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 percent last year.
About 46 percent 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 percent 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 pay package, her biggest since taking over the company in 2012. It came with a one-time grant of stock options that International Business Machines Corp. valued at $12.1 million. That might understate their value by perhaps 50 percent or more because of the way IBM values options, Bloomberg has reported.
The board “will review the results of this vote, as is its customary practice,” IBM said in an emailed statement. “The company will continue to align its compensation practices with the best interests of our shareholders, and balance those practices with the flexibility needed to attract and retain great leaders for this unique moment in the technology industry.”
The strike prices for Rometty’s premium options were “below the average three or five-year stock price levels, providing little corresponding benefit to long-term shareholders,” Jacob Williams, corporate governance manager at Florida’s State Board of Administration, said in an email. The premium stock options vest in 2019 if certain stock-price targets are met.
“Ongoing concerns are exacerbated by the increased magnitude of CEO pay,” proxy adviser Institutional Shareholder Services Inc. wrote in a report dated March 28, recommending clients vote against the board’s pay proposal. “The lack of disclosed performance targets under both the annual and long-term incentive programs is unusual and inhibits shareholders’ ability to assess the programs’ rigor.”
In a separate report, rival proxy firm Glass Lewis & Co. flagged IBM’s “repeated use” of one-time awards and Rometty’s “already high compensation levels” as reasons for concern, advising clients to cast votes against the pay program.
Low say-on-pay support levels are rare. On average, S&P 500 Index companies typically secure approval for executive pay plans from investors owning more than 90 percent of outstanding shares, according to data compiled by Bloomberg.
Since becoming CEO, Rometty has struggled to offset declining revenue from IBM’s older businesses with more recent efforts focused on cloud-related technologies and AI. The company’s shares have lagged both technology peers and the S&P 500.
BREAKING: Google Is Now A $1 Trillion Company
Google has recorded a milestone achievement of $1 trillion, joining the likes of Apple, Microsoft, and Amazon.
The search engine company was able to achieve the feat on Thursday, after its parent company, Alphabet ended the day’s trading at $1,451.70 per share, up 0.87 percent.
With Thursday’s achievement, Google became the fourth S&P 500 component to top the lofty level. Business Insider reported that while Apple and Microsoft are still valued at more than $1 trillion, Amazon which was the second US firm to ever hit the $1 trillion level back in September 2018 has since fallen below the number.
This is the first time that three American companies are worth at least $1 trillion at the same time. The most valuable company on the planet is still the oil giant Saudi Aramco, who went public last month at a valuation of $2 trillion and is currently worth around $1.8 trillion.
Alphabet’s record market valuation came after a historic change in leadership at the company. Recall that Sundar Pichai became the CEO of both Google and Alphabet after co-founders Larry Page and Sergey Brin announced that they would step back from the company which they founded in 1998.
Apple App Store Breaks Record, Earns $386m In A Single Day
Apple has reportedly broken a record by earning $386m from its app store in one day.
The App Store revenue for 2019 was record breaking and so was the amount earned just between Christmas Eve and New Year. The app store racked in a sum total of $1.42 billion between Christmas and New Year Day alone.
This is a 20% increase from 2019. 2019 was a great year for Apple as it was the launch of the Apple TV+, News+ and Arcade. Combined with Apple Music and Apple Pay.
However, Apple did not indicate the exact numbers each service brought but noted that Apple TV app will be coming to LG, Sony and VIZIO smart TVs.
Apple paid developers $38B in 2019, a quarter of what they’ve earned since the App Store launched in 2008 which is $155B.
Also Developers were paid $34B in 2018.
BEWARE: Your BANK Account Could Be Emptied Without An Alert → SEE HOW!
Dear All, Please let’s be very careful.. There is a new HIGH TECH FRAUD in town called the SIM SWAP FRAUD, and hundreds of persons are already VICTIMS.
How does it work?
- A new fraud called SIM SWAP has started. Your phone network will momentarily go blind / zero (No Signal / Zero Bars) and after a while a call will come through.
- The Person on the other end of the call will tell you that he is calling from (your cell phone company) depending on your network and that there is a problem in your mobile network.
- He will instruct you to Please press 1 on your phone to get the network back.
Please at this stage don’t Press anything, Just cut or END the call
If you press 1, the network will appear suddenly and almost immediately go blind again (Zero Bars) and by that action, your phone is #HACKED.
Within a second they will empty your bank account, thereby causing you untold damage.
– What you will experience –
It will appear as though your line is without Network, meanwhile your SIM has been SWAPPED.
The danger here is that, you will not get any alert of any transactions, so please those of us doing USSD Banking and Mobile Banking BEWARE. Let’s be very careful.
Please, share this article to your contacts, loved ones and friends. The fraud is increasing day by day.
Message from: a Cybersecurity Group