IBM
Compensation Insight

How IBM Pays

B6–B10, Distinguished Engineer and IBM Fellow career bands, compensation across 27 global cities, the 2026 Long-Term Performance Plan and ESPP, executive AIP mechanics, 2025 named-executive pay, insider filings and FY2026 H-1B wages.

264,300 employees · NYSE: IBM · Founded 1911 · Armonk, New York · FY ends December 31
Employees
264,300
IBM and wholly owned subsidiaries at 31 Dec 2025; plus 8,700 at less-than-wholly-owned subsidiaries
FY2025 revenue
$67.5B
2Q26 outlook: 4–5% constant-currency full-year growth
CEO total compensation
$37.99M
Arvind Krishna, 2025 Summary Compensation Table
CEO pay ratio
765:1
Median employee $49,630 total; $48,001 base
ESPP discount
15%
Up to 10% payroll deduction; semi-annual offerings; 6.6M shares available
H-1B median base
$129,480
FY2026 to 8 Jul 2026; average $145,639; 602 LCAs
Locations
India
United States
United Kingdom
Australia
New Zealand
Germany
Netherlands
Sweden
Singapore
United Arab Emirates
Saudi Arabia
Canada
South Africa
Shown in INR · observed anchor + model

Band Hierarchy

IBM’s externally observable professional ladder runs B6–B10, then Distinguished Engineer (Band D) and IBM Fellow (Band F), with a VP → SVP → Vice Chairman → CEO officer layer. No standardized EVP rung appears in 2025–26 officer disclosures, so none is inserted.

Chairman, President & CEO
Chief Executive OfficerVariable 233% AIP target
IC: Not an IC rung
Management: Enterprise chief executive and Board chair
Vice Chairman
Vice ChairmanVariable 135% AIP target for disclosed non-CEO NEOs
IC: Not an IC rung
Management: Enterprise-wide advisory and strategic leadership
Senior Vice President
Senior Vice President / Named Executive OfficerVariable 135% AIP target for disclosed non-CEO NEOs
IC: Not a normal IC rung
Management: Segment, enterprise function or major operating scope
Vice President
Vice PresidentVariable 30–80% target
IC: Technical VP / senior enterprise specialist where designated
Management: Business-unit, function, geography or portfolio executive
Band F
IBM Fellow / Elite Technical ExecutiveVariable 20–40%
IC: IBM Fellow; enterprise-wide technical authority
Management: No clean one-to-one management analogue publicly disclosed
Band D
Distinguished Engineer / DirectorVariable 15–35%
IC: Distinguished Engineer, Distinguished Designer, senior research leader
Management: Director / senior director; broad enterprise or business-unit scope
Band 10
Senior Technical Staff / Executive-track ProfessionalVariable 10–25%
IC: Senior Technical Staff Member, Principal / Chief Architect, Partner-track specialist
Management: Senior Manager, Associate Partner, program or portfolio leader
Band 9
Senior / Principal ProfessionalVariable 8–18%
IC: Senior Engineer, Senior Architect, Principal Consultant, Research Staff Member
Management: Senior Manager / delivery or practice leader
Band 8
Advisory / Lead ProfessionalVariable 5–12%
IC: Advisory Engineer, Lead Architect, Senior Consultant, Offering Manager
Management: First-line manager / team lead in many functions
Band 7
Staff / Experienced ProfessionalVariable 2–10%
IC: Staff Engineer, Application Developer, Consultant, Specialist
Management: Team lead / workstream lead may appear, but formal management varies
Band 6
Associate / Entry ProfessionalVariable 0–8%
IC: Associate Engineer, Developer, Consultant, Analyst, Designer
Management: Occasional team coordination; not normally a formal people-manager floor
Trainee / pre-band
Graduate / Trainee / ApprenticeVariable 0–5%
IC: Graduate Developer, Associate System Engineer trainee, support trainee
Management: Not a management level
Official disclosedHighlighted rows carry 2026 proxy disclosure (SVP/NEO, Vice Chairman, CEO). Management titles diverge meaningfully from the IC track around B8/B9.

Hierarchy qualifications

  • Bands are global architecture labels, but title, scope and pay can vary by business unit and country. Public employee discussions also describe broad overlap between adjacent pay bands.
  • B1–B5 administrative/technician references exist in historical/employee discussions, but current globally reliable title and pay mappings were not located. The model therefore starts with a trainee/pre-band layer and the well-observed B6 professional floor rather than fabricating B1–B5 tables.
  • IBM Fellow is an exceptional appointment, not a standard time-based promotion. Distinguished Engineer and Director are not universally equivalent; they are displayed together only as a high-level market mapping.
  • PwCC and HashiCorp acquisition plans are equity-plan legacies, not evidence of a separate current salary-band system. Public evidence of formal post-acquisition band harmonization was not found.

Approximate peer-level mapping

IBM levelConsulting / IT servicesProduct-tech analogueCaution
Trainee / B6Graduate / Analyst / AssociateEntry engineer (often L3/L4 depending on company)Company ladders differ; not a job-equivalence guarantee.
B7Consultant / Senior AnalystEngineer / mid-level ICIBM “Staff” title can sound more senior than peer-company “Staff Engineer.”
B8Senior Consultant / Manager / AdvisorySenior Engineer / first-line managerManagement and IC tracks diverge.
B9Senior Manager / Principal ConsultantStaff/Senior Staff or Senior ManagerRole family drives mapping.
B10Associate Partner / Principal / STSMPrincipal / senior leadershipNot a universal VP equivalent.
DDirector / Partner / DistinguishedDistinguished / DirectorVery selective; equity incidence rises.
FElite technical fellowFellowExtremely sparse market data.
VP+Corporate executiveCorporate executiveUse role scope and disclosed pay, not band-name equivalence.

