,633,261 | | |
| 02/21/23 | | | | | 0 | | | | | | 85,777 | | | | | | N/A | | | | | | 133.00 | | | | | | 02/20/33 | | | | | | RSU | | | | | | 06/08/21 | | | | 10,326 | | | | | 1,688,817 | | | | | | PSU | | | | | | 02/21/23 | | | | 42,897 | | | | | 7,015,804 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/22 | | | | 10,140 | | | | | 1,658,397 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/23 | | | | 14,299 | | | | | 2,338,601 | | | | | | | | | | | | | | | | | | | |||||
| Total | | | | | 23,651 | | | | | | 156,732 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 40,453 | | | | $ | 6,616,087 | | | | | | | | | | | | | | | | 83,455 | | | | $ | 13,649,065 | | |
| R.D. Thomas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 02/21/22 | | | | | 18,395 | | | | | | 55,188 | | | | | | N/A | | | | | $ | 124.51 | | | | | | 02/20/32 | | | | | | RRSU | | | | | | 02/11/20 | | | | 36,782 | | | | $ | 6,015,696 | | | | | | PSU | | | | | | 02/21/22 | | | | 31,545 | | | | $ | 5,159,185 | | |
| 02/21/23 | | | | | 0 | | | | | | 74,758 | | | | | | N/A | | | | | | 133.00 | | | | | | 02/20/33 | | | | | | RSU | | | | | | 06/08/20 | | | | 3,673 | | | | | 600,719 | | | | | | PSU | | | | | | 02/21/23 | | | | 37,387 | | | | | 6,114,644 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/21 | | | | 6,885 | | | | | 1,126,042 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/22 | | | | 7,887 | | | | | 1,289,919 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/23 | | | | 12,463 | | | | | 2,038,324 | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 18,395 | | | | | | 129,946 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 67,690 | | | | $ | 11,070,700 | | | | | | | | | | | | | | | | 68,932 | | | | $ | 11,273,829 | | |
| G. Cohn | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 02/21/22 | | | | | 19,052 | | | | | | 57,159 | | | | | | N/A | | | | | $ | 124.51 | | | | | | 02/20/32 | | | | | | RSU | | | | | | 01/04/21 | | | | 10,226 | | | | $ | 1,672,462 | | | | | | PSU | | | | | | 02/21/22 | | | | 32,672 | | | | $ | 5,343,506 | | |
| 02/21/23 | | | | | 0 | | | | | | 62,659 | | | | | | N/A | | | | | | 133.00 | | | | | | 02/20/33 | | | | | | RSU | | | | | | 02/21/22 | | | | 8,169 | | | | | 1,336,040 | | | | | | PSU | | | | | | 02/21/23 | | | | 31,336 | | | | | 5,125,003 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/23 | | | | 10,446 | | | | | 1,708,443 | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 19,052 | | | | | | 119,818 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 28,841 | | | | $ | 4,716,945 | | | | | | | | | | | | | | | | 64,008 | | | | $ | 10,468,509 | | |
| M.H. Browdy | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 02/21/22 | | | | | 13,139 | | | | | | 39,420 | | | | | | N/A | | | | | $ | 124.51 | | | | | | 02/20/32 | | | | | | RSU | | | | | | 06/08/20 | | | | 3,231 | | | | $ | 528,430 | | | | | | PSU | | | | | | 02/21/22 | | | | 22,532 | | | | $ | 3,685,109 | | |
| 02/21/23 | | | | | 0 | | | | | | 54,448 | | | | | | N/A | | | | | | 133.00 | | | | | | 02/20/33 | | | | | | RSU | | | | | | 06/08/21 | | | | 5,945 | | | | | 972,305 | | | | | | PSU | | | | | | 02/21/23 | | | | 27,230 | | | | | 4,453,467 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/22 | | | | 5,634 | | | | | 921,441 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 02/21/23 | | | | 9,077 | | | | | 1,484,543 | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 13,139 | | | | | | 93,868 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23,887 | | | | $ | 3,906,719 | | | | | | | | | | | | | | | | 49,762 | | | | $ | 8,138,576 | | |
| | | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | Number of Securities Underlying Unexercised Options | | | Number of Securities Underlying Unexercised Options | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned | | | Option Exercise | | | Option | | | | | | | | | | | | | | | Number of Shares or Units of Stock That Have | | | Market Value of Shares or Units of Stock That Have | | | | | | | | | | | | | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have | | |||||||||||||||
| Name | | | (#) | | | (#) | | | Options | | | Price | | | Expiration | | | | | | | | | | | | | | | Not Vested | (1) | | Not Vested | (2) | | | | | | | | | | | | | | Not Vested | (3) | | Not Vested | (2) | |||||||||||||||
| (a) Grant Date | | | Exercisable (b) | | | Unexercisable (c) | | | (#) (d) | | | ($) (e) | | | Date (f) | | | Type of Award | | | Grant Date | | | (#) (g) | | | ($) (h) | | | Type of Award | | | Grant Date | | | (#) (i) | | | ($) (j) | | |||||||||||||||||||||||||||
| A. Krishna | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/18 | | | | 3,108 | | | | $ | 415,415 | | | | | | RPSU | | | | | | 12/17/19 | | | | | | 88,602 | | | | | $ | 11,842,543 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RRSU | | | | | | 12/11/18 | | | | 66,656 | | | | | 8,909,241 | | | | | | RPSU | | | | | | 12/17/19 | | | | | | 91,286 | | | | | | 12,201,287 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/07/19 | | | | 8,042 | | | | | 1,074,894 | | | | | | PSU | | | | | | 06/08/20 | | | | | | 74,960 | | | | | | 10,019,154 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/20 | | | | 30,273 | | | | | 4,046,289 | | | | | | PSU | | | | | | 06/08/21 | | | | | | 63,918 | | | | | | 8,543,280 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/21 | | | | 34,418 | | | | | 4,600,310 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 0 | | | | | | 0 | | | | | | | | | | | | | | | | | | | | | | | | | 142,497 | | | | $ | 19,046,149 | | | | | | | | | | | | | | | | | | 318,766 | | | | | $ | 42,606,264 | | |
| J.J. Kavanaugh | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/18 | | | | 2,968 | | | | $ | 396,703 | | | | | | PSU | | | | | | 06/08/20 | | | | | | 42,250 | | | | | $ | 5,647,135 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/07/19 | | | | 7,774 | | | | | 1,039,073 | | | | | | PSU | | | | | | 06/08/21 | | | | | | 38,351 | | | | | | 5,125,995 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/20 | | | | 17,063 | | | | | 2,280,641 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/21 | | | | 20,651 | | | | | 2,760,213 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 0 | | | | | | 0 | | | | | | | | | | | | | | | | | | | | | | | | | 48,456 | | | | $ | 6,476,630 | | | | | | | | | | | | | | | | | | 80,601 | | | | | $ | 10,773,130 | | |
| G. Cohn | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | RRSU | | | | | | 12/28/20 | | | | 50,510 | | | | $ | 6,751,167 | | | | | | PSU | | | | | | 01/04/21 | | | | | | 12,533 | | | | | $ | 1,675,161 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 01/04/21 | | | | 20,451 | | | | | 2,733,481 | | | | | | PSU | | | | | | 01/04/21 | | | | | | 18,990 | | | | | | 2,538,203 | | |
| Total | | | | | 0 | | | | | | 0 | | | | | | | | | | | | | | | | | | | | | | | | | 70,961 | | | | $ | 9,484,648 | | | | | | | | | | | | | | | | | | 31,523 | | | | | $ | 4,213,364 | | |
| T. Rosamilia | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/18 | | | | 3,108 | | | | $ | 415,415 | | | | | | PSU | | | | | | 06/08/20 | | | | | | 32,710 | | | | | $ | 4,372,019 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/07/19 | | | | 7,774 | | | | | 1,039,073 | | | | | | PSU | | | | | | 06/08/21 | | | | | | 30,216 | | | | | | 4,038,671 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/20 | | | | 13,210 | | | | | 1,765,649 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/21 | | | | 16,271 | | | | | 2,174,782 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 0 | | | | | | 0 | | | | | | | | | | | | | | | | | | | | | | | | | 40,363 | | | | $ | 5,394,919 | | | | | | | | | | | | | | | | | | 62,926 | | | | | $ | 8,410,690 | | |
