IBM pay plan barely passes

IBM’s compensation plan for top executives drew record shareholder opposition after the board boosted Chief Executive Officer Ginni Rometty’s pay package more than 60 per cent last year.

About 46 per cent of the votes cast at the April 25 annual meeting in Tampa, Florida, went against the board’s pay plan for top bosses, according to a regulatory filing Friday. That’s IBM’s lowest result since votes were first mandated for public companies in 2011. While it isn’t binding, 30 per cent opposition is generally considered the threshold for a losing vote and a result that should prompt directors to address shareholder concerns.

Investors including California State Teachers’ Retirement System and Florida’s State Board of Administration rejected the proposal that gave Rometty a $32.7 million (Dh120 million) pay package.