Compensation by Band — Bengaluru

Low / median / high annual estimates in INR, converted at 5 August 2026 mid-market FX. Values are observed anchors or modeled from IBM and local-market ratios — not an IBM salary schedule.

BandTitleBaseVariableTotal TCEquity
Trainee
Graduate / Trainee / Apprentice
0–1 years
₹9.41L₹13.21L0–5%
₹11.69L
₹9.60L₹14.26L
B6
Associate / Entry Professional
0–3 years
₹14.55L₹20.35L0–8%
₹18.00L
₹14.74L₹21.96L
LTPP
B7
Staff / Experienced Professional
2–6 years
₹26.34L₹36.98L2–10%
₹33.30L
₹27.29L₹40.60L
LTPP
B8
Advisory / Lead Professional
5–10 years
₹43.73L₹61.42L5–12%
₹57.80L
₹47.35L₹70.54L
LTPP
B9
Senior / Principal Professional
8–15 years
₹51.53L₹72.35L8–18%
₹71.31L
₹58.47L₹86.99L
LTPP
B10
Senior Technical Staff / Executive-track Professional
12–20 years
₹59.61L₹83.76L10–25%
₹85.57L
₹70.16L₹1.04Cr
LTPP
D
Distinguished Engineer / Director
15–25+ years
₹74.73L₹1.05Cr15–35%
₹1.14Cr
₹93.55L₹1.39Cr
LTPP
F
IBM Fellow / Elite Technical Executive
20–30+ years
₹95.83L₹1.35Cr20–40%
₹1.52Cr
₹1.25Cr₹1.86Cr
LTPP
VP
Vice President
18–28+ years
₹2.85Cr₹6.18Cr30–80%
₹11.41Cr
₹4.75Cr₹23.77Cr
LTPP
SVP
Senior Vice President / Named Executive Officer
22–32+ years
₹9.50Cr₹11.89Cr135%
₹166.32Cr
₹118.43Cr₹179.12Cr
LTPP
Vice Chair
Vice Chairman
25–35+ years
₹11.12Cr₹11.12Cr135%
₹154.36Cr
₹102.79Cr₹154.36Cr
LTPP
CEO
Chief Executive Officer
25–35+ years
₹14.26Cr₹14.26Cr233%
₹361.18Cr
₹239.05Cr₹385.01Cr
LTPP
Observed + modeledObserved + modeledModeledOfficial disclosedPublic salary observation(s) available for this country/city; low/high and missing bands are modeled. SVP, Vice Chairman and CEO rows are IBM global officer observations converted into INR; VP is a planning model. They are not evidence that the role is based in Bengaluru.

Total Compensation Range by Band

Total compensation in Bengaluru, trainee through Band F. Officer bands (VP, SVP, Vice Chairman, CEO) are excluded to keep the employee-band scale readable.

Trainee₹9.60L₹14.26LBand 6₹14.74L₹21.96LBand 7₹27.29L₹40.60LBand 8₹47.35L₹70.54LBand 9₹58.47L₹86.99LBand 10₹70.16L₹1.04CrBand D₹93.55L₹1.39CrBand F₹1.25Cr₹1.86Cr₹0₹50.00L₹1.00Cr₹1.50Cr₹2.00Cr

Global Footprint & Pay Arbitrage

IBM does not disclose city-level headcount. Hub labels reflect IBM’s operating footprint, worksite and H-1B evidence; the largest observable delivery concentration is in India, with major U.S. worksites in Atlanta, Durham, Dallas, San Jose, Phoenix, Coppell, Austin, New York and New Jersey.

264,300
Employees at IBM and wholly owned subsidiaries, 31 Dec 2025
8,700
Employees at less-than-wholly-owned subsidiaries
~13,800
Complementary workforce
27
Cities modeled across 13 countries
Observed-anchor cities
Bengaluru · Hyderabad · Pune · New York · Seattle · London · Sydney · Auckland · Frankfurt · Amsterdam · Singapore · Toronto
Modeled / market-anchor cities
Noida / Delhi NCR · Chennai · Mumbai · Kolkata · Dallas · San Francisco Bay Area · Atlanta · Edison / New Jersey · Chicago · Melbourne · Munich · Stockholm · Dubai · Riyadh · Johannesburg

Global pay-arbitrage examples — modeled median total compensation (USD)

BandBengaluruNew YorkNY / BLRLondonSydney
B6$18.9K$131.0K6.9×$53.7K$51.0K
B7$35.0K$165.0K4.7×$81.6K$84.6K
B8$60.8K$212.0K3.5×$117.3K$128.3K
B9$75.0K$309.0K4.1×$171.0K$170.0K
B10$90.0K$426.0K4.7×$205.0K$220.0K

Nominal total-compensation comparisons, not purchasing-power parity or cost-to-company. Tax, retirement benefits, healthcare, equity, bonus funding and role mix differ.

United States technical and management anchors (Levels.fyi)

TrackBandObserved totalComponentsSource
Software engineeringB6$137kBase $132k; stock $1.2k; bonus $3.6kS8
Software engineeringB7$165kBase $157k; stock $4k; bonus $3.4kS8
Software engineeringB8$212kBase $192k; stock $12.8k; bonus $7.8kS8
Software engineeringB9~$295kBase ~$264k; stock ~$20k; bonus ~$10.8kS8
Software engineeringBand D$483,398Base $257,472; annualized stock $138,785; bonus $87,141S7, S8
Software engineering managementB8$190kBase $188k; stock $1.4k; bonus $0.9kS9
Software engineering managementB9$228,306Base $209,649; stock $16,286; bonus $2,371S9
Software engineering managementB10~$271kBase ~$245k; stock ~$21.1k; bonus ~$5.3kS9
Software engineering managementBand DUp to ~$581kMedian page range; sample-sensitiveS7, S9

