IBM's Gerstner, in public debut, vows to cut more and emphasize services

Article Abstract:

New IBM Chmn Louis V. Gerstner Jr, in his first public appearance since assuming office Apr 1, 1993, tells shareholders at the company's annual meeting in Tampa, FL, that he will continue to cut staff while increasing the emphasis on consulting and services. Gerstner also says he does not foresee a wholesale split-up of IBM. He offered few details on any of his plans. Angry investors who have seen the price of IBM stock decline by 50 percent in the past year peppered the new chairman with questions. Gerstner had to defend IBM's board from harsh criticisms that it was too old and too heavily loaded with non-computer executives. Still, all 18 IBM directors gained re-election. Gerstner also had to fend off complaints that his own compensation package, which includes a one-time bonus of $5 million, was too lucrative.

Management, Customer service, Gerstner, Louis V., Jr., Conferences and Meetings, Annual, Stockholder Accounting

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IBM panel searching for next CEO also will review corporate structure

Article Abstract:

The committee of seven IBM directors searching for a replacement for resigning Chief Executive Officer John F. Akers will also decide what corporate structure can best serve the company. The committee, led by retired Johnson and Johnson Chmn James Burke, has already contacted headhunters and hopes of announcing a choice by mid-Apr 1993 at IBM's annual meeting. None of the committee members has much computer industry experience. Burke strongly favors a decentralized structure. The IBM that his committee will examine has a long history of highly centralized management, broken only recently by the decision to restructure the company into a dozen operating units.

Appointments, resignations and dismissals, Chief executive officers, Organization Structure, Recruitment, Board of Directors, Akers, John

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