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6, 2000 April, 2000

Highlights—March 14, 2015

  • Business Insider:

    IBM paid CEO Ginny Rometty $19.3 million in 2014. By Julie Bort. Excerpts: IBM is going through some rough times these days, but its board seems happy with the fix-it plans laid out by chairman and CEO Ginny Rometty, if her rising compensation is any indication.

    Rometty's total compensation for 2014 was $19.3 million, mostly from about $12.5 million in restricted stock grants, according to documents filed Monday with the SEC. While IBM says she took home $0 in a "bonus," it also says she took home $3.6 million from her "non-equity incentive plan compensation" which is basically a bonus.

    This pay package is up from nearly $14 million she made in 2013. That was the year that IBM stumbled and she and her senior staff voluntarily turned down the money known as the "non-equity incentive plan compensation." Most of her pay came from $11.7 million in stock grants.

    As we previously reported, IBM has already given her a raise for 2015. Her base salary has been boosted by $100,000 to $1.6 million, and she'll get $13.3 million in restricted stock units. And she's eligible for a bigger $5 million bonus in 2015.

  • The Inquirer:

    Ginny offers tonic to troubled IBM investors promising it's on the right path. IBM chief denies being up a minor tributary with no means of manual propulsion. By Chris Merriman. Excerpts: Damage control followed in the letter to investors, highlighting the many good things Big Blue has achieved and promising a $4bn investment in "data, cloud and engagement" during 2015.
    "Today we are building upon this foundation to create an entirely new generation of critical systems," said Rometty.

    "IBM's clients are unclogging city traffic, exploring a cure for cancer, improving the safety of food supplies, reducing risk, and serving their own customers, employees, citizens and patients with greater levels of understanding, personalisation and intimacy.

    "A new world is taking shape before our eyes, remade by data, rewritten in code and growing smarter every day."

    Still, it's easy to be happy when you're paid $19.3m a year. This is the figure that IBM paid Rometty in 2014 through a mixture of cash and stock, according to Business Insider.

    She forwent a bonus, but accepted a $3.6m "non-equity incentive plan compensation". Which is a little like going for a bowl-water bowel release scenario instead of a poo.

  • Seeking Alpha:

    IBM: Why I'm Now Bearish. By Bill Maurer. Excerpt: After a comprehensive review of IBM, I have decided to switch to the bear side. The currency issue is definitely going to impact results on the top and bottom line, and I'm not sure we've seen estimates come down enough. Apple's delay for the large-screen iPad is not a welcome sign, and weakened free cash flow will hurt both IBM's dividend and the buyback. With results expected to weaken this year and the company pulling its original $20 EPS goal, I was amazed that IBM approved an increased compensation package for its CEO. That seems out of touch with reality and could look even worse if the scenario I'm detailing plays out. The stock has also fallen below its 50-day moving average again, which could force another technical breakdown. While I was previously bullish on IBM, I now think investors should switch to the short side.
  • The Register (United Kingdom):

    IBM staffers climb over each other in race for redundancy payout. Form an orderly queue please, Systems Middleware folk. By Paul Kunert. Excerpts: IBMers working in the Systems Middleware (SM) division are falling over themselves to volunteer for redundancy, with the programme heavily oversubscribed.

    Some 110 people want to leave the company with a big fat cheque, which is way more than the ten per cent of the division’s 736-strong workforce that IBM had in mind.

    The voluntary redundancy process is “coming to an end”, one insider told us. “Staff have applied for the package, some will get an offer, others won’t.” ...

    Rather unhelpfully, Big Blue told the group “offers will be made on the voluntary selection criteria determined by the business”. That’s about as clear as CEO Ginny Rometty’s plan to replace tumbling revenues from the classic business with technology that is sold as a service.

    The ECC also asked why job cuts are required when the Message Queue and Integration Bus products in the wider division are profitable, and the risk this poses to future deliveries.

    “Transactional revenues is predicted to decline and a result an appropriate revenue plan has been booked. The business model must be optimised to realign to this new plan,” IBM told ECC.

    “The objective is to realign the business’s costs to business objectives," said Big Blue, adding that it has already taken measures to help it meet targets, outside of redundancies.

    “All business areas have tightly controlled expense management systems in place” to help it meet top and bottom line forecasts, it said.

    “Spending and travel restrictions have been implemented to manage costs. These are property portfolio projects which are ongoing and are aimed at reducing overall occupancy costs across IBM UK,” the response to the ECC states. ...

