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IBM to offer $1,000 stock bonus to staff

IBM to offer $1,000 stock bonus to staff
PTI
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First Published: Mon, Jan 31 2011. 03 31 PM IST
Updated: Mon, Jan 31 2011. 03 31 PM IST
New Delhi: Technology giant IBM on Monday said it will give $1,000 worth of shares to its employees globally as part of its centennial celebrations.
The company will celebrate a hundred years of existence on 16 June this year.
“IBM employees globally, except those at the executive level, will receive USD 1,000 in stock bonuses,” an IBM India spokesperson said.
He, however, declined to comment on IBM’s India headcount, since the company does not disclose country-level employee numbers.
However, industry analysts peg the strength of the company’s India-based workforce at over one lakh. IBM has four lakh employees globally.
“The company is still working on the eligibility criteria for the bonus. However, one of the criteria is that the person has to be an employee (full-timers and part-timers included) of IBM or its wholly-owned subsidiaries before December 31, 2010,” he said.
Eligible IBM employees will be offered ‘restrictive stock units (RSU), under which the employee will be promised returns on the stocks awarded without actually owning them.
This means that at a stock value of $159 (on 28 January), the $1,000 stock bonus will translate into 6-7 stock units.
Also, since these stock incentives will not vest until 2015, anybody quitting the company before 16 June 2015, will no longer be eligible to receive shares.
IBM reported revenues of about $100 billion and record free cash flow of $16.3 billion in 2010.
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First Published: Mon, Jan 31 2011. 03 31 PM IST
More Topics: IBM | Stock Bonus | Staff | Technology | Corporate News |