IBM grants Gerstner pay package valued at up to $3.5 million; compensation includes bonus if new executive reaches certain performance goals

Article Abstract:

The IBM board of directors approves a pay package for new Chmn and CEO Louis V. Gerstner that includes a base salary of $2 million and a $1.5 million bonus if he meets certain performance goals in 1993. The board also approves a one-time payment of $5 million, to compensate Gerstner for benefits he gave up in leaving the chairmanship of RJR Nabisco Holdings Corp, and gave him options to purchase a half-million shares of IBM stock. In 1991, RJR Nabisco paid Gerstner $3 million in salary and bonus. Gerstner's compensation is not excessive by the standards of US business, but is high for IBM. For example, former Chmn John Akers earned $2.63 million in salary and bonus in 1990, a good year for IBM. The Gerstner contract is announced the same day that IBM announces plans to lay off more than 2,500 workers in the mid-Hudson Valley region of New York state.

Compensation and benefits, Chief executive officers, Wages and salaries, Gerstner, Louis V., Jr., Layoffs, Layoff, Salary, Bonus

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IBM Vice Chairman Kuehler to retire Aug. 31; top-level duties are shuffled

Article Abstract:

IBM Vice Chmn Jack Kuehler announces plans to retire Aug 31, 1993, shortly after he turns 61. IBM many not name a successor because new Chmn and CEO Louis Gerstner has not decided on the organization of his long-term management team. Earlier in 1993, Kuehler, a 35-year IBM veteran, gave up the company presidency to become vice chairman. In 1992, then-Chmn John Akers asked Kuehler to stay an extra year after reaching the customary IBM retirement age of 60. In a separate development, IBM stock advances $1.50 to $49.875 in New York Stock Exchange composite trading on speculation that Christopher Steffen, who tendered a surprise resignation as chief financial officer of Eastman Kodak Inc, will take over the same job at IBM.

IBM, Appointments, resignations and dismissals, Executives, Retirement, Executive, Kuehler, Jack D.

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