Kyndryl’s 5 Most Highly Compensated Executives In 2021

Kyndryl this week released the full annual total compensation of its top five most highly compensated executives for the first time since the global solution provider was spun out of IBM.

First Look At Full Kyndryl Exec Compensation Since Split From IBM

When Kyndryl, the global services business resulting from IBM’s 2020 decision to spin out its managed infrastructure services business, became independent, it instantly became what it calls the world’s largest IT infrastructure services provider. It is now a company with annual revenue of about $19 billion, over 4,000 customers, nearly 89,000 employees in 63 countries, and global strategic alliances with the likes of Amazon Web Services, Google Cloud, Microsoft, VMware, Dell, Nokia, and NetApp.

Kyndryl was officially spun out of IBM last November and became a publicly listed company with the stock ticker symbol “KD.“

After becoming a public company, it disclosed its complete financial picture for the first time in May. At that time, Kyndryl reported revenue for the extended quarter, which ended March 31, fell about 8 percent year-over-year to $4.4 billion and its GAAP net loss of $229 million was significantly less than its $494 million loss the year before.

Another task as a public company Kyndryl needed to complete was the need to file a string of SEC filings covering everything investors need to know. Among the things that needed to be reported on was the compensation of the company’s top named executive officers, or “NEOs,” in investor-speak. And while Kyndryl published preliminary executive compensation in October, the actual official compensation for its full fiscal year 2021 was published this week (June 14) in the company’s SEC Schedule 14A.

Unlike the typical executive compensation reports, with Kyndryl for fiscal 2021, there is no exact comparison with prior years given that the company was spun out of IBM only seven months ago. Kyndryl initially inherited a compensation system defined by IBM management and designed to meet IBM’s global business objectives, according to Jana Schreuder, chair of Kyndryl’s compensation committee.

Schreuder, in the SEC filing, said the company within a few months had to make long-term equity incentive awards to certain individuals to retain its top talent while developing its fiscal 2023 equity incentive program. Note that, because of the timing of the spin-out from IBM, Kyndryl is not reporting a fiscal 2022, but instead went directly from fiscal 2021 to 2023.

Part of the executive compensation for fiscal 2021 is based on compensation from IBM before the spin-out, including a transaction bonus given to stay on through the completion of the spin-out and equity performance provided for accepting employment at Kyndryl after the spinout.

For executive compensation details, click through our slideshow.

5. Maryjo Charbonnier, Chief Human Resources Officer

Charbonnier is a relative newcomer to Kyndryl. She joined the company in June of 2021 after a 6.5-year stint as the chief human resources officer at Wolters Kluwer Nederland, and before that as Broadridge’s chief human resource officer for 6.5 years.

For fiscal 2021, Charbonnier received a salary of $300,511, a bonus of $990,500, stock awards of $2.5 million, option awards of $399,908, non-equity incentive plan compensation of $770,000, and other compensation of $11,019 in 401(k) matching contributions.

For fiscal 2021, Charbonnier received total compensation of $5 million, or $2.1 million after adjusting for her sign-on bonus, her partial-year 2021 bonus, the make-whole RRSU award granted to her by IBM, and her launch awards.

4. Edward Sebold, General Counsel and Secretary

Sebold led several global legal functions at IBM, including working with IBM services, Watson Health, and several acquisitions including IBM’s 2019 acquisition of Red Hat. Prior his time at IBM, Sebold was a partner at the Jones Day law firm.

Sebold for fiscal 2021 received a salary of $619,356, a bonus of $125,000, stock awards of $2.4 million, option awards of $599,855, non-equity incentive plan compensation of $833,333, and other compensation of $66,412, which included 401(k) matching contributions and automatic contributions as well as automatic contributions to the IBM excess plan and Kyndryl excess plan.

Therefore, for fiscal 2021, Sebold received total compensation of $4.6 million, or $2.6 million after adjusting for his partial-year 2021 bonus, his launch awards, and the incremental fair value in connection with the conversion of his IBM equity awards.

3. David Wyshner, Chief Financial Officer

Wyshner is a relative newcomer to Kyndryl, having joined the company in September after spending over 1.5 years as the CFO at XPO Logistics and just over two years as the CFO at Wyndham Hotels & Resorts.

Wyshner in fiscal 2021 received a base salary of $242,273, a bonus of $146,250, stock awards of $11.1 million, option awards of $1.6 million, and non-equity incentive plan compensation of $975,000.

That gave Wyshner total compensation for fiscal 2021 of $14.1 million. After adjusting for a partial-year 2021 bonus, the make-whole RRSU (retention restricted stock unit) award granted to him by IBM, and his launch awards, Wyshner had a total adjusted compensation of $5.3 million.

2. Elly Keinan, Group President

Keinan was a 33-year IBM veteran, during which time he served as general manager of IBM North America, general manager of IBM Latin America, and chairman of IBM Japan. As Kyndryl group president, Keinan overseas global operations as well as Kyndryl’s six global practices, global alliances, and technology platform.

For fiscal 2021, Keinan received a salary of $651,515, a bonus of $2.2 million, stock awards of $12.3 million, option awards of $3 million, non-equity incentive plan compensation of $1.6 million, and other compensation of $48,736, which included 401(k) matching contributions and automatic contributions as well as automatic contributions to the IBM excess plan and Kyndryl excess plan.

That gave Keinan total fiscal 2021 compensation of $19.9 million. After adjusting for his sign-on bonus, his partial-year 2021 bonus, and his launch awards, Keinan had a total adjusted compensation of $8.2 million.

1. Martin Schroeter, Chairman and CEO

Schroeter joined IBM in 1992, and served as general manager of IBM Global Financing until 2014, when he became IBM’s chief financial officer before becoming IBM’s senior vide president of global markets in early 2018. He was named Kyndryl’s inaugural CEO in January of 2021 and chairman in November 2021

Schroeter for fiscal 2021 had a base salary of $962,122, a bonus of $300,000, stock awards worth $18.8 million, option awards of $4.2 million, a non-equity incentive plan compensation of $2.0 million, and other compensation of $66,912, which included 401(k) matching contributions, contributions to both IBM’s and Kyndryl’s excess plan, and use of company-provided aircraft and leased car.

Total compensation for fiscal 2021 was $26.4 million. However, excluding one-time awards including a partial 2021 bonus and launch awards, his adjusted total compensation was $13.1 million.