| M.H. Browdy | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/18 | | | | 2,148 | | | | $ | 287,102 | | | | | | PSU | | | | | | 06/08/20 | | | | | | 23,988 | | | | | $ | 3,206,236 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/07/19 | | | | 5,764 | | | | | 770,416 | | | | | | PSU | | | | | | 06/08/21 | | | | | | 22,081 | | | | | | 2,951,346 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/20 | | | | 9,688 | | | | | 1,294,898 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | RSU | | | | | | 06/08/21 | | | | 11,890 | | | | | 1,589,217 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | 0 | | | | | | 0 | | | | | | | | | | | | | | | | | | | | | | | | | 29,490 | | | | $ | 3,941,633 | | | | | | | | | | | | | | | | | | 46,069 | | | | | $ | 6,157,582 | | |
| | | | | | | | | | | | | | | | Vesting Schedule | | |||||||||||||||||||||
| Name | | | Type of Award | | | Grant Date | | | 2022 | | | 2023 | | | 2024 | | | 2025 | | ||||||||||||||||||
| A. Krishna | | | | | RSU | | | | | | 06/08/2018 | | | | | | 3,108 | | | | | | | | | | | | | | | | | | | | |
| | | | | | RRSU | | | | | | 12/11/2018 | | | | | | 33,328 | | | | | | 33,328 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/07/2019 | | | | | | 4,020 | | | | | | 4,022 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2020 | | | | | | 10,091 | | | | | | 10,091 | | | | | | 10,091 | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2021 | | | | | | 8,604 | | | | | | 8,604 | | | | | | 8,604 | | | | | | 8,606 | | |
| J.J. Kavanaugh | | | | | RSU | | | | | | 06/08/2018 | | | | | | 2,968 | | | | | | | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/07/2019 | | | | | | 3,885 | | | | | | 3,889 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2020 | | | | | | 5,687 | | | | | | 5,688 | | | | | | 5,688 | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2021 | | | | | | 5,162 | | | | | | 5,163 | | | | | | 5,163 | | | | | | 5,163 | | |
| G. Cohn | | | | | RRSU | | | | | | 12/28/2020 | | | | | | 27,359 | | | | | | 23,151 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 01/04/2021 | | | | | | 5,112 | | | | | | 5,113 | | | | | | 5,112 | | | | | | 5,114 | | |
| T. Rosamilia | | | | | RSU | | | | | | 06/08/2018 | | | | | | 3,108 | | | | | | | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/07/2019 | | | | | | 3,885 | | | | | | 3,889 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2020 | | | | | | 4,403 | | | | | | 4,403 | | | | | | 4,404 | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2021 | | | | | | 4,067 | | | | | | 4,068 | | | | | | 4,068 | | | | | | 4,068 | | |
| M.H. Browdy | | | | | RSU | | | | | | 06/08/2018 | | | | | | 2,148 | | | | | | | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/07/2019 | | | | | | 2,880 | | | | | | 2,884 | | | | | | | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2020 | | | | | | 3,228 | | | | | | 3,229 | | | | | | 3,231 | | | | | | | | |
| | | | | | RSU | | | | | | 06/08/2021 | | | | | | 2,972 | | | | | | 2,973 | | | | | | 2,972 | | | | | | 2,973 | | |
| | | Option Awards | | Stock Awards(1) | | | | Option Awards | | Stock Awards(1) | | ||||||||||||||||||||||||||||||||||||||||
| Name (a) | | Number of Shares Acquired on Exercise (#) (b) | | Value Realized on Exercise ($) (c) | | Number of Shares Acquired on Vesting (#) (d) | | Value Realized on Vesting ($) (e) | | Name (a) | | Number of Shares Acquired on Exercise (#) (b) | | Value Realized on Exercise ($) (c) | | Number of Shares Acquired on Vesting (#) (d) | | Value Realized on Vesting ($) (e) | | ||||||||||||||||||||||||||||||||
| A. Krishna | | | | 0 | | | | $ | 0 | | | | | 151,030 | | | | $ | 20,242,361 | | | A. Krishna | | | | 0 | | | | $ | 0 | | | | | 206,185 | | | | $ | 32,883,416 | | | ||||||||
| J.J. Kavanaugh | | | | 0 | | | | | 0 | | | | | 32,036 | | | | | 4,496,542 | | | J.J. Kavanaugh | | | | 0 | | | | | 0 | | | | | 50,335 | | | | | 7,701,524 | | | ||||||||
| G. Cohn | | | | 0 | | | | | 0 | | | | | 37,676 | | | | | 4,993,179 | | | R.D. Thomas | | | | 0 | | | | | 0 | | | | | 43,649 | | | | | 6,509,506 | | | ||||||||
| T. Rosamilia | | | | 0 | | | | | 0 | | | | | 31,430 | | | | | 4,406,151 | | | G. Cohn | | | | 0 | | | | | 0 | | | | | 46,938 | | | | | 7,489,153 | | | ||||||||
| M.H. Browdy | | | | 0 | | | | | 0 | | | | | 23,011 | | | | | 3,223,290 | | | M.H. Browdy | | | | 0 | | | | | 0 | | | | | 29,511 | | | | | 4,504,848 | | |
| Name | | Annual Retention Plan Benefit at Earliest Unreduced Retirement Age | | Name | | Annual Retention Plan Benefit at Earliest Unreduced Retirement Age | | ||||||||
| J.J. Kavanaugh | | | $ | 18,757 | | | J.J. Kavanaugh | | | $ | 10,097 | | | ||
| T. Rosamilia | | | | 87,795 | | |
| | | | | Number of Years Credited | | Present Value of Accumulated | | Payments During Last | | | | | | Number of Years Credited | | Present Value of Accumulated | | Payments During Last | | ||||||||||||||||||||||||||
| | | | | Service | (1) | | Benefit | (2) | | Fiscal Year | | | | | | Service | (1) | | Benefit | (2) | | Fiscal Year | | ||||||||||||||||||||||
| Name (a) | | Plan Name (b) | | (#) (c) | | ($) (d) | | ($) (e) | | Name (a) | | Plan Name (b) | | (#) (c) | | ($) (d) | | ($) (e) | | ||||||||||||||||||||||||||
| J.J. Kavanaugh | | Retention Plan | | | | 12 | | | | $ | 309,586 | | | | $ | 0 | | | J.J. Kavanaugh | | Retention Plan | | | | 12 | | | | $ | 131,110 | | | | $ | 0 | | | ||||||||
| T. Rosamilia | | Retention Plan | | | | 25 | | | | | 1,584,285 | | | | | 0 | | |
| Name | | | Maximum Lump Sum | | |||||||||||||||
| Qualified Plan | | | Nonqualified Plan | | | Total Available Lump Sum | | ||||||||||||
| A. Krishna | | | | $ | 262,694 | | | | | $ | 82,835 | | | | | $ | 345,529 | | |
| J.J. Kavanaugh | | | | | 177,408 | | | | | | 76,765 | | | | | | 254,173 | | |
| T. Rosamilia | | | | | 467,847 | | | | | | 146,543 | | | | | | 614,390 | | |
| Name | | | Maximum Lump Sum | | |||||||||||||||
| Qualified Plan | | | Nonqualified Plan | | | Total Available Lump Sum | | ||||||||||||
| A. Krishna | | | | $ | 224,528 | | | | | $ | 87,850 | | | | | $ | 332,378 | | |
| J.J. Kavanaugh | | | | | 118,148 | | | | | | 81,412 | | | | | | 269,560 | | |
| R.D. Thomas | | | | | 92,471 | | | | | | 272 | | | | | | 92,743 | | |
| Name | | | Annual Pension Benefit at Normal Retirement Age | | |||||||||||||||
| Qualified Plan | | | Nonqualified Plan | | | Total Benefit | | ||||||||||||
| A. Krishna | | | | $ | 24,891 | | | | | | N/A | | | | | $ | 24,891 | | |
| J.J. Kavanaugh | | | | | 21,962 | | | | | | N/A | | | | | | 21,962 | | |
| R.D. Thomas | | | | | 14,605 | | | | | | N/A | | | | | | 14,605 | | |
| Name | | | Annual Pension Benefit at Normal Retirement Age | | |||||||||||||||
| Qualified Plan | | | Nonqualified Plan | | | Total Benefit | | ||||||||||||
| A. Krishna | | | | $ | 20,769 | | | | | | N/A | | | | | $ | 20,769 | | |
| J.J. Kavanaugh | | | | | 12,546 | | | | | | N/A | | | | | | 12,546 | | |
| T. Rosamilia | | | | | 34,552 | | | | | | N/A | | | | | | 34,552 | | |
| | | | | Number of Years | | Present Value of | | Payments During | | | | | | Number of Years | | Present Value of | | Payments During | | ||||||||||||||||||||
| | | | | Credited Service | (1) | | Accumulated Benefit | (2) | | Last Fiscal Year | | | | | | Credited Service | (1) | | Accumulated Benefit | | Last Fiscal Year | | |||||||||||||||||
| Name (a) | | Plan Name (b) | | (#) (c) | | ($) (d) | | ($) (e) | | Name (a) | | Plan Name (b) | | (#) (c) | | ($) (d) | | ($) (e) | | ||||||||||||||||||||
| A. Krishna | | Qualified Plan | | | | 17 | | | $283,895 | | | $ | 0 | | | A. Krishna | | Qualified Plan | | | | 17 | | | $245,597 | | | $ | 0 | | | ||||||||
| | | Nonqualified Plan | | | | | | | 75,922 | | | | 0 | | | | | Nonqualified Plan | | | | | | | 86,086 | | | | 0 | | | ||||||||
| | | Total Benefit | | | | | | | $359,817 | | | $ | 0 | | | | | Total Benefit | | | | | | | $331,683 | | | $ | 0 | | | ||||||||
| J.J. Kavanaugh | | Qualified Plan | | | | 12 | | | $155,881 | | | $ | 0 | | | J.J. Kavanaugh | | Qualified Plan | | | | 12 | | | $180,497 | | | $ | 0 | | | ||||||||
| | | Nonqualified Plan | | | | | | | 66,578 | | | | 0 | | | | | Nonqualified Plan | | | | | | | 76,413 | | | | 0 | | | ||||||||
| | | Total Benefit | | | | | | | $222,459 | | | $ | 0 | | | | | Total Benefit | | | | | | | $256,910 | | | $ | 0 | | | ||||||||
| T. Rosamilia | | Qualified Plan | | | | 25 | | | $499,374 | | | $ | 0 | | | R.D. Thomas | | Qualified Plan | | | | 9 | | | $80,293 | | | $ | 0 | | | ||||||||
