21 slides from International Business Machines's shareholder meeting presentation, April 2018
Slide 1: IBM Investor Update
IBM Investor Update April 2018
Slide 2: Business Overview
Business Overview Strategy IBM is at the forefront of enterprise technology market opportunities 2017 Business Highlights High Value & Financial Returns in 2017 Returned IBM to revenue growth in the 4th quarter, capping off a year led by: $79.1B Revenue – Cloud revenues of $17B and an as-a-service e
Slide 3: Strong Foundation for the Cognitive Era
Strong Foundation for the Cognitive Era Strategy IBM has made bold changes to reposition for the future building on our enterprise leadership and integrated model Repositioned for the Future IBM Differentiation Invested in key emerging high value segments; rebuilt innovation pipeline Innovative tech
Slide 4: Investing for Long-Term Value
Investing for Long-Term Value Strategy IBM leverages innovation and expertise to build new platforms and solutions while modernizing our enduring platforms Value Drivers Integrated Model 1. Integrated model and trusted client relationships Innovative Technology 2. First mover in the most promising,
Slide 5: Year-Round Stockholder Engagement
Compensation Year-Round Stockholder Engagement Practices We have a long-standing practice of meeting with a significant number of our largest investors to solicit their feedback on corporate governance and executive compensation matters 100+ # of Stockholders We Reach Out to Every Year on We engage
Slide 6: Enhancements to Compensation Program
Compensation Enhancements to Compensation Program Practices Following our Say on Pay vote last year, members of the Board and management conducted extensive outreach, meeting with investors representing more than 55% of shares that voted on Say on Pay What We Heard Compensation Committee’s Response
Slide 7: Executive Compensation Alignment
Compensation Executive Compensation Alignment Practices 2018 Program Pay Element Vehicle Metrics Enhancements • 70% - Operating Earnings Per Share • 30% - Free Cash Flow Beginning with the 2018 to 2020 Performance Share Units performance period, Relative (3-year vest) • Stock price Long-Term ROIC Mo
Slide 8: Compensation is Linked to Performance Against Core Business Metrics
Compensation Compensation is Linked to Performance Practices Against Core Business Metrics 2017 compensation metrics support our strategy and emergence as the cognitive solutions and cloud platform company Metrics Links to Transformation Drivers Strategic Imperatives Revenue Important measure of our
Slide 9: Executive Compensation Practices
Compensation Executive Compensation Practices Practices IBM embraces numerous compensation best practices in support of its pay-for-performance culture Tie a significant portion of pay to company performance Mitigate risk taking by emphasizing long-term equity incentives, placing caps on potential W
Slide 10: Incentive Plan Targets and Payouts
Compensation Incentive Plan Targets and Payouts Practices Annual and long-term incentive program targets are set at rigorous levels, with pay-at-risk designed to balance short- and long-term business objectives Annual Incentive Plan Performance Share Unit Payouts Payouts to the Chairman & CEO The lo
Slide 11: Effective Board Leadership & Governance Best Practices
Corporate Effective Board Leadership & Governance Governance Best Practices Our Board is committed to ensuring it has the appropriate leadership, qualifications, and perspectives to oversee the company Independent Oversight Governance Best Practices Annual election of all Directors Michael Eskew Ind
Slide 12: Active Board Refreshment and Strong Oversight
Board of Active Board Refreshment and Strong Oversight Directors Commitment to Thoughtful Board Refreshment Highly Qualified Board with Diverse Experience ALEX GORSKY Experience or Expertise Number of Director Nominees Chairman & CEO, Johnson & Johnson • • Global business and technology experience P
Slide 13: Voting Item 4: Stockholder Proposal on Lobbying Disclosure
Voting Item 4: Stockholder Proposal on Stockholder Proposals Lobbying Disclosure The Board urges stockholders to vote AGAINST this proposal given our existing disclosures on lobbying activities and expenditures, including expenditures made through trade associations, as required by law IBM has estab
Slide 14: Voting Item 5: Stockholder Proposal on Special Shareholder Meeting
Voting Item 5: Stockholder Proposal on Stockholder Proposals Special Shareholder Meeting The Board urges stockholders to vote AGAINST this proposal and believes adoption is unnecessary because of the existing and meaningful special meeting right Current 25% threshold is consistent with market practi
Slide 15: Voting Item 6: Stockholder Proposal on Independent Chairman
Voting Item 6: Stockholder Proposal on Stockholder Proposals Independent Chairman The Board recommends a vote AGAINST this proposal because the current board leadership structure with our strong, Independent Presiding Director complementing our Chairman and CEO, has proven effective IBM’s Independen
Slide 16: Rich History of Diversity and Inclusion
Corporate Social Rich History of Diversity and Inclusion Responsibility Since inception, we have been committed to diversity and inclusion efforts across the organization Women Hired as Systems IBM President signs Expanded family Service Professionals, Policy Letter #4 “hire First Female CEO leave f
Slide 17: Corporate Social Responsibility
Corporate Social Corporate Social Responsibility Responsibility IBM has a longstanding commitment to corporate social responsibility in all of its business activities Environment Supply Chain Demonstrably committed to environmental leadership for over Recognized leader with ~50 years of growing the
Slide 18: We request your support at the 2018 Annual Shareholder Meeting
We request your support at the 2018 Annual Shareholder Meeting Our Board is composed of a diverse and experienced group of leaders who are uniquely positioned to effectively oversee IBM’s business and strategy. We have been particularly focused on adding fresh perspectives into the boardroom and are
Slide 19: Slide 19
Slide 20: Appendix A
Appendix A
Slide 21: Forward-looking statements and non-GAAP information
Forward-looking statements and non-GAAP information Certain comments made in this presentation may be characterized In an effort to provide additional and useful information regarding as forward looking under the Private Securities Litigation Reform Act the company’s financial results and other fina