International Business Machines Corporation · NYSE:IBM
International Business Machines — Shareholder Meeting (April 2017)
16 slides from International Business Machines's shareholder meeting presentation, Apr 5, 2017
Slide 1: Company overview
Company overview IBM reinvented its core hardware, software, and services franchises, while investing to create new ones such as IBM Cloud, IBM Analytics, IBM Security, Watson Health, Watson Internet of Things and others Continued momentum in our high-value businesses, providing world class innovati
Slide 2: High-value solutions to tackle business challenges
High-value solutions to tackle business challenges Watson – a cognitive technology that can see and analyze massive amounts of data – helps clients tackle challenges ranging from oncology to customer support, using both public data and clients’ private data Watson is trained to be an expert in indus
Slide 3: 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 4 IBM Strategic Imperatives Revenue 41% of IBM’s total revenue FY 2016 Key Financial Metrics +13% Growth in Str
Slide 4: Executive compensation closely aligns with performance
Executive compensation closely aligns with performance 5 Our executive compensation program is designed to align executive compensation with the successful execution of our strategic transformation Pay Element Vehicle Metrics Long-Term Incentive Plan Performance Share Units (3-year vest) Restricted
Slide 5: Compensation metrics linked to the drivers of our strategic transformation
Compensation metrics linked to the drivers of our strategic transformation 6 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 6: Annual and long-term incentive program targets are set at rigorous levels
Annual and long-term incentive program targets are set at rigorous levels In 2016, our CEO earned 54% of total target compensation The long-term incentive plan paid out at 32% for the 2014-2016 period due to lower operating EPS and free cash flow performance in the 3-year period as we continued to t
Slide 7: January 2016 CEO one-time premium-priced option grant
January 2016 CEO one-time premium-priced option grant At the time of the grant, our company was at a critical juncture in our transformation, requiring the personal leadership of our CEO Our Board granted our CEO options to directly align her compensation with stockholder value Board selected premiu
Slide 8: Long-standing dedication to shareholder engagement
Long-standing dedication to shareholder engagement 9 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 Shareholders We Reach Out to Every Year on Corporate Gove
Slide 9: Strong governance and regular refreshment
Strong governance and regular refreshment 10 Our Board is committed to ensuring it has the appropriate leadership, qualifications, and perspectives to oversee IBM for the long term 4 directors # of additions to the board since 2014 23% % of women on board Added 4 new directors since 2014, adding to
Slide 10: Commitment to corporate social responsibility
Commitment to corporate social responsibility 11 Community Citizenship Environment Supply Chain In the last 10 years we have: Performed over 10 million hours of community service Sent teams of over 4,000 of IBM’s top talent on more than 1,000 problem-solving engagements around the world, solving cri
Slide 11: We request your support at the 2017 Annual Shareholder Meeting
FOR election of directors proposed by IBM’s Board of Directors FOR ratification of the appointment of PricewaterhouseCoopers LLP as IBM’s independent registered public accounting firm FOR advisory vote on executive compensation We request your support at the 2017 Annual Shareholder Meeting 12 We des
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
Slide 13: Non-GAAP financial measures rationale
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 continuing operations basis, including operating earnin
Slide 14: Non-GAAP Information and Reconciliations
Non-GAAP Information and Reconciliations 15 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 en
Slide 15: Non-GAAP Information and Reconciliations
Non-GAAP Information and Reconciliations 16 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 Act
Slide 16: Letter on behalf of IBM's Board of Directors
April 5, 2017 LETTER ON BEHALF OF IBM’S BOARD OF DIRECTORS Dear IBM Shareholder: As the Presiding Director of your Company’s Board and the Chair of your Company’s Executive Compensation and Management Resources Committee, we are reaching out to you directly to share our perspective on the transforma
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