| | | Nonqualified Plan | | | | | | | 137,990 | | | | 0 | | | | | Nonqualified Plan | | | | | | | 232 | | | | 0 | | | ||||||||
| | | Total Benefit | | | | | | | $637,364 | | | $ | 0 | | | | | Total Benefit | | | | | | | $80,525 | | | $ | 0 | | |
| | | | | Executive Contributions | | | | Registrant Contributions | | Aggregate Earnings in | | Aggregate Withdrawal/ | | Aggregate Balance at | | | | | | Executive Contributions | | | | Registrant Contributions | | Aggregate Earnings in | | Aggregate Withdrawal/ | | Aggregate Balance at | | ||||||||||||||||||||||||||||||||||||||||||||
| | | | | in Last FY | (1) | | | | in Last FY | (2) | | Last FY | (3) | | Distributions | | Last FYE | (4) | | | | | in Last FY | (1) | | | | in Last FY | (2) | | Last FY | (3) | | Distributions | | Last FYE | (4) | ||||||||||||||||||||||||||||||||||||||
| Name (a) | | Plan | | ($) (b) | | | | ($) (c) | | ($) (d) | | ($) (e) | | ($) (f) | | Name (a) | | Plan | | ($) (b) | | | | ($) (c) | | ($) (d) | | ($) (e) | | ($) (f) | | ||||||||||||||||||||||||||||||||||||||||||||
| A. Krishna | | Basic Account | | | $ | 203,460 | | | Match | | | $ | 203,460 | | | | $ | 525,047 | | | | $ | 0 | | | | $ | 6,176,682 | | | A. Krishna | | Basic Account | | | $ | 279,000 | | | Match | | | $ | 279,000 | | | | $ | 764,356 | | | | $ | 0 | | | | $ | 7,928,063 | | | ||||||||||||||
| | | | | | | | | | Automatic | | | | 67,820 | | | | | | | | | | | | | | | | | | | | | | | | | | | Automatic | | | | 93,000 | | | | | | | | | | | | | | | | | | ||||||||||||||
| | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | ||||||||||||||
| | | Total | | | $ | 203,460 | | | | | | $ | 271,280 | | | | $ | 525,047 | | | | $ | 0 | | | | $ | 6,176,682 | | | | | Total | | | $ | 279,000 | | | | | | $ | 372,000 | | | | $ | 764,356 | | | | $ | 0 | | | | $ | 7,928,063 | | | ||||||||||||||
| J.J. Kavanaugh | | Basic Account | | | $ | 242,000 | | | Match | | | $ | 111,258 | | | | $ | 1,049,138 | | | | $ | 0 | | | | $ | 6,906,210 | | | J.J. Kavanaugh | | Basic Account | | | $ | 45,481 | | | Match | | | $ | 45,481 | | | | $ | 1,599,006 | | | | $ | 0 | | | | $ | 7,965,280 | | | ||||||||||||||
| | | | | | | | | | Automatic | | | | 37,086 | | | | | | | | | | | | | | | | | | | | | | | | | | | Automatic | | | | 48,475 | | | | | | | | | | | | | | | | | | ||||||||||||||
| | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 1,159 | | | | | 0 | | | | | 19,915 | | | | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 3,376 | | | | | 0 | | | | | 24,369 | | | ||||||||||||||
| | | Total | | | $ | 242,000 | | | | | | $ | 148,344 | | | | $ | 1,050,297 | | | | $ | 0 | | | | $ | 6,926,125 | | | | | Total | | | $ | 45,481 | | | | | | $ | 93,956 | | | | $ | 1,602,382 | | | | $ | 0 | | | | $ | 7,989,649 | | | ||||||||||||||
| G. Cohn | | Basic Account | | | $ | 0 | | | Match | | | $ | 0 | | | | $ | (8) | | | | $ | 0 | | | | $ | 480 | | | R.D. Thomas | | Basic Account | | | $ | 81,893 | | | Match | | | $ | 81,893 | | | | $ | 165,799 | | | | | | | | | $ | 1,250,762 | | | ||||||||||||||
| | | | | | | | | | Automatic | | | | 488 | | | | | | | | | | | | | | | | | | | | | | | | | | | Automatic | | | | 41,300 | | | | | | | | | | | | | | | | | | ||||||||||||||
| | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | ||||||||||||||
| | | Total | | | $ | 0 | | | | | | $ | 488 | | | | $ | (8) | | | | $ | 0 | | | | $ | 480 | | | | | Total | | | $ | 81,893 | | | | | | $ | 123,193 | | | | $ | 165,799 | | | | $ | 0 | | | | $ | 1,250,762 | | | ||||||||||||||
| T. Rosamilia | | Basic Account | | | $ | 92,880 | | | Match | | | $ | 92,880 | | | | $ | 483,034 | | | | $ | 0 | | | | $ | 4,296,187 | | ��� | G. Cohn | | Basic Account | | | $ | 1,466,240 | | | Match | | | $ | 133,640 | | | | $ | 436,883 | | | | $ | 0 | | | | $ | 3,085,784 | | | ||||||||||||||
| | | | | | | | | | Automatic | | | | 30,960 | | | | | | | | | | | | | | | | | | | | | | | | | | | Automatic | | | | 26,728 | | | | | | | | | | | | | | | | | | ||||||||||||||
| | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | ||||||||||||||
| | | Total | | | $ | 92,880 | | | | | | $ | 123,840 | | | | $ | 483,034 | | | | $ | 0 | | | | $ | 4,296,187 | | | | | Total | | | $ | 1,466,240 | | | | | | $ | 160,368 | | | | $ | 436,883 | | | | $ | 0 | | | | $ | 3,085,784 | | | ||||||||||||||
| M.H. Browdy | | Basic Account | | | $ | 85,676 | | | Match | | | $ | 85,676 | | | | $ | 104,557 | | | | $ | 0 | | | | $ | 1,794,757 | | | M.H. Browdy | | Basic Account | | | $ | 103,612 | | | Match | | | $ | 103,612 | | | | $ | 180,156 | | | | $ | 0 | | | | $ | 2,500,562 | | | ||||||||||||||
| | | | | | | | | | Automatic | | | | 17,135 | | | | | | | | | | | | | | | | | | | | | | | | | | | Automatic | | | | 20,722 | | | | | | | | | | | | | | | | | | ||||||||||||||
| | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | | | Deferred IBM Shares | | | | 0 | | | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | ||||||||||||||
| | | Total | | | $ | 85,676 | | | | | | $ | 102,811 | | | | $ | 104,557 | | | | $ | 0 | | | | $ | 1,794,757 | | | | | Total | | | $ | 103,612 | | | | | | $ | 124,334 | | | | $ | 180,156 | | | | $ | 0 | | | | $ | 2,500,562 | | |
| | | | | | | | | | LTPP | | | | | | | Nonqualified Deferred Compensation Excess 401(k)(6) | | | | | | | | | | | LTPP | | | | | | | Nonqualified Deferred Compensation Excess 401(k)(6) | | |||||||||||||||||||||||||||||||||||||||||||
| | | | | Annual Incentive | | Stock | | Stock | | Retention | | Basic | | Deferred IBM | | | | | | Annual Incentive | | Stock | | Stock | | Retention | | Basic | | Deferred IBM | | |||||||||||||||||||||||||||||||||||||||||||||||
| | | Termination | | Program | (2) | | Options | (3) | | Awards | (4) | | Plan | (5) | | Account | | Shares | | | | Termination | | Program | (2) | | Options | (3) | | Awards | (4) | | Plan | (5) | | Account | | Shares | | |||||||||||||||||||||||||||||||||||||||
| Name | | Scenario | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | Name | | Scenario | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | |||||||||||||||||||||||||||||||||||||||||||||||
| A. Krishna | | Termination(1) | | | $ | 2,940,000 | | | $0 | | | $ | 14,317,392 | | | | | N/A | | | | $ | 6,176,682(7) | | | | $ | 0(7) | | | A. Krishna | | Termination(1) | | | $ | 3,510,000 | | | | $ | 5,642,724 | | | | $ | 30,709,784 | | | | | N/A | | | | $ | 7,928,063(7) | | | | $ | 0 | | | ||||||||||||||
| | | For Cause | | | | 0 | | | 0 | | | | 0 | | | | | N/A | | | | | 5,905,402(7) | | | | | 0(7) | | | | | For Cause | | | | 0 | | | | | 0 | | | | | 0 | | | | | N/A | | | | | 7,556,063 (7) | | | | | 0 | | | ||||||||||||||
| J.J. Kavanaugh | | Termination(1) | | | | 1,437,700 | | | 0 | | | | 6,108,797 | | | | | 14,678 | | | | | 6,446,735(8) | | | | | 19,915(8) | | | J.J. Kavanaugh | | Termination(1) | | | | 1,730,430 | | | | | 3,693,418 | | | | | 9,546,250 | | | | $ | 10,503 | | | | | 7,473,182 (8) | | | | | 24,369(8) | | | ||||||||||||||
| | | For Cause | | | | 0 | | | 0 | | | | 0 | | | | | 0 | | | | | 6,298,390(8) | | | | | 19,915(8) | | | | | For Cause | | | | 0 | | | | | 0 | | | | | 0 | | | | | 0 | | | | | 7,379,226 (8) | | | | | 24,369(8) | | | ||||||||||||||
| G. Cohn | | Termination(1) | | | | 1,548,400 | | | 0 | | | | 535,175 | | | | | N/A | | | | | 488(9) | | | | | 0 | | | R.D. Thomas | | Termination(1) | | | | 1,552,500 | | | | | 718,141 | | | | | 3,512,563 | | | | | N/A | | | | | 1,250,762(9) | | | | | 0 | | | ||||||||||||||
| | | For Cause | | | | 0 | | | 0 | | | | 0 | | | | | N/A | | | | | 0(9) | | | | | 0 | | | | | For Cause | | | | 0 | | | | | 0 | | | | | 0 | | | | | N/A | | | | | 1,127,569 (9) | | | | | 0 | | | ||||||||||||||
| T. Rosamilia | | Termination(1) | | | | 1,064,000 | | | 0 | | | | 5,612,517 | | | | | 87,795 | | | | | 4,296,187(10) | | | | | 0 | | | G. Cohn | | Termination(1) | | | | 1,848,600 | | | | | 743,790 | | | | | 2,608,950 | | | | | N/A | | | | | 308,578(10) | | | | | 0 | | | ||||||||||||||