    Voluntary redundancy programmes were already run in marketing and Global Business Services prior to Christmas, and both were heavily oversubscribed. IBM told the ECC recently that it could seek out redundancies in the same departments again this year.

    We asked IBM for comment but it rolled out the same paragraph it has since the restructure began. We give you:

    “IBM continues to rebalance its workforce to meet the changing requirements of its clients, and to pioneer new, high value segments of the IT industry.”
  • NASDAQ.com:

    IBM Dividend Looks Good – but Does Not Make This Stock a Buy. Excerpts: Right now, the IBM dividend yield is higher than it's ever been at 2.78%. That compares to a 1.6% industry average and 2.2% for the S&P 500, according to Morningstar. ...

    These all seem like good signs. But there's a problem - one that means investors are better off going elsewhere for yield...

    IBM has a long history of making big promises to its shareholders. In 2005, former IBM CEO Sam Palmisano promised IBM would hit $10 earnings-per-share in 2010. And Palmisano, by cutting around the corners and increasing margins, delivered.

    But we also saw the current CEO Virginia "Ginni" Rometty go back on a 2010 Palmisano pledge to achieve a 2015 EPS mark of $20. Continued challenges in sales growth may well force Rometty to further dim the optimistic picture for IBM shareholders.

    Whether that's by scaling back IBM's large buyback program or cutting dividends, there's no guarantee that flagging IBM sales won't tarnish IBM's reputation as a shareholder-friendly stock. ...

    That's why IBM knows it needs to have a bigger presence in the growing market for cloud computing and Big Data services to offset losses in legacy businesses. But IBM is far from an early mover in these areas. It's merely competing at this point, it's not setting the standard in IT architecture like it once did....

    IBM's competition in both growth initiatives includes Amazon.com Inc., which has more room to maneuver because it is hardly as concerned with preserving high margins. And that goes without mentioning the slate of tech start-ups and small software companies that can roll out Big Data and cloud services without the kind of huge, slow-moving bureaucracy that has long hindered IBM on the innovation front. ...

    The Bottom Line: What investors need to understand if they're going after Big Blue solely for the IBM dividend or the buybacks is that these payouts are not stemming from a healthy company. Yes, IBM does have a long history of pleasing shareholders. But the company is in trouble. There are plenty of high-yield dividend stocks to buy that don't find themselves in the same quandary as IBM.

  • New York Post:

    Retired IBM honcho selling UES penthouse for $6.49M. By Jennifer Gould Keil. Excerpts: Paul Horn, the retired senior vice president of IBM and its executive director of research, is listing his penthouse condo at the Belaire, located at 524 E. 72nd St., for $6.49 million.

    The two-bedroom, 2½-bathroom unit boasts views of the Empire State Building and the East River.

  • The Boston Globe Magazine:

    The rise of the be-your-own boss office. Today’s workers demand a big say in where they do their jobs. That can actually be good for employers. By Paula Vasan. Excerpts: In today’s working world, the experience of Sally and his colleagues is at one extreme of the flexibility spectrum. At the other are the countless employees — from shop clerks to teachers to firefighters — who must be at their workplaces on a set schedule. But for a certain type of modern office worker, flexibility about where and when they do their work is more widespread than you might guess. And it’s only getting more common — because it has to. “If workers are not provided with modern benefits of flexibility and autonomy,” says Doug Schade, a recruiter at WinterWyman in Waltham, “top people may go to companies who are offering that.” ...

    That’s part of the substantial business case for flexible working arrangements (lest you thought bosses were offering them out of the kindness of their hearts). A 2013 Stanford study found that employees working from home were 13 percent more productive than their office-bound colleagues, taking fewer breaks and succumbing to fewer distractions. At IBM, remote employees reported they could work 57 hours a week before throwing their work-life balance out of whack, whereas office employees reported that conflicts began to emerge at the 38-hour mark.

  • New York Times:

    According to a recent report by the Center for American Progress, the growth of health care costs in America is slowing — but individual employees aren’t seeing the benefits. Their costs continue to go up, as employers require them to pay a bigger percentage of their health expenses.

    Via Vox:

    Employers actually spent less on premiums between 2011 and 2012. But at the same time, they asked workers to spend more.

    And that’s not the only way companies are asking their workers to pay more. Deductibles have marched steadily upward over the past decade. Even after adjusting for inflation, the CAP analysis finds they have doubled from $1,240 for family coverage in 2002 up to $2,491 in 2013.

  • Glassdoor IBM reviews. Selected reviews follow:
    • “Your salary offer better be high — because that is what you will be making a few years down the line.”