India and Australia observed anchors

MarketRole / bandObserved totalComponents / noteSource
IndiaSoftware Engineer B7 / Staff Engineer₹3,149,057Base ₹2,974,966; stock ₹130,986; bonus ₹43,105S10
IndiaSolution Architect B7–B10₹2.60m at B7 to ~₹10.61m at B10Role-specific sample; not a universal band tableLevels.fyi role page
AustraliaSoftware Engineering Manager B9A$212,986Base ~A$199k; annualized stock ~A$14.5kS11
Base salary
Contract salary before variable, equity and most benefits. Some markets quote retirement contributions inside or outside headline salary; Australia offers must be checked for superannuation inclusion.
Variable pay
Target percentages are indicative for regular bands. IBM does not publish a universal band-by-band target table. Sales compensation and executive AIP are separate plan families.
Total compensation / CTC
Modeled tables include base, target variable and expected annualized equity/benefit value where market sources report it; they are not payroll CTC definitions.
Onshore / offshore
Equivalent roles in the U.S., UK, Australia and Singapore command higher nominal USD pay than India delivery-center roles. Temporary-assignment packages can include per diem, housing, immigration and tax items not captured in local-hire ranges.

Annual review and hike cycle

IBM’s CHRO confirmed a new performance-management system in 2025 with annual feedback across business outcomes, skills and behaviours. Employee reporting often places salary actions around May–June, but IBM has not published a single global effective date or 2026 company-wide hike percentage. Mid-year corrections and off-cycle adjustments are therefore recorded as not publicly disclosed.

Observed + modeledCities without a direct public observation use IBM public/crowdsourced anchors and local market ratios; they satisfy comparison coverage, not proof of a major IBM office.

Variable Pay & Annual Incentive Plan

Regular-band target percentages are indicative market mixes — IBM publishes no universal band-by-band target table. Only the executive AIP pool factor and PSU cycle payouts are disclosed.

BandIndicative targetMechanismRecent payout evidenceCalculation
Trainee0–5%Annual or business-unit program; project/shift incentives may be separateNot publicly disclosedRole and local program; no public global formula
B60–8%GDP/annual incentive where eligible; local plan rules varyNot publicly disclosedBusiness outcomes, skills and behaviours; funding depends on company/unit results
B72–10%GDP/annual incentive where eligibleNot publicly disclosedCompany/business-unit and individual performance
B85–12%Annual incentive; some sales roles use separate sales plansNot publicly disclosedCompany/business-unit, individual outcomes and role plan
B98–18%Annual incentive; leadership discretion/calibrationNot publicly disclosedBusiness outcomes, skills, behaviours and plan funding
B1010–25%Annual incentive plus possible long-term awardsNot publicly disclosedEnterprise/unit scorecard and individual contribution
D15–35%Annual incentive plus long-term equityNot publicly disclosedEnterprise/unit performance, leadership impact and individual outcomes
F20–40%Annual incentive plus significant long-term equityNot publicly disclosedStrategic and technical impact; no standardized public formula
VP30–80% targetAnnual incentive plus long-term equityNot publicly disclosedEnterprise/business-unit scorecards and individual leadership impact
SVP135% AIP targetAnnual AIP; long-term equity granted separately2025 AIP pool factor: 150% for disclosed NEO frameworkRevenue/growth, operating profit/margin, free cash flow and strategic objectives; individual factor
ViceChair135% AIP targetAnnual AIP; long-term equity separately2025 AIP pool factor: 150% for disclosed NEO frameworkEnterprise scorecard and individual performance
CEO233% AIP targetAnnual AIP; PSU/RSU/options as long-term pay2025 AIP paid $5.25m on $3.5m target (150%)Enterprise scorecard approved by Compensation Committee; individual performance

Executive AIP and long-term payout history

150%
2025 executive AIP
Pool factor; CEO received $5.25M versus $3.5M target. Maximum can exceed target.
113%
2023–2025 PSU cycle
Payout cited for the disclosed cycle; performance units can pay above or below target.
n/d
Regular-employee GDP FY2023–25
Not publicly disclosed globally. Do not infer the executive payout factor applies to employees.

Regular-employee / Consulting model

Reporting on IBM Consulting’s 2025 performance-year model described one annual assessment across business outcomes, skills and behaviours, with a 15% top / 70% core / 15% low distribution and GDP multipliers of 2× / 1× / 0× when the pool is funded. The distribution and GDP multipliers should not be generalized beyond IBM Consulting without plan documents.

Unique mechanics and exclusions

  • Sales roles can have quota/commission plans distinct from GDP/AIP.
  • Project incentives, shift allowances, on-call, utilization and client-site payments vary by geography and role; no global public rate card was found.
  • Spot/retention awards and off-cycle salary corrections can occur, but frequency and amounts are not publicly disclosed.
  • Company, segment, business-unit and individual performance can affect funding and payout; the exact weighting is plan-specific.

Equity — LTPP, RSU, PSU, Options & ESPP

The IBM 2026 Long-Term Performance Plan (approved 28 April 2026) replaces four prior plans for new grants. The ESPP is employee-funded share purchase at a 15% discount and should not be treated as a company-granted RSU.