| | | For Cause | | | | 0 | | | 0 | | | | 0 | | | | | 0 | | | | | 4,172,347(10) | | | | | 0 | | | | | For Cause | | | | 0 | | | | | 0 | | | | | 0 | | | | | N/A | | | | | 148,210 (10) | | | | | 0 | | | ||||||||||||||
| M.H. Browdy | | Termination(1) | | | | 1,266,300 | | | 0 | | | | 4,126,084 | | | | | N/A | | | | | 1,794,757(11) | | | | | 0 | | | M.H. Browdy | | Termination(1) | | | | 1,516,800 | | | | | 2,051,903 | | | | | 5,455,701 | | | | | N/A | | | | | 2,500,562(11) | | | | | 0 | | | ||||||||||||||
| | | For Cause | | | | 0 | | | 0 | | | | 0 | | | | | N/A | | | | | 1,691,946(11) | | | | | 0 | | | | | For Cause | | | | 0 | | | | | 0 | | | | | 0 | | | | | N/A | | | | | 2,376,228 (11) | | | | | 0 | | |
Year (a) | | | Summary Compensation Total for the Principal Executive Officer (“PEO”) | | | Compensation Actually Paid to the PEO | | | Summary Compensation Total for the Principal Executive Officer (“PEO”) | | | Compensation Actually Paid to the PEO | | | Average Summary Compensation Table Total for Non-PEO Named Executive Officers (“Non-PEO NEOs”) | | | Average Compensation Actually Paid to Non-PEO NEOs | | | Value of Initial Fixed $100 Investment Based on: | | | | |||||||||||||||||||||||||||||||||||||
| Total Shareholder Return | | | Peer Group Total Shareholder Return | | | Net Income (in $M) | | | Revenue (in $M) | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (b) | (1) | | (c) | (1)(7) | | (b) | (2) | | (c) | (2) (7) | | (d) | (3) | | (e) | (3) (7) | | (f) | | | (g) | (4) | | (h) | (5) | | (i) | (6) | ||||||||||||||||||||||||||||||||
2023 | | | | $ | 20,398,426 | | | | | $ | 32,769,352 | | | | | | N/A | | | | | | N/A | | | | | $ | 9,916,713 | | | | | $ | 14,444,039 | | | | | $ | 156 | | | | | $ | 167 | | | | | $ | 7,502 | | | | | $ | 61,860 | | |
2022 | | | | | 16,580,075 | | | | | | 23,935,007 | | | | | | N/A | | | | | | N/A | | | | | | 8,318,193 | | | | | | 10,496,901 | | | | | | 128 | | | | | | 115 | | | | | | 1,639 | | | | | | 60,530 | | |
2021 | | | | | 17,550,959 | | | | | | 23,798,901 | | | | | | N/A | | | | | | N/A | | | | | | 8,706,301 | | | | | | 9,116,435 | | | | | | 115 | | | | | | 179 | | | | | | 5,743 | | | | | | 57,350 | | |
2020 | | | | | 17,009,682 | | | | | | 13,997,217 | | | | | $ | 21,062,593 | | | | | $ | 15,778,831 | | | | | | 12,913,982 | | | | | | 10,795,062 | | | | | | 99 | | | | | | 132 | | | | | | 5,590 | | | | | | 55,179 | | |
| | Revenue | | | | | |
| | Operating Cash Flow | | | | | |
| | Operating EPS | | | | | |
| | Free Cash Flow | | | | | |
| (Dollars in millions) | | 2021 | | 2020 | | (Dollars in millions) | | 2023 | | 2022 | | ||||||||||||||||
| Audit Fees | | | $ | 53.7 | | | | $ | 52.8 | | | Audit Fees | | | $ | 49.9 | | | | $ | 48.9 | | | ||||
| Audit Related Fees | | | | 48.8 | | | | | 42.6 | | | Audit Related Fees | | | | 22.5 | | | | | 21.3 | | | ||||
| Tax Fees | | | | 1.2 | | | | | 1.3 | | | Tax Fees | | | | 0.9 | | | | | 0.8 | | | ||||
| All Other Fees | | | | 0.7 | | | | | 0.5 | | | All Other Fees | | | | 0.8 | | | | | 0.6 | | | ||||
| Total | | | $ | 104.4 | | | | $ | 97.2 | | | Total | | | $ | 74.1 | | | | $ | 71.6 | | |
| | | THE IBM BOARD OF DIRECTORS AND THE AUDIT COMMITTEE RECOMMEND A VOTE FOR THIS PROPOSAL. | |
| | | THE IBM BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THIS PROPOSAL. | |
| | | YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | | |
| This proposal does not properly consider IBM’s well-known disclosures, policies and practices in this area, or the consistent independent third-party recognition of IBM as a leader in lobbying and political spending disclosure. Last year, IBM stockholders rejected an identical proposal. Accordingly, the Board recommends against this Proposal since it is unnecessary and therefore not in the best interests of the Company and its stockholders. | | |||
| Independent Third Parties Consistently Recognize IBM as a Leader in Lobbying and Political Spending Disclosure | | |||
| IBM consistently receives high ratings from independent analysts of corporate practices on lobbying and political spending, including the Center for Political Accountability and Transparency International UK. In fact, the Center for Political Accountability’s 2023 Report on Corporate Political Disclosure and Accountability gave IBM a score of 98.6 out of 100, naming IBM as one of only 20 companies that fully prohibit the use of corporate assets to influence elections and as one of only 38 companies that prohibit both trade associations and non-profits from using Company contributions for election-related purposes. | | |||
| IBM Already Provides the Disclosure Requested by This Proposal | | |||
| This proposal requests disclosure of IBM’s policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. It also requests disclosure of IBM’s lobbying activities and expenditures, including payments made by IBM for lobbying activities. IBM already provides the disclosure requested on the Company’s public policy website (https://www.ibm.com/policy/philosophy-and-governance-new/). | | |||
| Based on stockholder feedback, IBM has further enhanced its disclosure by identifying those trade organizations that are directly engaged in U.S. lobbying through annual payments of $50,000 or higher. Moreover, on IBM’s public policy website the Company provides direct links to where it regularly files periodic reports with the Secretary of the U.S. Senate and the Clerk of the U.S. House of Representatives detailing its U.S. federal lobbying activities and expenditures (including expenditures for “indirect lobbying” via trade associations, as required by law), as well as with the European Union Transparency Register detailing its lobbying activities and expenditures with European Union institutions. In addition to this, IBM files reports with state and municipal governments, where required. | | |||
| Finally, this proposal requests a description of management’s decision-making process and the Board’s oversight of lobbying activities and expenditures. The Company provides this information on IBM’s public policy website. IBM has established clear oversight over such activities and expenditures through numerous written corporate policies, instructions, and guidelines, all of which are available on IBM’s public policy website. | | |||
| To be clear, IBM’s public policy advocacy spans a range of issues relevant to our business, clients, stockholders, employees, communities and other stakeholders. We engage leaders worldwide to promote ideas that can help spur growth and innovation with new technologies, or address societal changes, such as building a skilled and diverse workforce. IBM has always been committed to meaningful management, oversight, and accurate reporting with respect to our public policy engagement, including with respect to trade associations, and we consistently seek to provide our stockholders with relevant data regarding our public policy engagement. | | |||
| IBM Does Not Make Political Contributions of Any Kind | | |||
| We have a long-standing policy not to make contributions of any kind (money, employee time, goods or services), directly or indirectly, to political parties or candidates, including through intermediary organizations, such as political action committees, campaign funds, or trade or industry associations. | | |||
| IBM’s Lobbying Activities Support Growth and Innovation in the Digital Economy and Comply with All Applicable Laws | | |||
| All IBM lobbying activities, including by third parties on behalf of IBM, require the prior approval of the IBM Office of Government and Regulatory Affairs — a globally integrated function providing public policy and government relations expertise in support of IBM’s business operations worldwide — and must comply with applicable law and IBM’s Business Conduct Guidelines. IBM also complies fully with U.S. state and local lobbying disclosure laws, which vary by jurisdiction, but which do, in most cases, require lobbyists to register and disclose their lobbying activities. | | |||
| IBM Prohibits Trade Associations from Using IBM Funds to Engage in Political Expenditures | | |||