      Former Employee — Business Transformation Consultant in New York, NY. I worked at IBM full-time (more than a year).

      Pros: Literally the only pro I can think of at IBM is that it is a well-known company with a good (although inaccurate) reputation. However, that reputation is starting to sour in order to reflect the company's modern day business dealings. In all other instances, it pales compared to other firms.

      Cons: You will never get a raise. When you ask your manager why you have not received any sort of raise in two years (not even an inflation adjustment), be prepared for them to respond that they have not received any sort of raise in an even longer amount of time.

      Advice to Senior Management: Hold yourselves accountable for the companies dwindling performance. When strategy is not working, be flexible and willing to change. Realize that you are the problem.

    • “No focus on customer, product or employees, only investor money.”

      Former Employee — Applications Analyst in Hortolândia (Brazil). I worked at IBM full-time (more than a year). Pros: Global scale challenges; amazing researchers to work with. Cons: Don't expect to get a raise or be promoted. Bureaucracy is over the top also. Advice to Senior Management: Focus on your customers and great employees and the rest will follow.
    • “CEO Rometty is leading a train wreck”

      Former Employee — Program Manager in San Francisco, CA. I worked at IBM full-time (more than 10 years). Pros: Great colleagues once upon a time. Had global talent committed to the mission of the client, once upon a time. Cons: Bureaucracy of unimaginable proportions; mediocracy run amok and talent is ignored. Advice to Senior Management: Cut the VPs, GMs and directors to 33% of what they are now.
    • “Gone by the wayside”

      Current Employee — Anonymous Employee.

      Pros:

      • People: (colleagues and others I've dealt with on other teams) are okay to work with — no major red flags there
      • Great benefits: health insurance, no hassle taking sick leave, or working from home.

      Cons:

      • A lot of office politics, particularly from those higher up the chain. Layoffs over the years have amplified this and I've long since taken everything they've said with a grain of salt.
      • Lack of training / personal development — non-existent in some parts.

      Advice to Senior Management: Be more open with your employees, warts and all if need be. Hiding important information only creates a culture where people are anxious and uncertain about their future career. When you withhold info, rumors spread in the lower ranks and general distrust of upper management becomes more widespread. It's costing the company some of its best people and it needs to stop.

    • “IBM struggles with its size”

      Current Employee — Technical Manager in Austin, TX. I have been working at IBM full-time (more than 10 years).

      Pros: IBM allows you to have access to fantastic resources and pockets of deep technical excellence. Some of the people I have worked with have been visionary and inspired technical leaders.

      Cons: Finance seems to be running the show. Dubious business decisions are made on the basis of financial data only, without regard for technical or marketing strategy.

      Advice to Senior Management: Quit trying to drive everything to defined financial KPI's. Focus on exposing your technical excellence, and the revenues will follow. Too often things are done in response to IBM organizational bureaucracy, rather than in response to customer needs or market needs.

    • “Overall Company Experience”

      Former Employee — Associate Partner in Chicago, IL.

      Pros: Higher-level philosophical purpose (to be essential), excellent marketing campaigns (Smarter Planet), smart people and great talent, diverse set of capabilities and offerings to solve practically any problem, great brand name.

      Cons: Too self-serving as opposed to client-focused at times, bureaucratic and process focused in managing business, leadership detached from employees and their needs, any person is one quarter away of loosing their jobs based on stock performance.

      Advice to Senior Management: Pay closer attention to developing people and aligning them with the right roles. Allow for more movement of people across brands for a more enriching career growth. Put the client first in structuring contracts and make it easier to do business with IBM.

    • “Technical Recruiter”

      Former Employee — Anonymous Employee. I worked at IBM full-time (more than a year). Pros: Great work culture and great hours. Loved my manager; she didn't micromanage, but provided a lot of support and helped me whenever I got stuck. Cons: Very big company, so it's hard to make a big impact. Also, there's a lot of office politics and departments get into conflicts.
    • “It got worse every year”

      Former Employee — Communications/Marketing.

      Pros: They have a core of incredibly competent people.

      Cons:

      • Continuous flow of lay-offs that have been going on for so long, pretty much the only people left there are good, intelligent, hard-working people.
      • The executive team is completely out of touch with the average worker and, frankly, they don't care.
      • All of the lies and half-truths in corporate messaging, both external and to employees. It is truly amazing what IBM gets away with.

      Advice to Senior Management: Hard working, loyal people were what made IBM great. You've forgotten that.

