IBM Chief Arvind Krishna Says Nothing Illegal About Hiring Practices After Musk's Alarm Over Leaked Video: 'I Have Thick Skin'

International Business Machines Corp. (NYSE:IBM) CEO Arvind Krishna, recently embroiled in controversy over a leaked internal video discussing coercive action for discriminatory hiring practices, responded to social media chatter about it.

What Happened: Journalist James O'Keefe, who leaked the video on X, a platform owned by Elon Musk, followed up on Wednesday with another leaked tape of Krishna discussing the issue with company executives.

Krishna acknowledged that the leak had caused a “firestorm” on X, with O'Keefe asserting that IBM engaged in illegal discrimination. The CEO related the leak to the company’s decision to pull ads from X after they were displayed alongside objectionable content. “We weren’t satisfied with any answer of how that was going to be managed or controlled,” he explained.

The IBM CEO expressed his belief in an inclusive culture and the importance of ensuring that all communities feel welcomed.

Krishna clarified that the 5%, plus or minus reference he made in the first video pertained to the executive bonus pool. The 5% bonus would apply to those who make a one percentage point improvement on certain underrepresented minorities, and it was not a target.

“It’s a 5% change; That means 95% of exact bonuses are driven by business performance,” Krishna said. “So if 95% says, go get the best person, the 5% simply says but try to have a diverse slate and try to make sure that you’re being inclusive in all that you pick from.”

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Nothing Illegal About It: The IBM chief stated that the company would always strive to comply with the law while taking the lead in being inclusive. He highlighted IBM’s historical achievements, including placing women in executive positions in the late 1930s, hiring Black managers in the U.S. in the 1940s, and adding LGBTQ individuals in the 1990s.

“We do not believe we did anything illegal…There are people who are going to make inflammatory statements, which were not things that we said because they claim we are going to fire people,” Krishna said.

The 5% will mean little if the company can bring in a little more cash flow, which will make the bonus a lot bigger, he added.

“Many of those attacks, by the way, are going to be about me, the individual,” Krishna said, adding, “Look, I have a thick skin, I’ll go deal with it.” He also noted that the board is quite aware of what is going on.

Krishna recommended employees not respond. “Anything there will just cause more of a response,” he said.

IBM shares rose 0.14% to $163.85 in premarket trading on Thursday, according to Benzinga Pro data.

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Photo courtesy: World Economic Forum/Manuel Lopez on Flickr