What Is the IBM CEO-to-Worker Pay Ratio?
IBM's CEO-to-worker pay ratio is 400:1 — CEO Arvind Krishna earned $38.0M in 2025, or 400 times the median IBM employee's pay of $95,000. That is broadly in line with large-cap norms.
This page answers a common executive-compensation question: What Is the IBM CEO-to-Worker Pay Ratio?. The answer draws on SEC DEF 14A proxy statements, the public disclosure mechanism for U.S. public-company executive pay. Every public company must file an annual proxy statement disclosing CEO and named-executive-officer compensation in detail. Why this matters for shareholders: executive compensation is the single most-disclosed governance metric at U.S. public companies, and the Dodd-Frank-mandated say-on-pay vote gives shareholders an explicit channel to express approval or dissent. Reading pay data well — including pay-versus-performance, peer-group selection, and time-vesting structures — is a basic part of stock-by-stock fundamental analysis.
The detailed answer below uses the actual proxy-statement filings, explains how to read them, and translates the executive-compensation accounting into the shareholder-relevant interpretation.
IBM Pay Ratio Breakdown
- CEO-to-worker ratio
- 400:1
- CEO total comp
- $38.0M
- Median worker pay
- $95,000
- S&P 500 median ratio
- ~300:1
- Employees
- 282,200
- Pay-Performance grade
- C
Source: IBM SEC DEF 14A proxy statement (Dodd-Frank §953(b) pay-ratio disclosure). S&P 500 median is an industry benchmark.
Public companies have been required to disclose the ratio of CEO pay to median-employee pay in their proxy statements since 2018, under Section 953(b) of the Dodd-Frank Act. At IBM, Arvind Krishna's $37,989,685 total compensation works out to 400 times the $95,000 earned by the company's median employee — a IT Services workforce of roughly 282,200 people.
For context, the typical S&P 500 CEO-to-worker pay ratio runs near 300:1, so IBM's 400:1 figure is meaningfully higher than the large-cap norm. The ratio is driven mostly by equity: Arvind Krishna received $NaN in stock awards and $NaN in option awards in 2025, versus $NaN in base salary. Median worker pay reflects total cash and benefits for the employee at the 50th percentile of the company's global workforce.
Whether a high ratio is "fair" is contested. Critics argue wide gaps signal misaligned incentives and weak labor bargaining power; defenders argue CEO pay is mostly performance-linked equity that only pays out if shareholders gain. IBM's three-year total shareholder return of 14.0% and Pay-for-Performance grade of C (62/100) are the data points to weigh that against.
In the most recent say-on-pay vote, 95.7% of shareholders approved the executive compensation plan. Strong shareholder support signals broad approval of the pay package.
Pay Ratio Inputs
| Component | Amount |
|---|---|
| Total Compensation | $37,989,685 |
| Base Salary | $NaN |
| Stock Awards | $NaN |
| Option Awards | $NaN |
| Median Worker Pay | $95,000 |
| CEO-to-Worker Pay Ratio | 400:1 |
| Pay-Performance Grade | C |
Frequently Asked Questions
IBM's CEO-to-worker pay ratio is 400:1. CEO Arvind Krishna earns approximately 400 times the median worker's pay of $95,000, as disclosed in the company's SEC DEF 14A proxy statement.
The typical S&P 500 CEO-to-worker pay ratio is around 300:1. IBM's 400:1 figure is above that benchmark.
The ratio is driven mainly by equity. Arvind Krishna received $NaN in stock awards and $NaN in option awards in 2025, against base salary of $NaN. The median IBM employee earns $95,000.
Arvind Krishna, CEO of IBM, earned $38.0M in total compensation in 2025, including $NaNM in stock awards and $NaN in base salary.
Arvind Krishna is the chief executive officer of IBM (IBM).
Our Pay-for-Performance Score rates IBM as C (62/100), based on three-year total shareholder return of 14.0%, revenue growth of 4.5%, and shareholder say-on-pay vote approval.
More about IBM
IBM's CEO-to-worker pay ratio is 400:1 — CEO Arvind Krishna earned $38.0M in 2025, or 400 times the median IBM employee's pay of $95,000. That is broadly in line with large-cap norms.
Source: SEC EDGAR DEF 14A proxy statements, 2026.