International Business Machines Corporation · NYSE:IBM
International Business Machines — Shareholder Meeting (April 2020)
19 slides from International Business Machines's shareholder meeting presentation, Apr 2, 2020
Slide 1: IBM Investor Update Spring 2020
1 IBM Investor Update Spring 2020
Slide 2: 2019 Business Highlights
2 2019 Business Highlights $77.1B Revenue Second consecutive year of revenue growth, excluding the impact of currency and divestitures Includes Cloud revenue of over $21 billion , 27% of IBM revenue Approximately 60% of IBM’s revenue is recurring Expanded gross margin 90 bps , reflecting a continued
Slide 3: Positioned for a New Era of Technology and Business
3 IBM is uniquely positioned to move enterprise clients to the next chapter of their digital reinventions Positioned for a New Era of Technology and Business Hybrid Cloud $1.2 trillion opportunity Moving mission - critical workloads to the cloud Industry Expertise Trust and Security Innovative Techn
Slide 4: Strong Foundation for the Future
4 Strong Foundation for the Future Significant investment to transform our portfolio and workforce; acquired Red Hat, the leading hybrid cloud platform A leader in hybrid cloud, data and AI, security, blockchain, enterprise services, enterprise systems, quantum IBM has taken actions to create the po
Slide 5: Executive Compensation Alignment
5 • Market competitive • Operating Cash Flow (40%): Important measure of our ability to reinvest and return value to stockholders • Operating Net Income (40%): Measures our profit and operational success • IBM Revenue (20%): Measures total IBM revenue performance across the IBM portfolio of business
Slide 6: Performance-Based Executive Compensation
6 Performance - Based Executive Compensation Annual and long - term incentive program target metrics are set at rigorous levels, with pay - at - risk designed to balance short - and long - term business objectives 90% 90% 99% 102% 81 % 100% 0 50 100 150 2014 2015 2016 2017 2018 2019 52% 32% 67% 99%
Slide 7: Director Nominees
7 MICHELLE HOWARD MARTHA POLLACK VIRGINIA ROMETTY MICHAEL ESKEW MR. THOMAS BUBERL, CEO, AXA S.A. ▪ Mr. Buberl’s experience leading AXA through a digital transformation, accelerating business innovation and leveraging data to meet customers’ rapidly evolving needs in the digital world will be valuabl
Slide 8: Leadership Transition
8 World - class, multi - year succession process resulting in a proven technical and business - savvy leadership team Leadership Transition Arvind Krishna Chief Executive Officer and Director* • Deep experience running key IBM businesses, with a track record of bold transformations and proven busine
Slide 9: Optimal Mix of Skills and Experience for Director Nominees
9 Key insight into IBM’s regulatory environment Optimal Mix of Skills and Experience for Director Nominees Public Company Board 11 Organizational Leadership and Management 14 Global Business Operations 12 Finance/Public Company CFO 7 Tech, Cybersecurity, or Digital 14 Government / Public Policy 14 H
Slide 10: Commitment to Governance Best Practices
10 Commitment to Governance Best Practices The table below highlights practices that IBM embraces in support of strong governance Stockholder Rights and Governance Best Practices Compensation Governance Best Practices x Execution of world - class succession process x Two new independent directors ad
Slide 11: Corporate Responsibility: Social and Environment
11 Social ▪ 220 P - TECH schools across 24 countries with 600 industry partners where students are learning new collar skills ▪ Industry - leading diversity , best - in - class inclusion and record employee engagement ▪ Preparing a workforce for the 21 st century , through apprenticeship programs, r
Slide 12: Confronting COVID-19
12 IBM is marshalling resources and bringing together communities to manage through the COVID - 19 outbreak Confronting COVID - 19 Corporate Responsibility • Spearheading, with the White House Office of Science & Technology and the U.S. Department of Energy, the COVID - 19 High Performance Computing
Slide 13: Voting Item 4: Stockholder Proposal on Right to Remove Directors
13 Voting Item 4: Stockholder Proposal on Right to Remove Directors The Board recommends a vote AGAINST this proposal because stockholders already have the right to remove directors “for cause” through existing corporate governance practices and under New York state law Proposals ▪ IBM has a long hi
Slide 14: Voting Item 5: Stockholder Proposal on Written Consent
14 ▪ The Board does not believe that majority written consent is an appropriate corporate governance model for a widely - held public company like IBM ▪ Majority written consent would allow a bare majority of stockholders to act without a meeting , let alone notice to the other IBM stockholders ▪ By
Slide 15: Voting Item 6: Stockholder Proposal on Independent Chairman
15 ▪ IBM’s Lead Director role is robust and ensures effective independent oversight at all times ▪ The full Board reviews our leadership structure annually to ensure the allocation of responsibilities remains appropriate ▪ The Board’s flexibility to determine the appropriate Board leadership structu
Slide 16: We Request Your Support at the 2020 Annual Meeting
16 FOR Election of all Fourteen Director Nominees Ratification of PricewaterhouseCoopers LLP as IBM’s Independent Registered Public Accounting Firm FOR Advisory Vote on Executive Compensation AGAINST Stockholder Proposal on Shareholder Right to Remove Directors AGAINST Stockholder Proposal on the Ri
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Slide 18: Appendix
18 Appendix
Slide 19: Forward-Looking Statements, Non-GAAP and Other Information
19 Forward - Looking Statements, Non - GAAP and Other Information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Re for m Act of 1995. Forward - looking statements are based on the company’s current assumptions regarding fut
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