    • “Unethical behaviour of Management Team”

      Former Employee — Project Executive in Sydney (Australia). I worked at IBM full-time (more than 10 years). Pros: Global company; potentially opportunities to work in a location in the region. Cons: Work/life balance is poor. And, people are promoted to roles they are not suitable for. Advice to Senior Management: Get real,
    • “Losing traction”

      Former Employee — Anonymous Employee. I worked at IBM (more than 10 years.) Pros: They have great methodologies. However, they get wrapped up within them. Cons: Management only looks at billable hours and volunteering time back. Lack of supporting staff to succeed, unless in IBM office. Management is clueless about current technology. Advice to Senior Management: Become current and listen to fresh ideas. Stop defining the company by its past.
    • “A company is running in whims. Higher management is totally unaware about what is going on around.”

      Current Employee — Anonymous Employee.

      Pros: There is nothing to say good.

      Cons:

      • Higher management is totally mess. They are not even updated about the latest company policies.
      • Shortage of projects and employees are assigned to a particular project for the life and no option to switch in different project.
      • No vision, no projection.
    • “Treats employees like garbage”

      Former Employee — Support in Lenexa, KS.

      Pros:

      • Work-life balance to some extent
      • Working from home
      • Different technologies

      Cons:

      • Benefits are okay with the exception of 401k. Company does not match 401k until Dec. 15 of the year, so if you leave or are let go before then, you will not receive company match.
      • Too many people looking out for themselves; make it someone else's problem. Blame other people/groups instead of resolving the situation; customer gets stuck in the middle of the blame game.
      • Revolving door of managers, revolving door of priorities. New person comes in and changes everything; this happens quarterly.

      Advice to Senior Management: People are not resources or an IBM serial number.

    • “Company in transition”

      Former Employee — Senior Financial Analyst in Research Triangle Park, NC. I worked at IBM full-time (more than 10 years). Pros: International company with good employees. People are team players and work very hard to get things done. Cons: Job cuts, constant churn and lack of direction in certain lines of business. Compensation lags market. Benefits are being scaled back. Workload continues to grow and turnaround time more compressed with less employees. Advice to Senior Management: Focus on clients and employees and less on shareholders.
    • “Project Manager”

      Current Employee — Project Manager in Atlanta, GA. I have been working at IBM full-time (more than 10 years). Pros: Ability to telecommute and work from home options readily available. The promotion process is very disorganized and hasn't been communicated by management. Cons: Yearly layoffs of employees, even high-performing employees.
    • “Time to say goodbye — and keep the good memories and the friendships”

      Current Employee — Middle Manager. I have been working at IBM full-time (more than 10 years).

      Pros:

      • work from home
      • global footprint
      • good online training
      • women can advance to positions of power

      Cons:

      • uneven management
      • subpar pay
      • inward-looking and overly complex culture
      • unstable environment — constant downsizing and reorganizing

      Advice to Senior Management: Make the changes that are needed, time is running out.

    • “Great ambitions, poor execution.”

      Former Employee — Product Designer in Austin, TX. I worked at IBM full-time (more than a year).

      Pros: If you're looking to escape to Austin and the middle of Texas for cheap, go for it.

      Cons: Lots of omissions and lies about what the state of company actually is. It hasn't been the era of the Eames for decades and even when those legend designers were hired, they were brought on as famous contractors with a blank check, not the for-cheap designers that are being hired en masse as a work force. You won't have their impact.

      Workplace is dull and tired. Terribly designed office, despite the aim of the organization it supports. Most startups with mediocre incomes can support better perks, benefits, salaries...and cool projects. Some IBM offices are thrilled to offer free coffee for an hour a day! Meanwhile smaller companies offer free lunches, gym memberships, cleaning services, and higher salaries. Don't sell yourself short on a nice interview dinner.

      Austin is great, but Texas is only for some. Don't move here from a big city, unless you're looking to settle down.

      The management is more of a survival class than a meritocracy. Most people expect respect because of how long they've lasted, not because of what they can do — that makes for a corporate culture that is overwhelmed with bureaucratic, safe, risk-averse behavior and very little desire to follow even brilliant design ideas.

      There are challenges in your career that will build character, growth, and fortitude in a designer.... and then there will be challenges like IBM that forever remind you what not to do ever again.

      Advice to Senior Management: Get out.

    • “Bureaucratic, complex and process oriented company with many employees who have spent their lifetime at IBM.”

      Current Employee — Anonymous Employee. I have been working at IBM full-time (more than 8 years).

      Pros: Ability to work from home, wonderful set of employees and manager with expertise to learn from, global operations. Amazing breadth of enterprise software products and services.

