Head of I.B.M. has better year than I.B.M

Article Abstract:

IBM Chmn Louis V. Gerstner, Jr, received $4.8 million in salary and bonus in 1995, plus stock options and other incentive pay with a current value of more than $13 million. IBM's board of directors has agreed to lower Gerstner's salary for 1996, but he will have the opportunity to earn much higher bonuses and incentive pay. Most of Gerstner's 1995 pay was a grant of 65,000 restricted shares that cannot be collected until the year 2000; the shares are currently worth $7.6 million. IBM's stock price has more than doubled since Gerstner signed his employment contract with the company in March 1993, closing at $116.875 on the New York Stock Exchange on Mar 14, 1996. Gerstner will earn a salary of $1.5 million in 1996, down from $2 million in 1995, but the minimum target for his bonuses has increased to $2 million from $1.5 million, and the minimum target for a long-term performance incentive has increased to $1.5 million from $500,000 in 1995.

Compensation and benefits, Gerstner, Louis V., Jr.

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I.B.M. finance chief leaves rich cash legacy

Article Abstract:

IBM's CFO Jerome B. York announces his departure from the company, but leaves it with $10 billion cash. York will join Tracinda, the largest shareholder in the Chrysler Corp. York's successor is G. Richard Thoman, who was head of IBM's PC division. IBM's stock fell $1.625 to $101.125 as a result of York's announcement, as other technology stocks rose. Analysts still recommend IBM, and York believes that his mission to give the company a strong balance sheet and liquidity is largely accomplished. York cut yearly expenses by $6.5 billion. Thoman plans to continue York's tactics until the company can reduce costs by $8 million annually. Thoman's work in the PC division has not yielded results to date, although he states that products reach the market more quickly and with wider profit margins than in the past. Thoman's international experience is seen as valuable in a company that earns 62% of its income from abroad.

Appointments, resignations and dismissals, Thoman, G. Richard, York, Jerome B., Company Operations, Company Employee Status Change

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I.B.M., in contract maneuver, to hire many from AT&T

Article Abstract:

IBM and AT&T's Lucent Technologies agree to a deal by which IBM will absorb 3,000 displaced AT&T employees in exchange for a 10-year, multibillion dollar computer-management contract. AT&T's self-imposed division into three separate companies has led to the planned reduction of as many as 40,000 employees, and the IBM agreement is a sign of AT&T's efforts to minimize the impact on its personnel. Numerous analysts suggest that the fact that the Lucent deal was not consummated with AT&T's forthcoming AT&T Solutions division or its NCR division is a slight to both companies. Lucent officials claim that they will continue to explore outsourcing agreements as a method of reducing information technology costs.

Planning, Contracts, Lucent Technologies Inc., Contract agreement, Outsourcing, Company business planning

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