Shareholder Group Is Pressing IBM for Change
Shareholder activists are turning up the burner under International Business Machines.
Moving quickly to capitalize on recent shareholder success in pressuring General Motors’ directors to take charge of the troubled auto giant, the United Shareholders Assn. announced Wednesday that it is submitting proposals calling for IBM’s independent directors to assert new leadership at the struggling computer company.
A key proposal calls for creation of a committee of independent board members to evaluate IBM’s leadership and strategic direction. Washington-based USA, which has 65,000 members, wants the board to assess alternatives, including the spinoff or divestiture of parts of the company.
As IBM shares have plunged recently to a 10-year low, Wall Street has been debating whether the 12 autonomous units into which IBM reorganized itself last year, dubbed “Baby Blues,” would be worth more individually than as a whole. IBM stock closed at $65 per share Wednesday after trading at a 10-year-low of $64.50 during the day.
Other proposals, which will be voted on next April at Armonk, N.Y.-based IBM’s annual meeting, include splitting the positions of chief executive and chairman, a step GM took recently. Both titles at IBM are held by John Akers.
USA is also asking IBM to form a nominating committee of the board made up exclusively of outside directors, and to more closely tie senior executives’ pay to corporate performance.
A spokesman said IBM had not received official notice of the USA proposals. “We strive to remain responsive and open to shareholder questions and concerns,” he said.