IBM 2026 Long-Term Performance Plan
Restricted Stock Units (RSUs), Performance Share Units (PSUs), Stock options, Stock appreciation rights (SARs), Restricted stock, Cash-based awards · Active for new grants from 28 April 2026
Official disclosed
Pool: Approximately 80.0 million shares at the 23 February 2026 record-date construct: 40,357,987 incremental shares plus 39,642,013 then remaining under prior plans; final effective-date carryover can differ.
Eligibility: Employees, officers and other service providers may be selected; actual grants are discretionary. Pricing: Options and SARs generally must have an exercise/base price at least fair market value on grant date. Vesting: Generally at least one year; up to 5% of the pool may be exempt from the minimum-vesting rule. Executive awards commonly use multi-year vesting/performance periods. Term: Options/SARs cannot exceed 10 years. Repricing: No repricing or cash buyout of underwater options/SARs without stockholder approval, subject to plan exceptions.
IBM 2026 Proxy; 28 April 2026 Form 8-K; 2026 LTPP plan document.
IBM Employees Stock Purchase Plan (ESPP)
Employee share purchase · Active as of 31 December 2025
Official disclosed
Pool: Approximately 6.6 million shares available at 31 December 2025; employees purchased approximately 2.1 million shares during 2025.
Eligibility: Eligible employees; country and payroll eligibility can vary. Pricing: 15% discount from average market price on purchase date. Vesting: Shares are purchased in semi-annual offering periods; this is not an RSU vesting plan. Term: Payroll deductions up to 10% of eligible compensation; $25,000 annual purchase cap and 1,000-share cap per offering period. Repricing: Not applicable.
IBM 2025 Annual Report, Note T, p.102–103.
IBM 1999 Long-Term Performance Plan
Legacy long-term awards · Closed to new grants after 28 April 2026; outstanding awards continue
Official disclosed
Pool: 23,538,036 shares remained at the 23 February 2026 record date and were eligible to roll into the 2026 plan, subject to activity through the effective date.
Eligibility: No new grants after 2026 plan effective date. Pricing: Legacy award terms continue. Vesting: Outstanding awards retain original schedules. Term: Per original award. Repricing: Per original plan and award.
IBM 2026 Proxy.
PWCC Acquisition Long-Term Performance Plan
Acquisition-related legacy awards · Closed to new grants after 28 April 2026; outstanding awards continue
Official disclosed
Pool: 10,567,356 shares remained at the 23 February 2026 record date and were eligible to roll over, subject to effective-date activity.
Eligibility: Historically limited to former PwCC employees; not used to fund senior-executive awards. Pricing: Legacy award terms continue. Vesting: Outstanding awards retain original schedules. Term: Per original award. Repricing: Per original plan and award.
IBM 2025 Form 10-K; IBM 2026 Proxy.
IBM 2001 Long-Term Performance Plan
Legacy long-term awards · Closed to new grants after 28 April 2026; outstanding awards continue
Official disclosed
Pool: 183,751 shares remained at the 23 February 2026 record date and were eligible to roll over, subject to effective-date activity.
Eligibility: No new grants after 2026 plan effective date. Pricing: Legacy award terms continue. Vesting: Outstanding awards retain original schedules. Term: Per original award. Repricing: Per original plan and award.
IBM 2026 Proxy.
IBM HashiCorp Acquisition Long-Term Performance Plan
Assumed/acquisition-related RSUs and options · Closed to new grants after 28 April 2026; outstanding awards continue
Official disclosed
Pool: 5,352,870 shares remained at the 23 February 2026 record date and were eligible to roll over, subject to effective-date activity.
Eligibility: Employees who were not IBM employees immediately before the HashiCorp acquisition closing. Pricing: Legacy/assumed award terms. Vesting: Outstanding awards retain original schedules. Term: Per original award. Repricing: Per original plan and award.
IBM 2025 Form 10-K; IBM 2026 Proxy.

2026 LTPP mechanics

TermFindingSource
Effective date28 Apr 2026 after stockholder approvalS3
Pool construct40,357,987 incremental shares plus 39,642,013 shares remaining under prior plans at 23 Feb 2026, producing an 80,000,000-share record-date construct; effective-date carryover may differS2, S3
Prior-plan record-date balances1999 Plan 23,538,036; PWCC 10,567,356; HashiCorp 5,352,870; 2001 Plan 183,751S2
Eligible recipientsSelected employees, officers and other service providers; grant selection is discretionaryS4
Award typesOptions, SARs, restricted stock, RSUs, other stock-based awards, performance awards and cash-based awardsS4
Option/SAR priceGenerally at least fair market value on grant dateS4
Maximum term10 years for options/SARsS4
Minimum vestingGenerally one year; up to 5% pool carve-outS2, S4
RepricingStockholder approval protection against repricing/buyout of underwater options/SARs, subject to plan exceptionsS4
Estimated lifeProxy estimated approximately five years based on historical grant practiceS2

Employees Stock Purchase Plan

Discount
15% off average market price on purchase date
Payroll deduction
Up to 10% of eligible compensation
Offering cadence
Semi-annual
Participant caps
$25,000 of common stock per calendar year; 1,000 shares in an offering period
2025 purchases
Approximately 2.1m shares; average market price $222
Available pool
Approximately 6.6m shares at 31 Dec 2025

Company-wide grant activity and utilization — 2025

$1.715B
Pre-tax stock compensation expense
2025; up $404M year over year
$1.562B
RSU fair value granted
2025
$239M
PSU fair value granted
2025
1,949,882
Options granted
Weighted-average exercise price $262
9,658,974
Options outstanding
31 Dec 2025
3,111,996
Options vested / exercisable
31 Dec 2025
$233M
Option exercise cash proceeds
2025; 1,698,270 options exercised, $231M intrinsic value
$2.3B
Unrecognized compensation cost
Over weighted-average ~2.5 years

Vesting and performance

AwardTypical disclosed treatmentCaveat
Executive RSUs25% on each of the first four grant anniversaries for disclosed recurring awardsAward agreement controls; other employee schedules can differ. [S2]
Executive PSUsThree-year performance period; 2025 PSUs measure 1 Jan 2025–31 Dec 2027 and pay in Feb 2028Payout can range from threshold to maximum based on performance. [S2]
Stock options25% per year over four years; 10-year contractual termAcquisition/other grants can differ. [S1]
Employee-market observationsMultiple RSU schedules reported, including annual/quarterly or 50% in years 2 and 4Crowdsourced; award agreement prevails. [S7][S9]

Equity policy by hierarchy level — illustrative annual grant (USD)

Trainee / pre-bandNo typical grantDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. No typical grant found.
Band 6$0.0–$2.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band 7$0.0–$6.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band 8$5.0K–$20.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band 9$15.0K–$50.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band 10$25.0K–$90.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band D$75.0K–$250.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Band F$150.0K–$500.0KDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Vice President$250.0K–$1.5MDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Senior Vice President$7.0M–$16.0MDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Vice Chairman$9.0M–$14.0MDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.
Chairman, President & CEO$30.6M–$30.6MDiscretionary award eligibility under the 2026 LTPP; award not guaranteed. Illustrative annualized grant range, not company policy.

