Less than two years after its spin-off from IBM, New York-based solutions provider Kyndryl is for the first time disclosing its top executives’ total compensation from its own coffers.
Officially launching in November 2021 as a public company, Kyndryl focuses on a multitude of global managed services practices including cloud, digital workplace, security, network and edge and AI and offers advisory and implementation services.
But even with a growing need for services, the company is still finding its sweet spot to drive profits.
For the fiscal year that ended on March 31, 2023, Kyndryl reported revenue of $17 billion, a decline of 7 percent compared to the previous year, a pretax loss of $851 million in fiscal year 2023 and net loss of $1.4 billion.
For the fourth quarter in the same fiscal year, the company reported revenue of $4.3 billion, a year-over-year decline of 4 percent, but a 1 percent increase in constant currency. It had a pretax loss of $288 million and a net loss of $737 million. The pretax loss included transaction-related costs, workforce rebalancing charges and lease-exit costs.
“Our progress in fiscal year 2023 demonstrated that we’re executing a powerful strategy to move our business forward,” said Kyndryl chief financial officer David Wyshner during the Q4 investors call. “In fiscal 2024, we’re driving margin expansion through our three-A initiatives as we accelerate our transformation.”
A recently filed proxy statement shows that the five top named executives in the company also took a cut when transitioning to Kyndryl. CEO Martin Schroeter reported total compensation of $26,377,162 in 2021 but had a total compensation of $13,655,346 in 2023. In fact, all five executives’ total compensation was about half of what was reported in 2021, according to the proxy statement. They were paid a fraction of that during a transition period, which extended from January 1, 2022 through March 31, 2022. Prior to November 3, 2021, compensation was paid by IBM. Beginning November 3, 2021, amounts were paid by Kyndryl, the proxy stated.
Here are Kyndryl’s five most highly compensated executives in its fiscal year 2023.
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CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and distributors. Prior to joining CRN, she worked at daily newspapers, including The Press of Atlantic City in New Jersey and The Frederick News-Post in Maryland. She can be reached at [email protected].
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