TECHNOLOGY - Feb. 26, 1996

IBM to Raise Pay, Chiefly Through Incentives: The Armonk, N.Y.-based computer company is increasing cash compensation to its 120,000 U.S. employees for 1996 and adding $240 million to its bonus program. International Business Machine Corp. said it will raise the average bonus for units that meet financial plans from 7% to 10%, and will spend $200 million adjusting base salary and commission pay. The result should be a boost in cash compensation in aggregate of 8% this year, the company said in a memo to employees this month. The move is seen as a sign of IBM’s return to health and another step in its making its cash compensation meet or exceed competitors’. It comes after a year in which most IBM operations exceeded their profit targets. The next performance-based bonuses will be distributed March 15. Despite a $1.8-billion charge for buying Lotus Development Corp., IBM had its best year since 1990, earning $4.1 billion on $71.9 billion in revenue for 1995.