IBM CEO pay jumps 23% in 2023, average employee gets 7%
theregister.com
theregister.com
Title is wrong. Average employee compensation is 6.89% higher than last year but that doesn't mean employees got 6.89% raises on average. E.g. could be that the thousands of employees they laid off had lower average salaries than remaining ones. According to r/ibm typical raises are closer to 1-4%
At the end of the day it is the private property of the shareholders and if they decide the guy they hired does a good job then they can pay him more. Just not sure what is the plan for IBM in the long run, from the outside it looks like some zombie company that is still riding on the fumes when they were a monopoly.
As an example, they have expertise designing huge silicon chips, big iron servers, and fast interconnects. They even made a ternery chip in the past, and plenty of fabrication research. They could absolutely be a horse in the AI accelerator race.
Thats just one example of many.
...But they dont take advantage of any of that, like they are stuck in a corporate quagmire or something.
Neural chips, quantum computing, ultra high speed fiber, are just a few from the past few years, and just what we hear about. You name it and you can pretty much bet that IBM has something significantly better just sitting on the shelf, so to speak, when it comes to anything AI/server/datacenter, and plenty more.
Their patience and strategy in that area has always been impressive. Knowing you have amazing technology but there is no chance you can make money because of how difficult the thing is to manufacture, so just letting it sit until a worse version reaches scale, trading a smaller leap forward so it can actually be capitalized on is the smart move.
They do it well, but they simply cannot stop tripping themselves every time they try converting that library of advanced technology into revenue generation.
What did the top quartile employees get?
So, if the CEO made choices that increase profit by X multiple, bumping a single persons salary (heck even a handful of execs) by a decently high percent is very different than increasing the 10k’s of employees salaries.
Honestly, a 7% average (not even talking median) sounds pretty darn good given the size of them
It's also aggravating because those numbers look bad adjusted for inflation. Average inflation for 2023 was 4.1%, so inflation-adjusted, employees got a 2.8% raise and the CEO got 18.9%.
Lastly, and most importantly, CEO raises spike atmospherically when the company does well, but they take regular pay cuts, if any, when the company does poorly. It would be one thing if their pay swang wildly both directions, but it starts to look like "privatize the gains, publicize the losses".
When the company does well, most of the gains in pay go to the CEO. When the company does poorly, all the employees have to give stuff up for the company though.
This would bother me a lot less if we also saw "CEO takes 23% pay cut because new initiative failed" articles.
https://www.theglobeandmail.com/news/national/time-to-lead/h...
I wish we could get it added to product labeling as is currently done for price per unit weight/count.
Doesn't seem that crazy.
If split among its employees, they could have given a massive pay raise of at least…(checks calculations)… 0.01 cents per hour. I don’t see how employees can eat with a greedy CEO taking a fraction of a cent like that.
Sarcasm aside, it is beyond me how people are unable to understand that the need to show constant growth and profit is the most detrimental thing to both customer and worker, and not bonuses or golden parachutes.