      Cons: In major transition so very challenging place to work, low morale. Major reorg just took place. Culture is reactive instead of proactive so lots of fire drills to respond to. Many managers are too focused on tactical activities and addressing action items, unable to focus on longer-term plans and activities. Endless meetings, reviews and approvals. Not a good place to work for young people.

      Advice to Senior Management: Have much clearer lines of responsibility and hold executives accountable! Invest in systems that provide real metrics to measure success and business results. Decisions are subjective and not based on data. Managers should have 360-degree reviews where employees can provide feedback to improve manager skills.

    • “About work culture, career growth, salary...these comments are more relevant for folks planning on joining GBS”

      Former Employee — Managing Consultant in Houston, TX.

      Pros:

      • Great work culture
      • Great colleagues
      • Great projects.

      Cons:

      • Little room for promotions for the 8+ yrs that I was there; management is trying to change it.
      • Company dumped folks when it came time to help transition people; some of the folks had already worked out a move to other groups but that was blocked and people dumped in the recent "RA" exercise
      • Poor bonuses
      • Poor rating process
      • You get stuck at the salary you joined.
      • Leadership works with one or two of its favorite individuals and then no opportunities for the rest.

      Advice to Senior Management: Declining sales for 12 consecutive quarters...look at cutting your sales people OR challenge them to be diverse and work with different individuals on proposal.

    • “Overall, a great place to work”

      Former Employee — Software Engineer in Austin, TX. I worked at IBM full-time (more than 10 years).

      Pros: You are surrounded by the smartest people in the world. This is the first job I had where I didn't feel like I was working with a bunch of idiots. It was fun to work on developing the latest and greatest technology.

      Cons: Everyone is always worried about the next RA. 1st line managers hands are tied. Executive leadership is very short sighted.

      Advice to Senior Management: Lower management needs to fight harder for their employees, and not just respond to executive direction with "Thank you sir. May I have another?" Company needs to spend money on something other than stock buy-backs.

    • “No regard for employee's welfare and career life.”

      Former Employee — Anonymous Employee. Pros: Big company. Competitive salary if you can keep your job. Cons: No job security. Only cares about profits. Advice to Senior Management: Care about the people who work for you.
    • “Going downhill. Nobody cares anymore.”

      Current Employee — Anonymous Employee in Research Triangle Park, NC. I have been working at IBM full-time (more than 10 years). Pros: Good scope for learning technology, great history and smart people. Cons: A lot of smart people have left. Pretty average folks become first line managers. Some directors are also pretty ordinary. Advice to Senior Management: Pay attention to the market forces. Talent is leaving IBM. Take care of long timers and new hires alike.
    • “Redundancies a plenty”

      Current Employee — Consultant in Perth, Western Australia. I have been working at IBM full-time (more than 3 years).

      Pros: Good training courses in the first half of the year. Exceptional co-workers. Big ticket clients and projects. Career opportunities for graduates are great if you don't mind getting underpaid for years.

      Advice to Senior Management: Enough redundancies! The depth of knowledge in the consulting business is being drained.

New on the Alliance@IBM Site

Job Cut Reports

  • Comment 03/09/15:

    I was RA'd on Feb. 27, 2015. I am 64 years old and got a letter stating I was permanently laid off. My manager tried to get me to retire. I told him I was not retiring. He said IBM has designated you as retired since your of retirement age. I asked him to change the designation to Laid OFF. He said he couldn't that. Anybody know the ramifications of such action? Unemployment, etc. -not retired-
  • Comment 03/10/15:

    For those that got RA'd and are retirement eligible...remember you are entitled to a gift (a real joke) and a retirement dinner. A buddy of mine got RA'd and was retirement eligible...his manager knew nothing about either. His manager asked if I (a retired IBMer) would help the manager with the process...kind of scary...the new IBM!! -Anonymous-
  • Comment 03/10/15:

    I have been resourced as of 2/27/2015 as an assistant. While I was still working last month, everyday I received emails from the admin managers that assistants are retiring as of February 27...not just in Somers...all over. Since the date is February 27, this situation is based on the resource action. I haven't seen your website address the assistants situation in the past. We are being cut very deeply and most of them are eligible for retirement...in fact, one assistant said she saw the list that her admin manager had and it had eligible for retirement next to each one. A new hub is being created to take the jobs away from us...in Costa Rica. My job did not go away as another assistant will be extra work...this is age descrimination...can something be done about this? I rarely see anything about assistants in IBM. -Anonymous-
  • Comment 03/10/15:

