IBM chief Louis Gerstner took home a compensation package last year that could be worth well over US$100 million - including stock options he received for the first time since 1997.
IBM, which emerged from 2000 relatively unscathed in the midst of a technology burnout, called Chairman and Chief Executive Gerstner's performance "outstanding."
IBM's board awarded him options for 650,000 shares that could be valued at more than US$113.5 million if IBM stock were to appreciate 10 percent over the life of the options, which expire in 2010.
That was in addition to a salary and bonus that together totaled US$10 million.
"In a year of unprecedented volatility and challenge in the marketplace, Mr. Gerstner's performance and leadership in reaffirming IBM as the industry's premier e-business company and in positioning IBM for continued growth was outstanding," IBM said in its report to shareholders.
Gerstner last received options in 1997 - for a whopping 4.4 million shares. He didn't receive any for 1998 and 1999, the proxy showed.
"They take into account the entire compensation picture - salary and bonus," said IBM spokesman Rob Wilson about some of the matters considered by the board in determining whether to award stock options.
"They also do look at (what the executive was awarded in) previous years as well," he added.
Gerstner's salary was US$2 million in 2000, unchanged from 1999, and his bonus rose to US$8 million from US$7.2 million in the previous year, according to the proxy statement filed with the Securities and Exchange Commission.
All other forms of compensation, which includes some long-term rewards, totaled US$4 million.
The 650,000 shares under options expire April 2010 and have an exercise price of US$109.62. In 2000, Gerstner exercised options on 703,156 shares worth about US$60 million.
Despite a general downturn in the technology market that has battered most tech stock prices, IBM is still trading within the low end of last year's range.
Gerstner has gloated at the demise of the dot-coms, which he called the "fireflies before the storm," which during the heady technology explosion made IBM look ponderous.
IBM has so far said nothing to indicate it is feeling the effects of the slowdown in spending on computers by either individual consumers or businesses.
