Tuesday, August 24, 2004
Palmisano changing IBM style from top to bottom
The Associated Press
IBM executives say Palmisano has stressed ethical governance and teamwork. He got $7.9 million in overall compensation in 2003 but put about $3 million of it in a pool for 14 other top executives to share, to emphasize the group's effort.
Not all is positive
Still, IBM has warts. It hasn't resolved a Securities and Exchange Commission investigation surrounding revenue booked from Dollar General Corp. in 2000 and 2001. This summer the U.S. Treasury Department's inspector general said IBM lobbyists had illegally altered a Treasury document during a debate on pension policy.
IBM could be forced to shell out billions to older workers because of a lawsuit in which a federal judge has ruled that IBM committed age discrimination when it -- like other companies -- changed the rules for its pension plan in the '90s.
Retirees complain Palmisano has ignored their grievances over dramatic cuts in their medical coverage. Many retirees had been told before leaving Big Blue that health insurance would be essentially free for the rest of their lives.
IBM contends health-care costs are too high now; retirees say it's executive compensation that has gotten out of control