| IBM joins trade and industry associations that add value to IBM, its stockholders and employees. Although IBM works to make our voice heard, there may be occasions where our views on an issue differ from those of a particular association. On these occasions, IBM regularly shares its dissenting views within its trade associations and, when helpful to the policy debate, in public fora. We perform comprehensive due diligence on all of our trade associations to confirm they are reputable and have no history of malfeasance. Company policy prohibits them from using any IBM funds to engage in political expenditures, and we implement robust procedures to ensure they comply. | |
| The Board and Management Exercise Strong Oversight of Public Policy Efforts | | |||
| As part of the Board’s oversight function, the Company’s management periodically reports to its Board about IBM’s policies and practices in connection with governmental relations, public policy and related expenditures. IBM’s senior management, under the leadership of IBM Government and Regulatory Affairs, closely monitors and coordinates all public policy advocacy efforts, as well as lobbying activities. | | |||
| Conclusion | | |||
| For the reasons described above, the Board believes | ||||
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| THEREFORE, THE | |
| | | YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | | |
| This Board believes adoption of this proposal is unnecessary and would not provide additional useful information to the Company’s stockholders. This proposal was overwhelmingly rejected by IBM stockholders in 2023 with more than 90% of stockholders voting AGAINST. | | |||
| IBM adheres to the law across all of the countries where we do business, including government controls on the export and use of certain technologies. Further, IBM complies with all laws related to human rights and forced labor, including the US Uyghur Forced Labor Prevention Act and similar rules proposed by the European Commission. | | |||
| Globally, IBM practices the highest level of social, environmental and ethical responsibility in our global supply chains and we expect the same level of due diligence from our suppliers. The company was a founding member of the Responsible Business Alliance (RBA), a nonprofit industry group that helps its members continuously develop and execute the highest level of ethical standards in global supply chains. | | |||
| IBM requires our first-tier suppliers of hardware, software, and services to adhere to the RBA Code of Conduct, which contains provisions on labor, health and safety, environmental requirements, ethics, and management systems. We apply the same requirement across IBM’s own operations. And our suppliers must establish goals, disclose results, cascade IBM’s requirements to their next-tier suppliers, and more. | | |||
| In addition to the above, IBM has robust processes in place to ensure that our technology is not used in ways that would conflict with our values, our commitment to uphold basic human rights and freedoms, and our long-standing focus on responsible stewardship of powerful innovations. These robust processes are underpinned by our longstanding values relating to ethics and responsible business practices as well as our Principles for Trust and Transparency and include: • Annual employee certification to the IBM Business Conduct Guidelines; • IBM’s AI Ethics Board, which supports a centralized governance, review, and decision-making process for IBM ethics policies, practices, communications, research, products and services; and • Technology ethics training programs provided to IBM business partners. | | |||
| In conclusion, we see no conflict between IBM’s business activities in China, which accounts for only a small fraction of IBM’s total global revenue, and our commitments to corporate responsibility. | | |||
| Conclusion | | |||
| For the reasons described above, the Board believes the adoption of this proposal is unnecessary and not in the best interests of the Company and its stockholders. | | |||
| THEREFORE, THE BOARD RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | |
| | | YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | | |
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| IBM has long demonstrated its commitment to sound principles of corporate governance, working to ensure that its practices protect and further the interests of its stockholders. In addition to • • • the right to • no supermajority provisions in our charter documents; • annually-enhanced proxy disclosure that gives stockholders extensive insight into the Board’s oversight of • | | |||
| IBM’s current | | |||
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| In sum, the Board concludes that adoption of this proposal is unnecessary for the following reasons: • IBM’s • The belief that holding meetings with proper notice whereby all stockholders may deliberate and discuss the proposed actions, receive and consider the Company’s position, and then vote their shares is the most transparent and fair way for stockholders to take action; • The safeguards around the ability to act by a special or annual meeting both promote and protect stockholders’ interests; and • As described in this Proxy Statement, the Company has an established process by which stockholders may communicate directly with IBM’s Board | | |||
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| THEREFORE, THE BOARD RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | |
| | | YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | | |
| The Board has reviewed and considered this proposal and determined that it is unnecessary given IBM’s history on environmental matters, current disclosures and policies. | | |||
| IBM Has a Long History of Actively Addressing Environmental Matters | | |||
| For the past three decades, IBM has been actively addressing environmental concerns. When it comes to climate change, IBM has demonstrable leadership and results. In 1994, IBM began to voluntarily disclose carbon dioxide emissions associated with IBM’s consumption of energy and has done so every year since. In 2000, IBM established its first carbon dioxide emissions goal and is now working on its fifth successive goal, with factual achievement every step of the way. In 2001, IBM made its first purchase of renewable electricity and has continued ever since. In 2007, IBM published a formal position on climate change calling for meaningful action on a global basis to stabilize the atmospheric concentration of greenhouse gases. In 2015, IBM stood by this statement when it supported the Paris Agreement and reaffirmed its support in 2017. In 2019, IBM once again demonstrated its commitment to combating climate change by becoming a Founding Member of the Climate Leadership Council and supporting its bipartisan plan for a carbon tax with 100% of the net proceeds returned to citizens as a carbon dividend. Furthermore, IBM has been recognized with numerous awards for its climate leadership. Most recently, for example, IBM was named to Forbes Top 100 Net Zero Leaders 2023 and USA Today America’s Climate Leaders 2023. | | |||
| IBM Already Publicly Discloses its Climate Policy and Positions | | |||
| IBM’s public policy advocacy spans a range of issues relevant to our business, clients, stockholders, employees, communities and other stakeholders. We engage policymakers and leaders globally to promote ideas that can help spur growth and innovation with new technologies or address societal challenges, such as building a skilled and diverse workforce. We do this by developing innovative policy ideas that are aligned with national agendas, through building trusted relationships with government leaders, and through partnerships with academia and civil society. With regards to environmental matters, IBM is committed to addressing climate change through the company’s energy conservation and climate protection programs. IBM’s climate change policy and positions are already publicly available at our website and in our annual Impact Report: (https://www.ibm.com/about/environment/energy-climate). | | |||