    -not retired- I left of my own accord in 2014 and took a position with another company. I am far from being retired but IBM says I am and all my paperwork refers to me as a retiree. I guess they are just trying to convince themselves it's not as bad as it really is. -Glad To Be Gone-
  • Comment 03/10/15:

    "you are entitled to a gift(a real joke)and a retirement dinner." True, but there really is nothing to celebrate. It sure can leave a bad taste in your mouth leaving this way by being RAed. The retirement dinner has to have some IBMers as invites I believe and an IBM manager. You might have trouble finding enough of your colleagues to invite since they probably been RA'd as well. It is really not your dinner; it is IBM's in the end. -Dinner4One-
  • Comment 03/10/15:

    RA'd on 27 Feb after 14 years (age 58). Just received Notice to Continue Group Health Coverage for myself and wife. Monthly cost $1,124 + dental $106 = $1230 per month. The package says "required to pay the full TMP/COBRA rate (102% of IBM’s group rates) for medical coverage". I mistakenly thought IBM was covering me for 6 months. :( -Anonymous-
  • Comment 03/10/15:

    "My manager tried to get me to retire. I told him I was not retiring. He said IBM has designated you as retired since your of retirement age."

    That is to discourage you to file for unemployment insurance. This saves IBM some bit of insurance premium for unemployment insurance. If you are retired; you don't count as unemployed. And that makes IBM managements RA agenda not look as bad as it really is.

    Retirement eligible? Sure. Retirement designated? NOOOOOOOOO!!! Your IBM manager is the typical stooge and only doing what IBM HR wants him to do. YES, YOU determine when you want to RETIRE; NOT IBM. Who the h&%$ does IBM think they are??? They have the nerve and flaunt it. If you want to pursue further you'll need a lawyer. If so, good luck! You'll need it going against the Perry Masons IBM has for litigation. It's not impossible to win against IBM but it is possible. -Anonymous-

  • Comment 03/10/15:

    To ‘not retired’, the word “retired” simply means you are no longer working at all and by YOUR choice (or perhaps personal circumstance). Even if you initiated collecting your pension after leaving IBM, it does not necessarily mean you are “retired”. But as long as you meet IBM’s requirements, you would be eligible for IBM’s retirement benefits (health insurance, FHA, etc). In that case, IBM would likely consider you retired when you leave, even if you found work elsewhere post IBM.

    By way of example, prior to working for IBM I was let go by a former employer after 17yrs of service. Before I left IBM via the 2013 TTR program, I was eligible for and began collecting my pension from that former employer. However, that employer did not consider me as retired from them and was not eligible for any other retirement benefits. Yet after leaving IBM, I was eligible for IBM’s retirement benefits since I met all their requirements (rule of 65, etc). So it’s reasonable that IBM considered me retired when I left.

    After leaving IBM, I immediately applied for and was accepted for unemployment, even though I told them I was collecting a pension and that IBM considered me retired. But that did not make me ineligible for unemployment. Collecting a pension and being on unemployment are not mutually exclusive. However, keep in mind that unemployment is reduced by your pension amount.

    So, if you have documentation/evidence from IBM that supports your being let go through no action on your part, you should have no trouble with unemployment, even if you begin collecting your IBM pension, get IBM retirement health insurance fully paid for by your FHA, AND even if you are collecting SS. -2013TTR-

  • Comment 03/10/15:

    Reference retirement gift and retirement dinner. The gifts are worth something around $150. My clock has already broken in less than a year. The retirement dinner is the biggest joke. You need an IBMer there for every non-IBMer there. Plus, you need a manager there. Since I was remote, I got to take my lovely wife out to dinner. I could only bill IBM the travel rate for my city. I paid the last $40 out of my own pocket. Real nice send off for a 38-year career with the worst company in America. I HATE IBM. -ihateibm-
  • Comment 03/11/15:

    To "not retired" — because you are retirement eligible, IBM considers you retired. Please take all of the benefits afforded you—the retirement dinner, the gift, the IBM retiree health plan if needed. In term of unemployment benefits, it really depends on the state that you live in. Some states do not factor in severance payments or pension payments when determining eligibility for unemployment compensation. Others do. If you live in a state that counts your pension benefit as income, you can elect to defer receiving your pension. Your best bet is to either go online or call your State unemployment office and ask. If receiving your pension will not impact your unemployment benefits, it really is to your advantage to start collecting your pension now. There really is no advantage to deferring, even if you intend to continue working. -Retired2-
  • Comment 03/11/15:

    GDP came out. Surprise! The rank and file getting just a wee little less than the big "G". Band 10 / 2+ and a 3% bonus -GDP_YAWN-
  • Comment 03/11/15:

