Executive compensation

Nonqualified deferred compensation

IBM Excess 401(k) Plus Plan — U.S.

General Description and Purpose

Compensation Eligible for Deferral under Excess 401(k) Plus Plan

Deferred IBM Shares

Excess 401(k) Plus Plan Funding

IBM Matching Contributions

IBM Automatic Contributions

IBM Transition Credits

Earnings Measures

* Performance is calculated from the fund’s inception date, July 1, 2015

** Performance includes dividend equivalent reinvestment

Payouts, Withdrawals and Other Distributions

  1. Lump sum upon termination;
  2. Lump sum in February of the year following termination; or
  3. Annual installments (beginning February 1 of the year following termination) for a number of years (between two and ten) elected by the participant.
  1. Lump sum upon separation;
  2. Lump sum in February of the year following separation; or
  3. Annual installments (beginning February 1 of the year following separation) for a number of years (between two and ten) elected by the participant.

However, if the participant has elected annual installments and the total balance of the participant’s Basic Account upon a separation from service from IBM is less than 50% of the applicable Internal Revenue Code compensation limit (in 2016, 50% of this limit was $132,500), the amounts deferred on or after January 1, 2005 are distributed in a lump sum on the date installments would have otherwise begun.

IBM Italy Pension Fund

General Description

Compensation Eligible for Deferral into the Supplementary Plan

Employer Contributions

Earnings Measures

Payouts, Withdrawals and Other Distributions

2016 Nonqualified deferred compensation table

 

Name
(a)
Plan Executive Contributions in Last FY(1)
($)
(b)
Registrant Contributions
in last FY(2)
($)
(c)
Aggregate Earnings in Last FY(3)
($)
(d)
Aggregate Withdrawals/ Distributions
($)
(e)
Aggregate Balance at Last FYE(4)
($)
(f)
V.M. Rometty Basic Account $350,100 Match $350,100 $875,593 $0 $11,531,781
  Automatic 233,400      
Deferred IBM Shares 0   0 791,636 0 4,631,785
Total $350,100   $583,500 $1,667,230 $0 $16,163,566
M.J. Schroeter Basic Account $84,856 Match $68,505 $318,689 $0 $2,017,687
  Automatic 13,701      
Deferred IBM Shares 0   0 0 0 0
Total $84,856   $82,206 $318,689 $0 $2,017,687​
M. Jetter Basic Account $25,750 Match $25,750 $370 $0 $63,706
  Automatic 11,868      
Deferred IBM Shares 0   0 268,352 0 1,570,099
Total $25,750   $37,618 $268,722 $0 $1,633,805​
J.E. Kelly III Basic Account $709,770 Match $80,400 $943,012 $0 $10,711,170
  Automatic 26,800      
Deferred IBM Shares 0   0 91,919 0 537,808
Total $709,770   $107,200 $1,034,931 $0 $11,248,978​
E. Clementi Basic Account $762,771 Match $63,831 $495,421 $0 $3,819,066
  Automatic 12,766      
Deferred IBM Shares 0   0 0 0 0
Supplementary Plan(5) 0   0 43,942 0 1,618,975
Total $762,771   $76,597 $539,363 $0 $5,438,041​

(1) A portion of the amount reported in this column (b) for each named executive officer’s Basic Account, is included within the amount reported as salary for that officer in column (c) of the 2016 Summary Compensation Table. These amounts are: $80,100 for Mrs. Rometty; $31,990 for Mr. Schroeter; $25,750 for Mr. Jetter; $29,370 for Dr. Kelly; and $92,275 for Mr. Clementi.

(2) For each of the named executive officers, the entire amount reported in this column (c) is included within the amount reported in column (i) of the 2016 Summary Compensation Table. The amounts reported as IBM contributions to defined contribution plans in footnote 6 to the 2016 Summary Compensation Table are larger because the amounts reported in that footnote also include IBM’s contributions to the IBM 401(k) Plus Plan.

(3) None of the amounts reported in this column (d) are reported in column (h) of the 2016 Summary Compensation Table because IBM does not pay above-market or preferential earnings on deferred compensation.

(4) Amounts reported in this column (f) for each named executive officer include amounts previously reported in IBM’s Summary Compensation Table in previous years when earned if that officer’s compensation was required to be disclosed in a previous year. Amounts previously reported in such years include previously earned, but deferred, salary and incentive and IBM matching and automatic contributions. This total reflects the cumulative value of each named executive officer’s deferrals, IBM contributions and investment experience, including an $8 quarterly administrative fee.

(5) Amounts disclosed as of December 31,2016 were €41,782 and €1,539,389, respectively, and the exchange rate from euros to U.S. dollars was 1.0517.