The Information Technology 100
44
International Business Machines
Since its near meltdown in the mid-1990s, IBM has done a noteworthy job of keeping legacy businesses such as the mainframe going even while it builds new information technology business services, which now account for half the company’s revenues. CEO Sam Palmisano sold IBM's PC division to China's Lenovo late last year, clearing the decks for even more focus on business services. But disappointing first-quarter earnings have set the company back. It's now scrambling to improve sales of short-term IT contracts and to goose hardware sales, even while it eliminates up to 13,000 positions. After nearly hitting $100 early in the year, the company's stock has been trading in the mid 70s since the earnings stumble. Don't expect much upside until Palmisano shows he has the business back on track.
Company Info
| STOCK INFO | IBM |
| Revenues* | $97 BILLION
|
| Revenue Growth | 6.3%
|
| Return on Equity | 27.6%
|
| Total Return | -14.0%
|
| Profits* | $8.3 BILLION
|
| Industry | SERVICES
|
| CORPORATE WEB SITE
|
All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
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Company Snapshot
International Business Machines Corp. (IBM) operates as an information technology company worldwide. It operates in six segments: Global Services, Systems and Technology Group, Personal Systems Group, Software, Global Financing, and Enterprise Investments. Global Services segment provides consulting services for application and systems integration, client relationship management, financial management, human capital, business strategy and change, supply chain management, and the transformation of business processes and operations. Systems and Technology Group segment provides system and component design services, strategic outsourcing of clients' design teams, and technology and manufacturing consulting services. It also provides data storage products, including disk, tape, and storage area networks. This segment also provides semiconductor technology and products, packaging solutions, and engineering technology services to original equipment manufacturer clients. Personal Systems Group segment offers desktop and notebook computers, production print solutions, on demand print-related solutions, enterprise workgroup print technologies, and print management software and services. Software segment provides middleware and operating systems software. Middleware software enables clients to integrate systems, processes, and applications across their enterprises. It also offers collaboration and messaging software to engage in asynchronous communication, and knowledge management. Global Financing segment provides lease and loan financing to end users and internal customers for terms between two and five years. Enterprise Investments segment develops and provides industry-specific information technology solutions supporting the hardware, software, and global services segments of the company. Its product lines include product life cycle management software and document processing technologies. IBM’s clients include various enterprises, such as sole proprietorships, large organizations, governments, and companies. The company was incorporated in 1911 as the Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corp. in 1924. IBM is based in Armonk, New York.
No. of Employees
348,052
Data provided by 
Samuel J. Palmisano
Bio
Sam Palmisano is Chairman of the Board and Chief Executive Officer of the IBM Corp. He was elected Chairman in October 2002, effective January 1, 2003, and has served as Chief Executive Officer since March 2002. Prior to his appointment, Mr. Palmisano was President and Chief Operating Officer. Mr. Palmisano has held a number of key leadership positions during his IBM career, including Senior Vice President and Group Executive for IBM's Enterprise Systems Group, where he led IBM’s adoption of the Linux operating environment, as well as the launch of the company’s unified eServer family. Prior to that, Mr. Palmisano was Senior Vice President and Group Executive for IBM Global Services, with responsibility for the worldwide operations of the largest and most diversified IT services organization in the industry. Mr. Palmisano has served as Senior Vice President and Group Executive for IBM's Personal Systems Group; led IBM’s strategic outsourcing business; and was President of the Integrated Systems Solutions Corp. (ISSC), an IBM wholly owned subsidiary, and now part of IBM Global Services. Before joining ISSC, Mr. Palmisano was IBM senior Managing Director of Operations for IBM Japan. He joined IBM in 1973 in Baltimore, Md.
AGE: 53
Titles
Chairman of the Board, President and Chief Executive Officer
Total Compensation*
$ 8.8 MILLION
Total Value of Options**
$ 37.7 MILLION
Degrees Held
NA
* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year
Key Executives
Samuel J. Palmisano, Nicholas M. Donofrio, Douglas T. Elix, Jesse J. Greene, Jr., J. Bruce Harreld, Paul M. Horn, Jon C. Iwata, John R. Joyce, John E. Kelly, III, Abby F. Kohnstamm, Edward M. Lineen, Mark Loughridge, J. Randall MacDonald, Steven A. Mills, Robert W. Moffat, Jr., Daniel E. O'Donnell, Linda S. Sanford, Stephen M. Ward, Jr., Timothy S. Shaughnessy, William M. Zeitler
Board Members
Samuel J. Palmisano, Cathleen Black, Kenneth I. Chenault, Juergen Dormann, Michael L. Eskew, Carlos Ghosn, Charles F. Knight, Minoru Makihara, Lucio A. Noto, Joan E. Spero, Sidney Taurel, Charles M. Vest, Lorenzo H. Zambrano
