Big investors are losing patience with IBM chief Ginni Rometty, who remains one of the highest-paid CEOs in not just the tech industry, but among all S&P 500 companies, despite IBM's relatively poor performance under her lead.
At IBM's annual meeting last week, shareholders agreed with a proposal to increase her salary more than 60 percent to $33 million. But the vote narrowly passed, with 46 percent against.
Rometty is in year six of her turnaround plan, and recently lost the confidence of one of her biggest and most famous investors: Warren Buffett, who revealed he's sold a third of his shares since the beginning of the year.
The stock fell 2.51 percent on Friday following the news -- its worst daily performance since April 19 2017 when it dropped 4.92 percent -- making it the worst performing stock in the Dow Jones Industrial Average this week.
Yet, Rometty remains one of the highest paid CEOs in not just the tech industry, but among all S&P 500 companies.
Her $33 million paycheck this year puts her ahead of tech CEOs like Microsoft's Satya Nadella ($18 million), who is successfully steering the company back towards growth, as well as leaders at fast-growing tech giants like Alphabet's Larry Page ($1), Apple's Tim Cook ($9 million) and Amazon's Jeff Bezos ($2 million).
Rometty has presided over 20th straight quarters of declining revenue growth.
Since she became CEO in January 2012, revenue has declined more than 26 percent on a trailing 12-month basis compared to the year before she took over, and net income has fallen nearly 27 percent. Meanwhile, calculations from ISS Analytics show that her disclosed salary has grown by 19 percent per year on average (CAGR) since 2012, concentrated on the final year.