    PBC=2+, GDP=2.3%, TCR=1%, Division=STG, Band=7. My health insurance increase is more than my TCR increase, which means I am taking a pay cut for 2015. -Joke-Of-a-Bonus-
  • Comment 03/11/15:

    Sixty new members, pathetic. I bridged out in 1993 and retired in 1997. I have joined as an associate. Why only 59 new members?? You have NO power as an individual, it is not expensive. Show some courage. I, like many, have had questions regarding unions in the past since some union officials use their power to enrich themselves like IBM corporate elitists. However, the tables have definitely turned in the USA (look at the link to a journalist in a previous post who changed his mind on unions). Corporate elitists (CEOs, etc.) are using their positions to enrich themselves and they do NOT care about anyone else, including shareholders!

    The posts on the job cuts are so tiring. Same old stuff. Blah, blah including coming back to IBM as a contractor after being fired (you are NOT laid off, you are fired period). Why would you work for this company again with the crap they shovel to employees. Look for someone that appreciates your contributions.

    The IBM I worked for was great (bridged out 1993, retired in 1997), that all changed with "Cookie Man" in the early 90s. During the 70s I told coworkers that we were treated very nicely because IBM did NOT want unions. Darn it all, I was right.

    Show some courage for crying out loud and join this Union so you have some power, the corporate elitists hold all of the power in IBM, I joined because I am a retiree and they continue to chip away at retiree benefits. I am sure they would delete my pension if they could do that to save money, IBM corp elitist managers are greedy period, they do NOT give a rats a$$ about you or I. They are terrible greedy supposedly humans, period (may they all go to HE!! if there is an afterlife). Everything about them and nothing for the rest of us. Truly sick greedy supposedly humans. -Tomv1997retiree-

  • Comment 03/11/15:

    "I mistakenly thought IBM was covering me for 6 months. :(" Call ESC to make your election and it should be subsidized. I just received the same notice but I did see on page 1 "the premiums are 102% (including both the employer and employee contributions)". And top of page 2 "You are eligible to receive 12 months and GLI at the active employee rate..." (I'm 32 years). Page 4 indicates a need to call the department of labor if employer is paying some or all of the payments. Page 5 says IBM is sending the invoice so I assume that will be the amount after subsidy. Also indicates payment methods can be made through NetBenefits site. But I am curious how this is going to work and will call Fidelity to find out. I already selected the coverage last week with my retirement coordinator and confirmed I will continue paying what I was paying before being RA'd. -HomerS-
  • Comment 03/11/15:

    Three former colleagues in different areas of IBM got "3" ratings when they approached or reached their 14th year of service, then RA'd, despite having no performance problems prior to this rating. Is there some benefit that IBM is obligated to give on 15 years service, that it's trying to get off? -anon-
  • Comment 03/11/15:

    If you are retirement eligible, you are entitled to a retirement dinner. The budget provision is $750. As others have mentioned, at least 1/2 of the attendees have to be IBMers and there has to be a manager/host. Since I was remote, I had a friend in management "host" (he had to do the expenses accounting) and I had the dinner before I left, so I counted as one of the IBMers. I promise you, we used virtually all of the budget — even sending dessert home with those who were there without spouses. -Anon-
  • Comment 03/12/15:

    PBC=2+, GDP=2.5%, TCR=1.3%, Division=SWG, Band=8. -Anonymous-
  • Comment 03/12/15:

    So you got a GDP? Please use it to pay the full Alliance dues for a few years! The Alliance has done more for us than IBM has for many decades. Why are so many American IBMers such cowards continuing to vote for an unpatriotic party that does not believe in unions and what the USA is supposed to stand for? Put your money where your participation in this blog is! I guess too many of you are just not letting facts get in the way of their prejudices. (Apologies to Mark Twain/Samuel Clemens.)

    We who were laid off end of first quarter 2014 were told we would receive the GDP payout. But one month later with a callback to the manager we were told that the company had reversed its decision and we would not receive the GDP after all. It was only between $1000 and $2000, but at least it was better than any "raises" some of us received during the prior 10 years and it would have been put to good use to pay the full Alliance dues for years to come.

    Despite this some of us continue to pay the full dues since the Alliance inception. PLEASE, PLEASE wake up and drive new membership numbers above the current number! PLEASE, PLEASE show some moral courage and demonstrate at the stockholder meetings. Be at least true to your US heritage!! -A Proud Progressive American-

  • Comment 03/12/15:

    "NASDAQ says IBM is not a 'healthy company'." Well, true. IBM is definitely sick! Does any company that continues to get rid of its intellectual talent healthy? IBM has already been drawn and quartered completely by continued RAs. When is the decapitation going to happen? Then IBM is literally 'the chicken without a head corporation'. No health tonic can cure and help a headless and limbless body that also has no soul left.

