'96 was a very good year for I.B.M.'s chief executive
Article Abstract:
IBM's stock did very well in 1996, which also made it a very profitable year for the company CEO, Louis V. Gerstner Jr. The proxy statement released by IBM in Mar 1997 reported the CEO's 1996 total pay to be $20.2 million, an increase of 29.4% over 1995's $15.6 million. IBM stock value has increased by nearly $43 billion between 1993 and 1997 since Gerstner became CEO. In 1996, the company's stock rose in value to $151.50 per share over 1995's price of $91.375 a share. Gerstner has realized an increase in the value of his stock options by $54.2 million since IBM's stock price has increased in value. IBM shareholders have been presented with a new pay plan for executive, in the proxy statement. The plan would provide transferable stock options to executives, which would greatly increase the value of their stock options.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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I.R.S. inquiry: is I.B.M. worker a contractor?
Article Abstract:
The IRS is auditing IBM in order to determine if the company paid thousands of workers as contractors rather than as employees and therefore avoided withholding income and social security taxes. These taxes must be taken from paychecks for employees but not from contractors. IBM officials say that the inquiry is routine and that the company is cooperating with the IRS. The investigation is part of an effort by the IRS to focus on high technology companies, which must past a stringent test in order for their employees to qualify as contractors under the terms of a 1986 law. This test increases the likelihood that IBM will pay higher taxes. A number of former IBM employees say that many employees are quitting the company under a golden handshake agreement by which they return to the company as independent contractors.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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10 years later, I.B.M. sets a new high in a changed market
Article Abstract:
IBM surpassed its Aug 21, 1987 peak of $175.875 per share on May 13, 1997 with a high of $177.125, with the stock closing at $173.625. In 1987, IBM was the largest company in the US with a market value of over $100 billion. IBM is currently the ninth largest American company, and number three among technology companies, coming in behind Intel and Microsoft. IBM reached its lowest point on Aug 16, 1993 when its stock was valued at $40.625 a share. IBM has undergone financial engineering since 1993. At the end of 1994, IBM began buying back its stock, spending $13.2 billion on share repurchases by Mar 31, 1997. During that time it also spent $9.9 billion on research and developement. The day IBM set its peak in 1987, the Dow Jones industrial average did also, but it soon fell in the October market crash.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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