| As an example of our public disclosure of our climate change policy and positions, IBM publicly endorsed the plan outlined by the Climate Leadership Council that would put a tax on carbon dioxide emissions, with the proceeds of that tax — a “carbon dividend” — to be returned to citizens. We did this because we are convinced this represents the most realistic and appropriate opportunity to get a majority of people to agree on a public policy towards carbon emissions that is mindful of both the environment and the economy. This plan would put in place strong economic incentives for energy companies to reduce carbon emissions and for energy consumers to reduce their own energy consumption. More information on this topic is available at our website (https://www.ibm.com/policy/climate-change/). | | |||
| IBM Already Provides Robust Disclosure on its Lobbying Activities and it is Recognized for its Transparency by Independent Third Parties | | |||
| IBM already discloses robust information with regards to its lobbying activities. In fact, IBM consistently receives high ratings from independent analysts of corporate practices on lobbying and political spending, including the Center for Political Accountability and Transparency International UK. In its latest report, the Center for Political Accountability’s 2023 Report on Corporate Political Disclosure and Accountability gave IBM a score of 98.6 out of 100, naming IBM as one of only 20 companies that fully prohibit the use of corporate assets to influence elections and as one of only 38 companies that prohibit both trade associations and non-profits from using Company contributions for election-related purposes. | | |||
| The additional, prescriptive annual report requested by the proponent focused on a single issue is unnecessary given the extent of IBM’s existing lobbying disclosures: (https://www.ibm.com/policy/philosophy-and-governance-new/). For example, IBM’s disclosures already identify those trade organizations that IBM is a member of and are directly engaged in U.S. lobbying through annual payments of $50,000 or higher. Moreover, the website also provides direct links to where IBM regularly files periodic reports with the Secretary of the U.S. Senate and the Clerk of the U.S. House of Representatives. These reports detail IBM’s U.S. federal lobbying activities (including environmental) and expenditures (including expenditures for “indirect lobbying” via trade associations, as required by law). The reports further display the European Union Transparency Register, which details IBM’s lobbying activities and expenditures with European Union institutions. Furthermore, IBM files reports with state and municipal governments where required. | | |||
| Conclusion | | |||
| For the reasons described above, the Board believes the adoption of this proposal is unnecessary and therefore not in the best interests of the Company and its stockholders. | | |||
| THEREFORE, THE BOARD RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | |
| | | YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | | |
| This proposal is unnecessarily prescriptive and does not properly consider IBM’s well-known disclosures, policies and practices in this area. Accordingly, the Board recommends AGAINST this proposal since it is unnecessary and not in the best interest of the Company and its stockholders. | | |||
| IBM Has a Long History of Actively Addressing Environmental Matters | | |||
| For the past three decades, IBM has been actively addressing environmental concerns. When it comes to climate change, IBM has demonstrable leadership and results. In 1994, IBM began to voluntarily disclose carbon dioxide emissions associated with IBM’s consumption of energy and has done so every year since. In 2000, IBM established its first carbon dioxide emissions goal and is now working on its fifth successive goal, with factual achievement every step of the way. In 2001, IBM made its first purchase of renewable electricity and has continued ever since. In 2007, IBM published a formal position on climate change calling for meaningful action on a global basis to stabilize the atmospheric concentration of greenhouse gases. In 2015, IBM stood by this statement when it supported the Paris Agreement and reaffirmed its support in 2017. In 2019, IBM once again demonstrated its | |
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| IBM’s Climate Change Goals Are Transparent, Authentic and Factually Based on Science | | |||
| Since its first carbon dioxide emissions reduction goal in 2000, IBM’s climate goals have always been transparent, authentic, and, most importantly, based on science. Currently, IBM has 11 voluntary goals pertaining to climate change, including goals for greenhouse gas (GHG) emissions reduction and net zero. These goals are aligned with the scientific recommendations of the United Nations Intergovernmental Panel on Climate Change (IPCC). We establish near-term targets to promote action and accountability and to promote our long-term objectives. | | |||
| We believe that demonstrable and factual results are what matter most and, for this reason, we avoid opaque representations of achievement. For example, one of IBM’s goals is to reduce the company’s operational GHG emissions by 65% by 2025 against base year 2010, adjusted for acquisitions and divestitures. As reported in our 2022 Impact Report, as of year-end 2022, IBM had already achieved a 63.3% reduction. This achievement was, and will continue to be, evaluated by an independent third party that reviewed GHG emissions and associated data from the activities under IBM’s operational control. It is also worth noting that the 63.3% reduction exceeds the annual rate of reduction recommended by the United Nations IPCC, which in its “Special Report: 1.5 C°” indicated that anthropogenic carbon dioxide emissions must decrease 45% between 2010 and 2030 to limit Earth’s warming to 1.5 degrees Celsius above pre-industrial levels. This translates to an annual rate of reduction of 2.25%, while IBM’s goal achieves a rate of reduction of 4.3% per year. Further, we do not include the purchase of nature-based carbon offsets to comprise any emissions reduction. | | |||
| IBM’s Climate Change Goals Already Include Our Value Chain | | |||
| Scope 3 GHG emissions are the direct emissions of numerous other entities with whom a company interacts. These entities include, for example, all suppliers around the world across all tiers (from the origin of a raw material to a finished product to its disposition), all of a company’s customers, and all of a company’s employees as those employees commute to a workplace. These entities are collectively referred to as a company’s “value chain.” Under a voluntary accounting standard named the Greenhouse Gas Protocol, the direct emissions of all the entities described above are also allocated and assigned to the company in question as that company’s indirect, estimated Scope 3 emissions. As such, these estimated emissions are typically counted multiple times. | | |||
| Determining Scope 3 emissions in a factual manner across a company’s value chain can be extremely challenging due to a lack of access to primary source data across multiple entities. That is why the majority are estimates of considerable uncertainty. Nevertheless, estimates can help inform where emissions occur in a macro sense across a broad market economy. For this reason, IBM reports in Scope 3 categories where it has relevant data to make estimates, and we offer software and solutions to help interested clients as well. | | |||
| IBM | | |||
| At the same time, we remain closely engaged with our suppliers and clients. Since 2010, IBM | | |||
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| THEREFORE, THE BOARD RECOMMENDS A VOTE AGAINST THIS PROPOSAL. | |
| Proposal | | | Vote Required | | | Do abstentions count as votes cast? | | | Is broker discretionary voting allowed? | |
| Election of Directors | | | Majority of votes cast | | | No | | | No | |