B6–VP grant ranges are market-model estimates, not IBM policy; IBM does not publish a minimum band threshold or standard grant matrix. SVP, Vice Chairman and CEO values are anchored in 2025 proxy awards. Share equivalents use the $233.43 close on 6 August 2026 and ignore option valuation discounts and PSU performance.

Recent officer grants — 26 February 2026

PersonAwardSharesExercise priceClassification
Arvind Krishna
Chairman, President & CEO
RSU grant22,518Grant; no cash transaction · S32 · SEC Form 4 filed 2026-02-27
Arvind Krishna
Chairman, President & CEO
Stock option grant90,071$243Exercise price; grant, not exercise · S32 · SEC Form 4 filed 2026-02-27
James Kavanaugh
SVP, Finance & Operations; CFO
RSU grant10,364Grant; no cash transaction · S33 · SEC Form 4 filed 2026-02-27
James Kavanaugh
SVP, Finance & Operations; CFO
Stock option grant41,455$243Exercise price; grant, not exercise · S33 · SEC Form 4 filed 2026-02-27
Gary Cohn
Vice Chairman
RSU grant10,565Grant; no cash transaction · S34 · SEC Form 4 filed 2026-02-27
Gary Cohn
Vice Chairman
Stock option grant42,258$243Exercise price; grant, not exercise · S34 · SEC Form 4 filed 2026-02-27
Robert Thomas
SVP, Software & Chief Commercial Officer
RSU grant10,565Grant; no cash transaction · S35 · SEC Form 4 filed 2026-02-27
Robert Thomas
SVP, Software & Chief Commercial Officer
Stock option grant42,258$243Exercise price; grant, not exercise · S35 · SEC Form 4 filed 2026-02-27

The four Forms 4 state that the RSUs and options vest in four annual installments beginning 26 February 2027; the options expire 25 February 2036.


Executive Compensation — 2025

2025 Summary Compensation Table values from the 2026 proxy are grant-date accounting values, not cash received. Arvind Krishna is Chairman, President & CEO; the AIP target is 233% of salary and paid at a 150% pool factor for 2025.

CEO total (2025, Arvind Krishna)
$38.0M
Equity dominates: 80.5% of the reported total is grant-date stock and option value
4%
14%
81%
Salary $1.5M
AIP $5.3M
Equity $30.6M
Base salary$1,500,000
Annual Incentive Plan (150% of $3.5M target)$5,250,000
Stock awards (grant-date)$23,988,586
Option awards (grant-date)$6,606,312
Change in pension value$42,970
All other compensation$601,817
2025 total$37,989,685
CEO-to-median pay ratio
765:1
Median employee total $49,630 · base $48,001 · Median employee selected as of 1 Oct 2025.
Peer CEO comparison — 2025
IBM · Arvind Krishna$38.0M
IBM 2026 proxy.
Accenture · Julie Sweet$29.6M
Peer proxy observation; fiscal-year timing differs.
Cisco · Chuck Robbins$52.8M
Peer proxy observation; grant-cycle effects apply.
Hewlett Packard Enterprise · Antonio Neri$23.5M
Peer proxy observation.
Microsoft · Satya Nadella$96.5M
Peer proxy observation; larger market cap and equity weighting.
Oracle · Safra Catz$1.1M
Low reported total reflects grant-cycle timing; not an apples-to-apples ongoing-pay measure.

Peer values are respective proxy observations and are sensitive to fiscal-year timing, one-time awards, grant cycles and accounting valuation. Oracle’s low reported year is a particularly poor proxy for normalized annual opportunity.


Named Executive Officers & Board

2025 Summary Compensation Table totals for the five named executive officers, plus outside-director pay. Non-CEO NEOs carry a 135% AIP target; equity was 75–81% of every reported total.

Arvind Krishna · Chairman, President & CEO$38.0M
Salary $1.5M · AIP $5.3M · Stock $24.0M · Options $6.6M · Pension/other $644.8K · Equity 80.5%
James Kavanaugh · SVP, Finance & Operations; CFO$18.8M
Salary $1.3M · AIP $2.6M · Stock $11.5M · Options $3.2M · Pension/other $320.0K · Equity 77.9%
Robert Thomas · SVP, Software & Chief Commercial Officer$17.5M
Salary $1.1M · AIP $2.4M · Stock $10.8M · Options $3.0M · Pension/other $212.8K · Equity 78.7%
Gary Cohn · Vice Chairman$16.2M
Salary $1.2M · AIP $2.4M · Stock $9.8M · Options $2.7M · Pension/other $152.0K · Equity 77.3%
Anne Robinson · SVP & Chief Legal Officer$12.5M
Salary $999.5K · AIP $2.1M · Stock $7.3M · Options $2.0M · Pension/other $87.2K · Equity 74.7%

Board of Directors — 2025

DirectorFees / retainerOtherTotal
Marianne C. Brown$365,000$26,416$391,416
Thomas Buberl$365,000$86,081$451,081
David N. Farr$365,000$146,043$511,043
Alex Gorsky$430,000$214,291$644,291
Michelle J. Howard$365,000$100,704$465,704
Andrew N. Liveris$390,000$279,935$669,935
F. William McNabb III$365,000$98,009$463,009
Michael Miebach$365,000$18,124$383,124
Martha E. Pollack$365,000$115,522$480,522
Peter R. Voser$400,000$202,016$602,016
Frederick H. Waddell$390,000$156,576$546,576
Alfred W. Zollar$365,000$55,078$420,078

At least 64% of the outside-director annual retainer must be deferred into Promised Fee Shares under the DCEAP, and directors are expected within five years to hold stock-based interests equal to eight times the equity portion of the annual retainer.

