IBM's Akers expects 1991 base pay to be cut 40% to less than $1.6 million

Article Abstract:

IBM's annual report indicates that Chairman John F. Akers is reducing his base pay for last year by 40 percent to less than $1.6 million, a reflection of IBM's first financial loss for the 1991 year. The pay cut may be even greater, but the IBM board must vote on executive compensation by the end of February. The top four IBM management committee executives will see their pay drop by up to 40 percent while executives with corporate vice president titles and above will see 10 or 20 percent cuts. The annual report indicates that revenue grew by 35 percent in 1991 to $5.6 billion, but IBM's credit rating is not as strong as it used to be. IBM also decided to wait for a while before announcing its new line of notebook computers. The new notebooks will be competitively priced but do not utilize the most exciting modern components. The product uses an Intel 386SX chip that is 80 percent faster than the ordinary chips, and includes a floppy drive that can hold disks containing 2.88Mbytes of data.

Author: Carroll, Paul B.
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
Electronic computers, Office machines, not elsewhere classified, Computer industry, Finance, Ethical aspects, Business planning, Wages and salaries, Cost control, Salary, Financial Analysis Software, Cost Reduction, Annual Report, Product Delay, Product introduction delays, Notebook Computer

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Boutique firm, in bidding for IBM line, bets on new sales strategy, leaner force

Article Abstract:

Clayton and Dubilier, a leveraged buy-out firm, says it plans to be more aggressive in its marketing approach than was IBM when the firm takes control of IBM's office products unit. IBM will sell the subsidiary, which manufactures typewriters, keyboards and printers, for a reported $2.3 billion. While the unit has remained profitable for IBM, it is not a priority business for the company, and its sale makes economic sense. Clayton and Dubilier plans to add 200 to 250 people to the US sales force, and an additional 200 to the European sales team. The firm will also trim 1,200 production employees and broaden the product spectrum.

Author: Anders, George
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
Office equipment, Office equipment and supplies industry, Mergers, acquisitions and divestments, Strategic Planning, Marketing Strategy, Acquisition, Clayton & Dubilier Inc.

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Subjects list: International Business Machines Corp., IBM
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