| Ratification of Appointment of PricewaterhouseCoopers LLP | | | Majority of votes cast | | | No | | | Yes | |
| | | Majority of votes cast | | | No | | | No | | |
| Stockholder Proposals* | | | Majority of votes cast | | | No | | | No | |
| ($ in millions except per share amount) For the year ended December 31, 2021 | | GAAP | | Acquisition- Related Adjustments | | Retirement- Related Adjustments | | Tax Reform Impacts | | Kyndryl Related Impacts | | Operating (Non-GAAP) | | ($ in millions except per share amount) For the year ended December 31, 2023 | | GAAP | | Acquisition- Related Adjustments | | Retirement- Related Adjustments | | Tax Reform Impacts | | Kyndryl Related Impacts | | Operating (Non-GAAP) | | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | | | $ | 31,486 | | | | $ | 719 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 32,205 | | | Gross Profit | | | $ | 34,300 | | | | $ | 631 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 34,931 | | | ||||||||||||
| Gross Profit Margin | | | | 54.9% | | | | | 1.3Pts | | | | | —Pts | | | | | —Pts | | | | | —Pts | | | | | 56.2% | | | Gross Profit Margin | | | | 55.4% | | | | | 1.0Pts | | | | | —Pts | | | | | —Pts | | | | | —Pts | | | | | 56.5% | | | ||||||||||||
| S,G&A | | | $ | 18,745 | | | | $ | (1.160) | | | | $ | — | | | | $ | — | | | | $ | (8) | | | | $ | 17,577 | | | S,G&A | | | $ | 19,003 | | | | $ | (1,039) | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 17,964 | | | ||||||||||||
| R,D&E | | | | 6,488 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 6,488 | | | Other (Income) & Expense* | | | | (914) | | | | | 10 | | | | | 39 | | | | | — | | | | | — | | | | | (866) | | | ||||||||||||
| Other (Income) & Expense | | | | 873 | | | | | (2) | | | | | (1,282) | | | | | — | | | | | 126 | | | | | (285) | | | Total Expense & Other (Income) | | | | 25,610 | | | | | (1,029) | | | | | 39 | | | | | — | | | | | — | | | | | 24,620 | | | ||||||||||||
| Total Expense & Other (Income) | | | | 26,649 | | | | | (1,162) | | | | | (1,282) | | | | | — | | | | | 118 | | | | | 24,324 | | | Pre-tax Income from Continuing Operations | | | | 8,690 | | | | | 1,660 | | | | | (39) | | | | | — | | | | | — | | | | | 10,311 | | | ||||||||||||
| Pre-tax Income from Continuing Operations | | | | 4,837 | | | | | 1,881 | | | | | 1,282 | | | | | — | | | | | (118) | | | | | 7,881 | | | Pre-tax Income Margin from Continuing Operations | | | | 14.0% | | | | | 2.7Pts | | | | | (0.1)Pts | | | | | —Pts | | | | | —Pts | | | | | 16.7% | | | ||||||||||||
| Pre-tax Income Margin from Continuing Operations | | | | 8.4% | | | | | 3.3Pts | | | | | 2.2Pts | | | | | —Pts | | | | | (0.2)Pts | | | | | 13.7% | | | Provision for/(benefit from) Income Taxes** | | | $ | 1,176 | | | | $ | 368 | | | | $ | (8) | | | | $ | (95) | | | | $ | — | | | | $ | 1,441 | | | ||||||||||||
| Provision for Income Taxes* | | | $ | 124 | | | | $ | 457 | | | | $ | 251 | | | | $ | (89) | | | | $ | (37) | | | | $ | 706 | | | Effective Tax Rate | | | | 13.5% | | | | | 1.4Pts | | | | | 0.0Pts | | | | | (0.9)Pts | | | | | —Pts | | | | | 14.0% | | | ||||||||||||
| Effective Tax Rate | | | | 2.6% | | | | | 5.2Pts | | | | | 2.8Pts | | | | | (1.1)Pts | | | | | (0.4)Pts | | | | | 9.0% | | | Income from Continuing Operations | | | $ | 7,514 | | | | $ | 1,292 | | | | $ | (30) | | | | $ | 95 | | | | $ | — | | | | $ | 8,870 | | | ||||||||||||
| Income from Continuing Operations | | | $ | 4,712 | | | | $ | 1,424 | | | | $ | 1,031 | | | | $ | 89 | | | | $ | (81) | | | | $ | 7,174 | | | Income Margin from Continuing Operations | | | | 12.1% | | | | | 2.1Pts | | | | | 0.0Pts | | | | | 0.2Pts | | | | | —Pts | | | | | 14.3% | | | ||||||||||||
| Income Margin from Continuing Operations | | | | 8.2% | | | | | 2.5Pts | | | | | 1.8Pts | | | | | 0.2Pts | | | | | (0.1)Pts | | | | | 12.5% | | | Diluted Earnings Per Share: Continuing Operations | | | $ | 8.15 | | | | $ | 1.40 | | | | $ | (0.03) | | | | $ | 0.10 | | | | $ | — | | | | $ | 9.62 | | | ||||||||||||
| Diluted Earnings Per Share: Continuing Operations | | | $ | 5.21 | | | | $ | 1.57 | | | | $ | 1.14 | | | | $ | 0.10 | | | | $ | (0.09) | | | | $ | 7.93 | | |
| ($ in millions except per share amount) For the year ended December 31, 2020 | | | GAAP | | | Acquisition- Related Adjustments | | | Retirement- Related Adjustments | | | Tax Reform Impacts | | | Kyndryl Related Impacts | | | Operating (Non-GAAP) | | ||||||||||||||||||
| Gross Profit | | | | $ | 30,865 | | | | | $ | 726 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 31,591 | | |
| Gross Profit Margin | | | | | 55.9% | | | | | | 1.3Pts | | | | | | —Pts | | | | | | —Pts | | | | | | —Pts | | | | | | 57.3% | | |
| S,G&A | | | | $ | 20,561* | | | | | $ | (1,117) | | | | | | — | | | | | | — | | | | | $ | — | | | | | $ | 19,445* | | |
| R,D&E | | | | | 6,262 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,262 | | |
| Other (Income) & Expense | | | | | 802 | | | | | | (2) | | | | | | (1,073) | | | | | | — | | | | | | — | | | | | | (273) | | |
| Total Expense & Other (Income) | | | | | 28,293* | | | | | | (1,119) | | | | | | (1,073) | | | | | | — | | | | | | — | | | | | | 26,101* | | |
| Pre-tax Income from Continuing Operations | | | | | 2,572* | | | | | | 1,845 | | | | | | 1,073 | | | | | | — | | | | | | — | | | | | | 5,490* | | |
| Pre-tax Income Margin from Continuing Operations | | | | | 4.7% | | | | | | 3.3Pts | | | | | | 1.9Pts | | | | | | —Pts | | | | | | —Pts | | | | | | 9.9% | | |
| Provision for Income Taxes** | | | | $ | (1,360) | | | | | $ | 411 | | | | | $ | 208 | | | | | $ | 110 | | | | | $ | — | | | | | $ | (630) | | |
| Effective Tax Rate | | | | | (52.9)% | | | | | | 25.3Pts | | | | | | 14.1Pts | | | | | | 2.0Pts | | | | | | —Pts | | | | | | (11.5)% | | |
| Income from Continuing Operations | | | | $ | 3,932* | | | | | $ | 1,434 | | | | | $ | 864 | | | | | $ | (110) | | | | | $ | — | | | | | $ | 6,120* | | |
| Income Margin from Continuing Operations | | | | | 7.1% | | | | | | 2.6Pts | | | | | | 1.6Pts | | | | | | (0.2)Pts | | | | | | —Pts | | | | | | 11.1% | | |
| Diluted Earnings Per Share: Continuing Operations | | | | $ | 4.38* | | | | | $ | 1.60 | | | | | $ | 0.96 | | | | | $ | (0.12) | | | | | $ | — | | | | | $ | 6.82* | | |
| ($ in millions except per share amount) For the year ended December 31, 2022 | | | GAAP | | | Acquisition- Related Adjustments | | | Retirement- Related Adjustments* | | | Tax Reform Impacts | | | Kyndryl Related Impacts | | | Operating (Non-GAAP) | | ||||||||||||||||||
| Gross Profit | | | | $ | 32,687 | | | | | $ | 682 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 33,370 | | |
| Gross Profit Margin | | | | | 54.0% | | | | | | 1.1Pts | | | | | | —Pts | | | | | | —Pts | | | | | | —Pts | | | | | | 55.1% | | |
| S,G&A | | | | $ | 18,609 | | | | | $ | (1,080) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 17,529 | | |
| Other (Income) & Expense | | | | | 5,803 | | | | | | (3) | | | | | | (6,548) | | | | | | — | | | | | | (351) | | | | | | (1,099) | | |
| Total Expense & Other (Income) | | | | | 31,531 | | | | | | (1,083) | | | | | | (6,548) | | | | | | — | | | | | | (351) | | | | | | 23,549 | | |
| Pre-tax Income from Continuing Operations | | | | | 1,156 | | | | | | 1,765 | | | | | | 6,548 | | | | | | — | | | | | | 351 | | | | | | 9,821 | | |
| Pre-tax Income Margin from Continuing Operations | | | | | 1.9% | | | | | | 2.9Pts | | | | | | 10.8Pts | | | | | | —Pts | | | | | | 0.6Pts | | | | | | 16.2% | | |
| Provision for/(benefit from) Income Taxes** | | | | $ | (626) | | | | | $ | 436 | | | | | $ | 1,615 | | | | | $ | 70 | | | | | $ | 0 | | | | | $ | 1,495 | | |
| Effective Tax Rate | | | | | (54.2)% | | | | | | 14.2Pts | | | | | | 52.6Pts | | | | | | 0.7Pts | | | | | | 1.9Pts | | | | | | 15.2% | | |
| Income from Continuing Operations | | | | $ | 1,783 | | | | | $ | 1,329 | | | | | $ | 4,933 | | | | | $ | (70) | | | | | $ | 351 | | | | | $ | 8,326 | | |
| Income Margin from Continuing Operations | | | | | 2.9% | | | | | | 2.2Pts | | | | | | 8.1Pts | | | | | | (0.1)Pts | | | | | | 0.6Pts | | | | | | 13.8% | | |