Other KMP and regional heads

IBM discloses named executive officers and senior leadership titles, but does not publicly disclose compensation for every CHRO, CTO, regional president, Company Secretary or APAC/EMEA leader. For those positions, individual compensation is not publicly disclosed unless the person is a named executive officer or appears in a filing.


Insider Filings — SEC Forms 4

IBM is an NYSE-listed U.S. issuer, so BSE/NSE, SEBI SAST and promoter-group filing concepts do not apply. Recent activity is tax withholding on RSU vesting and small director purchases.

DatePersonTransactionSharesPriceValue
2026-07-01
Anne Robinson
SVP & Chief Legal Officer
Tax withholding
Tax withholding on RSU vesting · Large / flagged · S26 · SEC Form 4
4,035$286.73$1.2M
2026-02-25
Michelle Howard
Director
Purchase
Open-market purchase · Routine-size · S30 · SEC Form 4
50$237.83$11.9K
2026-02-25
Michael Miebach
Director
Purchase
Open-market purchase · Routine-size · S31 · SEC Form 4
434$233.33$101.3K
2026-02-21
Arvind Krishna
Chairman, President & CEO
Tax withholding
Tax withholding on RSU vesting · Large / flagged · S27 · SEC Form 4
8,470$256.42$2.2M
2026-02-21
James Kavanaugh
SVP, Finance & Operations; CFO
Tax withholding
Tax withholding on RSU vesting · Large / flagged · S28 · SEC Form 4
4,928$256.42$1.3M
2026-02-21
Gary Cohn
Vice Chairman
Tax withholding
Tax withholding on RSU vesting · Large / flagged · S29 · SEC Form 4
4,194$256.42$1.1M

Reading guide

Tax withholding on vestIssuer withholds shares to settle payroll tax when RSUs vest; not a discretionary bearish sale.
Open-market purchaseDirector or officer buys shares with own funds — the only genuinely discretionary buy signal here.
RSU / option grantAnnual award reported on Form 4; a stock-option grant is not an exercise and involves no cash.
Large / flaggedTransactions above roughly $1M are flagged for scale, not for intent.

2025 aggregate option exercise activity: IBM reported 1,698,270 options exercised, $231M aggregate intrinsic value and $233M cash proceeds. Individual executive exercise attribution beyond filed Forms 4 is not inferred. No SAST-equivalent or promoter-group transaction exists under IBM’s U.S. issuer structure.


Benefits & Perks

Country statutory minima and IBM-specific benefits are separated. Unless an IBM plan document is cited, insurer, coverage amount, leave days, contribution rate or allowance should be verified in the local offer and benefits portal.

India

  • Retirement. Employees’ Provident Fund statutory baseline is generally 12% of eligible wages from employer and employee, subject to Indian rules; IBM-specific treatment above statutory minima is not publicly disclosed.
  • Gratuity. Statutory gratuity eligibility applies under Indian law; the company’s precise plan design and actuarial terms are not published at employee-detail level.
  • Health. Employee-reported health insurance exists, but current insurer, sum insured, dependent tiers and premium split are not consistently public. Verify in the offer/benefits portal.
  • Leave. Maternity leave must meet Indian statutory requirements; exact earned, sick, casual and paternity leave by employing entity are not publicly disclosed.
  • Allowances. Transport/cab, internet, shift, meal and relocation support are role/site-dependent; no universal IBM India schedule was found.
  • Learning. IBM SkillsBuild and internal learning/certification programs are publicly visible; exact reimbursement caps are not public.

Global IBM benefits

  • Learning. IBM maintains large-scale skills and learning platforms, internal mobility, credentials and role-based education. Reimbursement limits are not globally standardized in public materials.
  • Hybrid work. Work arrangement depends on role, client obligations, team and geography; no single global remote-work entitlement was found.
  • Wellbeing. IBM publicly describes wellbeing resources and employee listening; country plans typically include EAP and local wellness offerings.
  • Pay equity. IBM states it conducts pay-alignment assessments in all countries and reviews findings with senior leadership.
  • Employee listening. More than 200,000 employees participated in IBM’s 2025 engagement survey according to the annual report.
  • Mobility. International assignment, onsite, relocation and travel allowances depend on business need and assignment policy; public rate cards were not found.

Official global workforce facts

IBM states that it conducted pay-alignment assessments in all countries and that more than 200,000 employees participated in its 2025 engagement survey. Ask for employer cost versus employee deduction, waiting periods, dependent coverage, retirement vesting, leave classification, equity tax withholding and ESPP country availability in writing.


Performance Review & Pay Progression

IBM’s CHRO described the system introduced in the 2025 performance year as annual feedback across business outcomes, skills and behaviours. The 15/70/15 distribution and GDP multipliers come from reporting on IBM Consulting, not an IBM-wide published policy.

Assessment framework

Business outcomes
Delivery, commercial, client, operational or product results appropriate to role.
Skills
Acquired and demonstrated role-critical skills, credentials and capability growth.
Behaviours
How results are achieved, including collaboration, leadership and IBM values.

Reported IBM Consulting distribution — 2025 performance year

15%
Top
GDP 2× target
70%
Core
GDP 1× target
15%
Low
GDP 0× target

Reported for IBM Consulting’s 2025 performance-year model, not proven as a universal forced curve for all IBM employees. S23 · The Register (IBM Consulting 2025 performance-year distribution and GDP multipliers); S24 · IBM CHRO (2025 introduction and three assessment dimensions).

