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A Little Something Extra in the Pay Envelope

As if being the head of Big Blue didn't pay well enough, Gerstner, like many 
other CEOs, is rewarded annually with shares of IBM. The value of Gerstner's 
holdings has jumped phenomenally. Consider that a good portion of the initial 
500,000 shares he was given in 1993 has increased more than threefold in value.

                           MARKET     AVERAGE    NET
               CUMULATIVE  PRICE PER  GAIN PER   VALUE OF
               OPTIONS     SHARE ($)  SHARE ($)  OPTIONS ($)
Dec. 31, 1993  500,000     47.880     8.620      4,310,000
Dec. 31, 1994  725,000     73.500     21.567     15,636,000
Dec. 31, 1995  822,092     91.375     37.055     30,462,385
Dec. 31, 1996  770,603     158.500    103.884    80,053,484 (est.)

DATA: COMPANY REPORTS, BUSINESS WEEK ESTIMATE


Updated June 14, 1997 by bwwebmaster
Copyright 1996, by The McGraw-Hill Companies Inc. All rights reserved.
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