IBM CEO's pay up 11% to $20.9M in 2007

IBM Corp.'s chairman and chief executive, Samuel J. Palmisano, enjoyed an 11% raise in compensation to $20.9 million in 2007, a year in which the technology company increased its profits and stock price.

In a regulatory filing Monday, IBM (IBM, Fortune 500) said Palmisano, 56, was paid $1.8 million in salary and $5.8 million under a long-term incentive plan. He also got options and stock equivalents worth $12.3 million when they were issued.

Another $988,479 came to Palmisano through various perks, including $406,235 worth of travel on IBM aircraft and $516,622 in contributions to his retirement plan.

The Associated Press calculates total pay by tallying executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The AP total may differ from figures that companies report.

Palmisano's total of $20.9 million was up from $18.8 million the prior year. The increase came as Armonk, N.Y.-based IBM posted a 10% gain in net profit, to $10.4 billion.

IBM's stock price rose 11% in 2007.