Appraisal cycle

PhaseIndicative timingConfidence
Goal setting / role prioritiesEarly calendar year / business planning cycleExact global dates not publicly disclosed
Ongoing check-ins and skills evidenceThroughout yearManager and business-unit cadence
Year-end assessment and calibrationYear end to early following yearAnnual model confirmed; exact cut-offs vary
Salary actions / incentive communicationOften reported around May–June for salary actions; incentive timing variesEmployee-reported; not an official universal calendar

Promotion timing and hikes

TransitionTypical time (years)Indicative promotion increase
TraineeB60.5–1.58–25% typical market estimate
B6B72–410–25% estimate
B7B82–510–25% estimate
B8B93–610–30% estimate
B9B103–710–30% estimate
B10DHighly selectiveNot publicly disclosed
DFExceptional appointmentNot publicly disclosed

Promotion timelines and hike ranges are market estimates. IBM does not publish a global time-in-band or rating-to-hike matrix. Probation duration, confirmation process and notice periods are employing-entity and country specific; offer letters and local HR policy govern.

Headcount, attrition and salary-hike disclosure status

ItemLatest reliable findingStatus
Employee count264.3k wholly owned; 8.7k less-than-wholly-owned; 13.8k complementary at 31 Dec 2025Official
Workforce rebalancing charge$670m in 2025 versus $696m in 2024Official
2026 company-wide hike %Not publicly disclosedDo not estimate as fact
Attrition rateIBM does not publish a current company-wide attrition percentage comparable with Indian IT-services peersNot publicly disclosed
Campus joining delays / offer revisionsNo comprehensive verified company-wide 2026 disclosure locatedNot publicly disclosed
Median remuneration trendOnly the current CEO-pay-ratio median is directly comparable in the 2026 proxy; methodology changes can impair trend comparisonUse proxy carefully

H-1B / LCA Visa Footprint

H-1B LCA wages are offered base wages associated with filings, not total compensation; filings do not guarantee hiring or approval and can include amendments and extensions. Counts from MyVisaJobs; salary distribution from H1BGrader.

FY2026 filings (to 8 Jul)
To 8 Jul · 602 LCAs
990 I-129 petitions · filings, not people
Median base wage
$129.5K
Average $145.6K
Modeled P25 – P75
$105.0K$170.0K
Range $62.2K$388.3K
Approval rate
98.38%
974 approvals / 16 denials

FY2024–FY2026 trend

FYApprovals / denialsP25Median · min–maxP75Average
FY2026
To 8 Jul · 602 LCAs; 990 I-129 petitions
974 / 16
98.38%
$105.0K$129.5K
$62.2K – $388.3K
$170.0K$145.6K
FY2025
3,095 LCAs
2,045 / 28
98.65%
$96.0K$115.2K
$61.9K – $466.0K
$151.0K$129.9K
FY2024
Not captured
2,906 / 14
99.52%
$140.1K

Major worksites — modeled median base wage

Atlanta, GA
649 worksite filings
$127.5K
Durham, NC
549 worksite filings
$122.0K
Dallas, TX
384 worksite filings
$126.0K
San Jose, CA
381 worksite filings
$157.0K
Phoenix, AZ
320 worksite filings
$121.0K
Coppell, TX
319 worksite filings
$124.0K
Austin, TX
306 worksite filings
$135.0K
New York, NY
276 worksite filings
$149.0K
Newark, NJ
262 worksite filings
$139.0K
Parsippany, NJ
231 worksite filings
$136.0K

Major job titles in FY2025 filing data

Application Developer
1,915
Package Consultant
638
Application Architect
480
Test Specialist
285
Project Manager
284
Software Developer
272
Data Engineer
270
Software Engineer
246

Approval and interpretation caveats

  • The FY2026 data are year-to-date as of 8 Jul 2026, not a closed fiscal-year total.
  • “Approval rate” is approvals divided by approvals plus denials, not approvals divided by LCAs.
  • H-1B wage fields typically exclude annual bonus, equity and benefits.
  • LCA count, I-129 petition count and unique worker count are different measures.
  • MyVisaJobs provides worksite counts; city P25/median/P75 values are modeled from IBM sponsor-level salary distribution and city cost/role mix, not DOL-published IBM city percentiles.

Key Nuances & Insights

01Bands overlap materially

A band is a role/market architecture, not a guaranteed pay point. Internal ranges overlap, and role family, country, scarcity, tenure and performance can move two employees at the same band far apart.

02IC and management ladders are not mirror images

B8–B10 and Band D appear on both tracks, but titles and scope differ. Distinguished Engineer and IBM Fellow are elite technical appointments, while Director/VP/SVP are leadership designations.

03No public current EVP rung

IBM’s current officer materials prominently use VP, SVP, Vice Chairman and CEO. A standardized EVP band was not found and is not inserted into the hierarchy.

04Equity eligibility is broader than equity incidence

The 2026 LTPP permits grants to selected employees and service providers, but IBM does not publish a minimum band or guaranteed grant matrix. Observed recurring equity rises sharply at senior bands.

05Executive pay is equity-heavy

For the 2025 CEO package, stock and option awards represented more than four-fifths of reported total compensation; annual incentive and salary were smaller components.

06India-to-U.S. arbitrage is role-specific

Equivalent B6–B10 technical compensation can be several times higher in the U.S. in USD terms. The multiplier narrows or widens by city, role scarcity, stock incidence and onsite allowances.

07Consulting and product economics differ

Software, infrastructure, consulting and sales use different revenue/margin models and incentive mechanics. A single “IBM variable-pay percentage” is misleading.

