$1.8 million for IBM CEO; same as '08

International Business Machines Corp. will pay Chief Executive Officer Sam Palmisano a salary of $1.8 million in 2009, unchanged from last year.

Palmisano, 57, is also eligible for a bonus of as much as $5 million and $12 million in stock grants based on his performance, IBM said in a regulatory filing. IBM won't increase base salaries or target bonuses for executives this year, according to a memo sent by spokesman Mike Fay.

Palmisano, who has led the company for almost seven years, has hired workers overseas to cut costs, helping IBM report a fourth-quarter profit and 2009 forecast that beat analysts' estimates amid the recession. The Armonk, New York-based company has cut about 4,000 jobs in North America in the past month, according to separation agreements supplied by an employee group.

The company projected 2009 profit of at least $9.20 a share last month, beating the $8.75 average of estimates compiled by Bloomberg. IBM is aiming to boost earnings to at least $10 a share by 2010.