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IBMers do not quit; $1000 bonus coming your way

By SiliconIndia  |   Monday, 31 January 2011, 03:23 Hrs
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Bangalore: If you are an IBM employee and want quit your job before the June 16th, think twice. IBM which will celebrate its hundred years on the 16th of June also has a good news for its India employees to make it a more a remarkable event. IBM has announced that will give away $1000 worth shares to its 1,28,000 staff in India.

All IBMers who performed consistently over the 2010 roadmap will receive a grant of $1,000 of IBM stock bonus which will translate into stock units each valued at around $159 on the NYSE. These shares will last till the end of the next roadmap, 2015. The IBM employees have also been offered with what is called the restrictive stock unit (RSU), an agreement under which the employees will be promised returns on the stocks awarded without actually owning them.

This news might sound great but IBM has laid out several criteria under which the employee will be awarded this incentive. Only those who are IBM employees as of December 31, 2010 are eligible for the incentive, which includes the full-timers and the part timers. Also, since these stock incentives will not vest until 2015, anybody quitting the company before June 16 of 2015 will lose the eligibility.

Sam Palmisano , chairman of IBM said that all employees across the globe will receive the perk except for the top executives . The company generated about $16.3 billion of free cash flow, up $1.2 billion in 2010 and the gross profit rose to for the seventh straight year. Earnings per share were $11.52, an increase of 15 percent, and the eighth consecutive year of double-digit EPS growth. The major contribution to the growth comes from India.

While the IT industry is still coming out of the recession shell, IBM's latest trend to retain its employees has set the bar high for the other IT biggies like Infosys and TCS. This move will force all other multinational and Indian tech firms to dole out incentives to retain the best performers.

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