International Business Machines Corporation · NYSE:IBM
International Business Machines — IBM — Shareholder Meeting (April 2017)
16 slides from International Business Machines's shareholder meeting presentation, April 2017
Slide 1: IBM Investor Update
IBM Investor Update April 2017
Slide 2: Company overview
Company overview With more than 105 years in business, IBM is the only company in our industry to reinvent itself through multiple technology eras and economic cycles IBM reinvented its core hardware, Key Facts & Figures1 software, and services franchises, while investing to create new ones Ticker
Slide 3: High-value solutions to tackle business challenges
High-value solutions to tackle business challenges IBM’s three-pronged strategy has led to our emergence as the recognized cognitive solutions and cloud platform company, all while transforming our core businesses Cognitive Solutions Cloud Platform Industry Focus Watson – a cognitive technology th
Slide 4: A strong foundation is now in place
A strong foundation is now in place Our strategic imperatives now contribute 41% of IBM’s revenue and we are on track to achieve our goal of growing these businesses to $40 billion by 2018 IBM Strategic Imperatives Revenue FY 2016 Key Financial Metrics 41% of IBM’s 35% of IBM’s Growth in Strategic I
Slide 5: Executive compensation closely aligns with performance
Executive compensation closely aligns with performance Our executive compensation program is designed to align executive compensation with the successful execution of our strategic transformation Pay Element Vehicle Metrics Performance Share Units (3-year vest) 70% - Operating Earnings Per Share 30%
Slide 6: Compensation metrics linked to the drivers of our strategic transformation
Compensation metrics linked to the drivers of our strategic transformation Compensation metrics support our strategy and emergence as the cognitive solutions and cloud platform company Metrics Link to Transformation Driver Operating Cash Flow Important measure of our ability to reinvest and return
Slide 7: Annual and long-term incentive program targets are set at rigorous levels
Annual and long-term incentive program targets are set at rigorous levels Pay at-risk designed to balance short-term and long-term business objectives Performance Share Unit Payouts In 2016, our CEO earned 54% of total target 200% compensation 103% The long-term incentive plan paid out at 100% 8
Slide 8: January 2016 CEO one-time premium-priced option grant
January 2016 CEO one-time premium-priced option grant Premium-Priced Option Structure Rationale On January 26, 2016, the Board granted our CEO At the time of the grant, our company was at a 1.5 million non-qualified stock options critical juncture in our transformation, requiring These options
Slide 9: Long-standing dedication to shareholder engagement
Long-standing dedication to shareholder engagement 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 Engagement is part of our continual review of 100+ of our largest ins
Slide 10: Strong governance and regular refreshment
Strong governance and regular refreshment Our Board is committed to ensuring it has the appropriate leadership, qualifications, and perspectives to oversee IBM for the long term Independent Oversight Added 4 new directors since 2014, Governance Best Practices adding to the Board a balance of skills
Slide 11: Commitment to corporate social responsibility
Commitment to corporate social responsibility Community Citizenship Environment Supply Chain In the last 10 years we have: Since 1990, we have saved and avoided: Performed over 10 million hours of community 1,858 full-scope audits service 7 million of electricity measuring compliance from 2004-201
Slide 12: We request your support at the 2017 Annual Shareholder Meeting
We request your support at the 2017 Annual Shareholder Meeting We design our executive compensation program and make decisions to incentivize our executives to execute on our transformation objectives while maintaining our long-standing commitment to pay for performance In 2016, we were in the m
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Slide 14: Appendix: Non-GAAP Information and Reconciliations
Appendix: Non-GAAP Information and Reconciliations In an effort to provide additional and useful information regarding IBM’s financial results and other financial information as determined by generally accepted accounting principles (GAAP), this contains certain non-GAAP financial measures on a cont
Slide 15: Non-GAAP Information and Reconciliations
Non-GAAP Information and Reconciliations The table below provides a reconciliation of the company’s income statement results as reported under GAAP to its operating earnings presentation, which is a non-GAAP measure. ($ in millions except per share amount) Acquisition- Retirement- For the year ended
Slide 16: Non-GAAP Information and Reconciliations
Non-GAAP Information and Reconciliations The table below provides a reconciliation of the company’s net cash from operating activities as reported under GAAP to its free cash flow, which is a non-GAAP measure. ($ in millions) For the year ended December 31, 2016 Net Cash Provided by Operating Activi