· These expenses for a named executive officer may include: tax equalization payments related to international assignments, cost of family travel to and attendance at business-related events, business-related local lodging and incidental expenses, and business-related ground transportation expenses (see Ground Transportation below).
IBM Contributions to Defined Contribution Plans
· Amounts represent IBM matching and automatic contributions to the individual accounts for each named executive officer.
· Under IBMs 401(k) Plus Plan, participants hired or rehired by IBM U.S. before January 1, 2005, including Mrs. Rometty, Mr. Kavanaugh and Dr. Kelly, are eligible to receive matching contributions up to 6% of eligible compensation. Participants hired or rehired by IBM U.S. on or after January 1, 2005, including Messrs. Schroeter and Clementi, who complete the plans service requirement, are generally eligible for up to 5% matching contributions. A participants hire/rehire date is measured by a participants most recent U.S. hire date. Mr. Schroeter rejoined IBM U.S. in 2011 after working for IBM Australia from April 1, 2005 to June 30, 2011. Mr. Clementi joined IBM U.S. in 2009 after working for IBM Italy since 1984. In addition, for all eligible participants, IBM makes automatic contributions equal to a certain percentage of eligible compensation, which generally depends on the participants pension plan eligibility on December 31, 2007. In 2018, the automatic contribution percentage was 4% for Mrs. Rometty; 2% for Mr. Kavanaugh and Dr. Kelly; and 1% for Messrs. Schroeter and Clementi.
· Under IBMs Excess 401(k) Plus Plan, IBM makes matching contributions equal to a percentage of the sum of (i) the amount the participant elects to defer under the Excess 401(k) Plus Plan, and (ii) the participants eligible compensation after reaching the Internal Revenue Code compensation limits. Participants hired or rehired by IBM U.S. before January 1, 2005, including Mrs. Rometty, Mr. Kavanaugh and Dr. Kelly, are eligible to receive matching contributions up to 6% of eligible compensation. Participants hired or rehired by IBM U.S. on or after January 1, 2005, including Messrs. Schroeter and Clementi, who complete the plans service requirement, are eligible for up to 5% matching contributions. In addition, for all eligible participants, IBM makes automatic contributions equal to a percentage of the sum of (i) the amount the participant elects to defer under the Excess 401(k) Plus Plan, and (ii) the participants eligible compensation after reaching the Internal Revenue Code compensation limits. The automatic contribution percentage generally depends on the participants pension plan eligibility on December 31, 2007, and in 2018, the automatic contribution percentage was 4% for Mrs. Rometty; 2% for Mr. Kavanaugh and Dr. Kelly; and 1% for Messrs. Schroeter and Clementi.
· For purposes of calculating the matching contribution and the automatic contribution under the 401(k) Plus Plan, the participants eligible compensation excludes the amount the participant elects to defer under the Excess 401(k) Plus Plan.
· See the 2018 Nonqualified Deferred Compensation Narrative for additional details on the nonqualified deferred compensation plans. |
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Life and Travel Accident Insurance Premiums
· Amounts represent insurance premiums paid by IBM on behalf of the named executive officers.
· These executive officers are covered by life insurance policies under the same terms as other U.S. full-time regular employees.
· Life insurance for executives hired or rehired by IBM U.S. before January 1, 2004, including Mrs. Rometty, Mr. Kavanaugh and Dr. Kelly, is two times salary plus annual incentive program target, with a maximum coverage amount of $2,000,000. Life insurance for executives hired or rehired by IBM U.S. on or after January 1, 2004, including Messrs. Schroeter and Clementi, is one times salary plus annual incentive program target, with a maximum coverage of $1,000,000.
· In addition, IBM provides Travel Accident Insurance for most employees in connection with business travel. Travel Accident Insurance for all eligible employees and executives is up to five times salary plus annual incentive target with a maximum coverage amount of $15,000,000.
Perquisites
The following describes perquisites (and their aggregate incremental cost calculations) provided to the named executive officers in 2018.
Personal Financial Planning
In 2018, IBM offered financial planning services with coverage generally up to $15,000 annually for senior U.S. executives, including each named executive officer.
Personal Travel on Company Aircraft
General Information
· Amounts represent the aggregate incremental cost to IBM for travel not directly related to IBM business.
· IBMs security practices provide that all air travel by the Chairman and CEO, including personal travel, be on Company aircraft. The aggregate incremental cost for Mrs. Romettys personal travel is included in column (i) of the 2018 Summary Compensation Table. These amounts also include the aggregate incremental cost, if any, of travel by her family members or other guests on both business and non-business occasions.
· Additionally, personal travel or commutation in 2018 on Company aircraft by named executive officers other than Mrs. Rometty, and the aggregate incremental cost, if any, of travel by the officers family or other guests when accompanying the officer on both business and non-business occasions is also included.
· Also, from time to time, named executive officers who are members of the boards of directors of certain other companies and non-profit organizations travel on Company aircraft to those outside board meetings. These amounts may include travel related to participation on these outside boards.
· Any aircraft travel by named executive officers for an annual executive physical under the corporate wellness program is included in these amounts. |