08Lateral and internal gaps are plausible

Public market data and employee reports suggest external hires can be placed higher in range than internal promotees. IBM does not disclose a company-wide lateral premium.

09Onsite is not just salary conversion

Temporary assignment, immigration, tax equalization, per diem and housing rules can create a package that differs from local-hire compensation. No public IBM global rate card was found.

10H-1B wages are offered base wages, not total compensation

LCA wage data omits many bonuses, stock and benefits and reflects filings rather than guaranteed starts. It should not be compared directly with total-compensation observations.

11ESPP and LTPP solve different problems

ESPP is employee-funded share purchase at a discount; LTPP awards are company-granted incentives. Treating ESPP value as an employer RSU grant overstates pay.

12Evidence quality varies by geography

U.S. executive and plan data are high-confidence filings. Employee band data are strongest in the U.S., India, UK and Australia; several other city tables necessarily use transparent modeling.

Evidence classes used in this report

ClassMeaningPermitted interpretation
Official disclosedSEC filing, IBM annual report/proxy, IBM investor release or government statuteHigh confidence for the exact disclosed fact and date.
Observed market anchorLevels.fyi, Glassdoor, PayScale, H-1B source or other employee/filing observationUseful market evidence, but sample size, role mix and self-selection can distort.
Observed anchor + modeled rangeA public median expanded into low/median/high, with missing bands/cities inferred from IBM band ratiosPlanning estimate only; not an IBM pay range.
ModeledDerived from regional anchors, FX and relative band/city differentialsDirectional estimate; validate with current offer and local recruiter.
Not publicly disclosedNo sufficiently reliable public evidence locatedNo estimate substituted unless explicitly labeled.

Structured modeling assumptions

AssumptionValue / method
Salary-range constructionFor observed/modeled professional medians: total low = 82% of median; total high = 122%. Base share declines with seniority; base low/high = 84%/118% of modeled base median.
Executive rowsSVP, Vice Chairman and CEO use disclosed named-executive observations; VP is a planning model. In non-U.S. location tables, executive values are converted global observations, not local-country ranges.
Equity grant sizesB6–VP are illustrative market estimates; SVP/CEO values are anchored in 2025 proxy awards. Share equivalents use the $233.43 closing price on 6 Aug 2026 and ignore option valuation discounts and PSU performance.
Location mediansDirect public observations where available, otherwise ratios from nearby IBM markets and local market salary evidence.
RoundingSalary tables round to practical local and USD units; calculations use unrounded FX before display.

Source-conflict log

TopicConflict / ambiguityResolution
Band D / F salary samplesSome salary pages have sparse or internally inconsistent high-band samples.Use multi-role anchors, flag sparse data and avoid treating one sample as policy.
RSU vesting schedulesCrowdsourced pages show multiple schedules.Use award agreement as controlling; present executive 25% annual schedule separately from employee observations.
2026 LTPP pool80m is a record-date construct; grants/forfeitures through effective date can change carryover.Describe as approximately 80m before effective-date adjustment, not a fixed final pool.
Executive ‘maximum’ valueProxy stock award values at maximum performance differ from summary compensation table target grant-date values.Use Summary Compensation Table for reported total; disclose maximum PSU context separately.
Salary review timingEmployee reports vary by unit/country.Do not state a single official date; describe May–June only as employee-reported.

FX rates used — 1 USD equals, mid-market 2026-08-05

95.0734
INR
1.41836
AUD
0.74282
GBP
1.70129
NZD
0.8661
EUR
9.498
SEK
1.28142
SGD
3.6725
AED
3.75
SAR
1.40199
CAD
16.328
ZAR

Rates are for comparability, not payroll or tax conversion. 36 registered sources underpin this report: SEC filings (annual report, proxy, 8-K, LTPP exhibit, Forms 4), IBM investor releases, Levels.fyi anchors, MyVisaJobs and H1BGrader H-1B data, statutory benefit sources and XE FX tables. Compensation intelligence, not an offer, tax, immigration, accounting or legal opinion.


Recent News & Developments

Compensation, workforce and governance timeline from SEC filings, IBM investor releases and press reporting.

22 Jul 2026
IBM reported second-quarter 2026 results and revised full-year constant-currency revenue-growth expectations to 4–5%.

Quarter revenue was approximately $17.2bn; software and infrastructure grew faster than consulting. Compensation implications are indirect: business-unit pools and hiring demand can diverge by segment.

S6 · IBM investor relations.
28 Apr 2026
Stockholders approved the IBM 2026 Long-Term Performance Plan.

The new plan replaced four prior plans for new grants and introduced an approximately 80m-share record-date pool construct.

S2 · IBM proxy; S3 · IBM Form 8-K.
26 Feb 2026
Annual executive equity cycle granted RSUs and stock options to senior officers.

The disclosed RSUs and options vest in four annual installments beginning 26 February 2027; the options carry a $243.22 exercise price and expire 25 February 2036.

S32–S35 · SEC Forms 4.
31 Dec 2025
IBM ended 2025 with 264,300 employees at IBM and wholly owned subsidiaries.

It also reported 8,700 employees at less-than-wholly-owned subsidiaries and an estimated 13,800 complementary workforce.

S1 · IBM 2025 Annual Report.
4 Nov 2025
IBM said it would reduce a low-single-digit percentage of its global workforce.

IBM indicated U.S. employment was expected to remain roughly stable despite role rebalancing. The company recorded $670m of workforce-rebalancing charges in 2025.

S25 · Reuters; S1 · IBM 2025 Annual Report.
24 Feb 2025
IBM Consulting’s 2025 performance-year incentive framework was reported.

The reported model uses one year-end review, a 15/70/15 distribution and GDP multipliers of 2×/1×/0× when funded; IBM’s CHRO later confirmed the broader three assessment dimensions.

S23 · The Register; S24 · IBM CHRO.
Last updated August 26, 2026