IBM Veteran Is Appointed President, COO

IBM Corp. said it named company veteran Samuel Palmisano president and chief operating officer, laying the groundwork for the possible succession of Chairman and Chief Executive Louis Gerstner. The company, the world’s No. 1 computer maker, also said it named John Thompson vice chairman, effective Sept. 1. Thompson will be responsible for IBM’s expansion into such areas as the Internet and wireless technologies. Palmisano, who has been with IBM since 1973, had been the Armonk, N.Y.-based company’s senior vice president and executive in charge of IBM’s server and enterprise data storage business. His appointment, which puts him at the helm of all of the company’s operating units, also takes effect Sept. 1. IBM shares fell $2.25 to close at $112.50 on the New York Stock Exchange.