| Diluted Earnings Per Share: Continuing Operations | | | | $ | 1.95 | | | | | $ | 1.46 | | | | | $ | 5.41 | | | | | $ | (0.08) | | | | | $ | 0.38 | | | | | $ | 9.13 | | |
| ($ in millions except per share amount) For the year ended December 31, 2019 | | GAAP | | Acquisition- Related Adjustments | | Retirement- Related Adjustments | | Tax Reform Impacts | | Kyndryl Related Impacts | | Operating (Non-GAAP) | | ($ in millions except per share amount) For the year ended December 31, 2021 | | GAAP | | Acquisition- Related Adjustments | | Retirement- Related Adjustments | | Tax Reform Impacts | | Kyndryl Related Impacts | | Operating (Non-GAAP) | | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | | | $ | 31,533 | | | | $ | 540 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 32,073 | | | Gross Profit | | | $ | 31,486 | | | | $ | 719 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 32,205 | | | ||||||||||||
| Gross Profit Margin | | | | 54.6% | | | | | 0.9Pts | | | | | —Pts | | | | | —Pts | | | | | —Pts | | | | | 55.6% | | | Gross Profit Margin | | | | 54.9% | | | | | 1.3Pts | | | | | —Pts | | | | | —Pts | | | | | —Pts | | | | | 56.2% | | | ||||||||||||
| S,G&A | | | $ | 18,724 | | | | $ | (1,024) | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 17,700 | | | S,G&A | | | $ | 18,745 | | | | $ | (1,160) | | | | $ | — | | | | $ | — | | | | $ | (8) | | | | $ | 17,577 | | | ||||||||||||
| R,D&E | | | | 5,910 | | | | | (53) | | | | | — | | | | | — | | | | | — | | | | | 5,857 | | | Other (Income) & Expense | | | | 873 | | | | | (2) | | | | | (1,282) | | | | | — | | | | | 126 | | | | | (285) | | | ||||||||||||
| Other (Income) & Expense | | | | (1,012) | | | | | 152 | | | | | (576) | | | | | — | | | | | — | | | | | (1,436) | | | Total Expense & Other (Income) | | | | 26,649 | | | | | (1,162) | | | | | (1,282) | | | | | — | | | | | 118 | | | | | 24,324 | | | ||||||||||||
| Interest Expense | | | | 1,344 | | | | | (228) | | | | | — | | | | | — | | | | | — | | | | | 1,116 | | | Pre-tax Income from Continuing Operations | | | | 4,837 | | | | | 1,881 | | | | | 1,282 | | | | | — | | | | | (118) | | | | | 7,881 | | | ||||||||||||
| Total Expense & Other (Income) | | | | 24,327 | | | | | (1,154) | | | | | (576) | | | | | — | | | | | — | | | | | 22,598 | | | Pre-tax Income Margin from Continuing Operations | | | | 8.4% | | | | | 3.3Pts | | | | | 2.2Pts | | | | | —Pts | | | | | (0.2)Pts | | | | | 13.7% | | | ||||||||||||
| Pre-tax Income from Continuing Operations | | | | 7,206 | | | | | 1,693 | | | | | 576 | | | | | — | | | | | — | | | | | 9,475 | | | Provision for Income Taxes* | | | $ | 124 | | | | $ | 457 | | | | $ | 251 | | | | $ | (89) | | | | $ | (37) | | | | $ | 706 | | | ||||||||||||
| Pre-tax Income Margin from Continuing Operations | | | | 12.5% | | | | | 2.9Pts | | | | | 1.0Pts | | | | | —Pts | | | | | —Pts | | | | | 16.4% | | | Effective Tax Rate | | | | 2.6% | | | | | 5.2Pts | | | | | 2.8Pts | | | | | (1.1)Pts | | | | | (0.4)Pts | | | | | 9.0% | | | ||||||||||||
| Provision for Income Taxes* | | | $ | 60 | | | | $ | 358 | | | | $ | 110 | | | | $ | (146) | | | | $ | — | | | | $ | 382 | | | Income from Continuing Operations | | | $ | 4,712 | | | | $ | 1,424 | | | | $ | 1,031 | | | | $ | 89 | | | | $ | (81) | | | | $ | 7,174 | | | ||||||||||||
| Effective Tax Rate | | | | 0.8% | | | | | 3.6Pts | | | | | 1.1Pts | | | | | (1.5)Pts | | | | | —Pts | | | | | 4.0% | | | Income Margin from Continuing Operations | | | | 8.2% | | | | | 2.5Pts | | | | | 1.8Pts | | | | | 0.2Pts | | | | | (0.1)Pts | | | | | 12.5% | | | ||||||||||||
| Income from Continuing Operations | | | $ | 7,146 | | | | $ | 1,335 | | | | $ | 466 | | | | $ | 146 | | | | $ | — | | | | $ | 9,093 | | | Diluted Earnings Per Share: Continuing Operations | | | $ | 5.21 | | | | $ | 1.57 | | | | $ | 1.14 | | | | $ | 0.10 | | | | $ | (0.09) | | | | $ | 7.93 | | | ||||||||||||
| Income Margin from Continuing Operations | | | | 12.4% | | | | | 2.3Pts | | | | | 0.8Pts | | | | | 0.3Pts | | | | | —Pts | | | | | 15.8% | | | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted Earnings Per Share: Continuing Operations | | | $ | 8.00 | | | | $ | 1.50 | | | | $ | 0.52 | | | | $ | 0.16 | | | | $ | — | | | | $ | 10.18 | | |
| ($ in billions) For the year ended December 31: | | 2021 | | 2020 | | 2019 | | ($ in billions) For the year ended December 31: | | 2023 | | 2022* | | 2021 | | ||||||||||||||||||||||||
| Net cash from operating activities per GAAP* | | | $ | 12.8 | | | | $ | 18.2 | | | | $ | 14.8 | | | Net cash from operating activities per GAAP** | | | $ | 13.9 | | | | $ | 10.4 | | | | $ | 12.8 | | | ||||||
| Less: the change in Financing receivables | | | | 3.9 | | | | | 4.3 | | | | | 0.5 | | | Less: the change in Financing receivables | | | | 1.2 | | | | | (0.7) | | | | | 3.9 | | | ||||||
| Net cash from operating activities, excluding Financing receivables | | | | 8.9 | | | | | 13.8 | | | | | 14.3 | | | Net cash from operating activities, excluding Financing receivables | | | | 12.7 | | | | | 11.2 | | | | | 8.9 | | | ||||||
| Capital expenditures, net | | | | (2.4) | | | | | (3.0) | | | | | (2.4) | | | Capital expenditures, net | | | | (1.5) | | | | | (1.9) | | | | | (2.4) | | | ||||||
| Free Cash Flow | | | | 6.5** | | | | | 10.8 | | | | | 11.9 | | | Free Cash Flow+ | | | | 11.2 | | | | | 9.3 | | | | | 6.5 | | | ||||||
| Acquisitions | | | | (3.3) | | | | | (0.3) | | | | | (32.6) | | | Acquisitions | | | | (5.1) | | | | | (2.3) | | | | | (3.3) | | | ||||||
| Divestitures | | | | 0.1 | | | | | 0.5 | | | | | 1.1 | | | Divestitures | | | | (0.0) | | | | | 1.3 | | | | | 0.1 | | | ||||||
| Share Repurchase | | | | — | | | | | — | | | | | (1.4) | | | Dividends | | | | (6.0) | | | | | (5.9) | | | | | (5.9) | | | ||||||
| Common stock repurchases for tax withholdings | | | | (0.3) | | | | | (0.3) | | | | | (0.3) | | | Non-Financing Debt | | | | 5.5 | | | | | 1.9 | | | | | (1.2) | | | ||||||
| Dividends | | | | (5.9) | | | | | (5.8) | | | | | (5.7) | | | Other (includes Financing receivables and Financing debt)++ | | | | (1.0) | | | | | (2.9) | | | | | (3.0) | | | ||||||
| Non-Financing Debt | | | | (1.2) | | | | | 0.2 | | | | | 22.8 | | | Change in cash, cash equivalents and short-term marketable securities | | | $ | 4.6 | | | | $ | 1.3 | | | | $ | (6.7) | | | ||||||
| Other (includes Financing receivables and Financing debt) | | | | (2.7) | | | | | 0.2 | | | | | 1.0 | | | |||||||||||||||||||||||
| Change in cash, cash equivalents and short-term marketable securities | | | $ | (6.7)+ | | | | $ | 5.3 | | | | $ | (3.2) | | |
| | | | 2021 | | |||||||||
| | | | GAAP | | | @CC | | ||||||
| Reconciliation of Revenue Growth Rates: | | | | | | | | | | | | | |
| Software | | | | | 5% | | | | | | 4% | | |
| Consulting | | | | | 10% | | | | | | 8% | | |
| Business Transformation | | | | | 15% | | | | | | 13% | | |
| Technology Consulting | | | | | 11% | | | | | | 10% | | |
| Hybrid Cloud | | | | | 20% | | | | | | 19% | | |
| | | | GAAP | | | @CC | | ||||||
| Reconciliation of IBM Revenue Growth Rates: | | | | | | | | | | | | | |
| 1Q 2021 | | | | | 1.8% | | | | | | (1.3)% | | |
| 2Q 2021 | | | | | 4.5% | | | | | | 0.7% | | |
| 3Q 2021 | | | | | 2.4% | | | | | | 1.8% | | |
| 4Q 2021 | | | | | 6.5% | | | | | | 8.6% | | |
| | | | 4Q 2021 | | |||||||||
| | | | GAAP | | | @CC | | ||||||
| Reconciliation of IBM Revenue Growth Rates: | | | | | | | | | | | | | |
| Software | | | | | 8% | | | | | | 10% | | |
| | | | 2023 | | |||||||||
| | | | GAAP | | | @CC | | ||||||
| Reconciliation of Revenue Growth Rates: | | | | | | | | | | | | | |
| Software | | | | | 5% | | | | | | 5% | | |
| Hybrid Platform & Solutions | | | | | 5% | | | | | | 5% | | |
| Red Hat | | | | | 9% | | | | | | 9% | | |
| Consulting | | | | | 5% | | | | | | 6% | | |
| | | | GAAP | | | @CC | | ||||||
| Reconciliation of Total Revenue Growth Rates: | | | | | | | | | | | | | |
| 2023 | | | | | 2.2% | | | | | | 2.9% | | |
| 2022 | | | | | 5.5% | | | | | | 11.6% | | |
| 2021 | | | | | 3.9% | | | | | | 2.7% | | |