    It is like 11 consecutive bad quarters with no real revenue growth and still it is in the Dow Jones index? Roadmap 2015 a total bust. A CEO and Sr. VP team that is still out of touch with IBM business and strategy that gets rewarded monetarily for bad results and bad strategy. Tactically IBM $ucks too; more never-ending talent dropping RAs. IBM is not a true indicator of USA business climate and as a trend setter anymore. Appears NASDAQ has to realize it. The "I" in IBM is still for 'international' where IBM hides its troubles when it should now be standing for INNOVATION. IBM is a follower and not a leader. It is amazing IBM can get credit and loans to float and IBM hides red ink in favor of blue ink (IBM fuzzy non-GAAP financial engineered accounting reporting)

    I wonder if the IBM Stockholder's Meeting will give the usual increase to the dividend since I don't think IBM can afford to give a higher dividend. I can't see how they can even try to justify a stock buyback (but they always try). I can only think that when Berkshire Hathaway is 'happy' with the IBM stock it has acquired it is only because of the stock dividend. AT&T has been or will soon be dropped by S&P I believe. IBM might not be that far behind being dropped from the S&P index as well. -Buffetted-

  • Comment 03/12/15:

    "Is there some benefit that IBM is obligated to give on 15 years service, that its trying to get off?" YES. It's called the Future Health Account (FHA). You need 15 years of service AND be at least 55 years of age to qualify for it. Otherwise, you get NO RETIREMENT IBM HEALTH COVERAGE. -da_facts-
  • Comment 03/12/15:

    I was RA'd after returning from IBM short term disability in early January 2015. I was a PBC 2+ before I went out on leave and was told since I was on disability I was not put in the GDP pool since I was not considered an "active resource". My IBM manager said I could not be rated for the last PBC cycle since I was "absent" for a "significant time of billable resource work". Have others in similar situation gotten the GDP as part of their RA severance or is this IBM's standard practice to make us endure more pain once recovered from a disability leave of absence and then getting RA'd? -Anonymous-
  • Comment 03/12/15:

    While Ginni and her minions rake in the cash they provide a token GDP to the resources. Band 10, 2+ and 2.5% GDP with no raise in the last 5 years, only a one-week furlough in one of those years. GDP a slap in the face to technical leadership team where salary is considered more at since GDP is supposed to be double the percent of lower levels to compensate for the risk. So you know what level of leadership those of us at the higher levels are not doing to support this sinking ship -Frustrated Resource-
  • Comment 03/12/15:

    Received GDP, Band 8, PBC 2, a pathetic 1.1 percent. What an embarrassment. Like many, I don't put any extra effort in anymore as there won't be any reward for going the extra mile. -Anonymous-
  • Comment 03/13/15:

    Your manager does not need to be present at your retirement dinner if you work remotely. What needs to be done is for the manger to contact the location of where you are having your dinner and give them the credit card to charge and tell them the charges cannot exceed $750.00. This way you get the dinner and don't have to pretend to play nice with the person who got you whacked! -Anonymous-
  • Comment 03/13/15:

    GDP - B7 / PBC 2+ - 1.8 percent -Anonymous-
  • Comment 03/13/15:

    @Frustrated Resource — You're a Band 10, so I assume you can do the math. B8's & B9's are reporting a 1.1% GDP. So your 2.5% is more than 2x. If you don't like it then leave. I did a year and a half ago. My bonus pay for the last 4 months of 2013 was 18% of my gross, and my bonus for 2014 was 15% of my gross. That's with a 45% pay increase. Moral of the story is this: Either leave or do something about it (i.e. unionize). -RAed2013-
  • Comment 03/13/15:

    I thought you had to be a PBC 2+ or higher to get GDP? Some PBC 2+ and even 1's get RAed and PBC 2's stay and get a GDP when bands and job roles are equal. It makes no freaking sense! Who is running IBM? Nurse Ginni Ratchett? It is worse than an Insane Asylum! -McMurphy-
If you hire good people and treat them well, they will try to do a good job. They will stimulate one another by their vigor and example. They will set a fast pace for themselves. Then if they are well led and occasionally inspired, if they understand what the company is trying to do and know they will share in its sucess, they will contribute in a major way. The customer will get the superior service he is looking for. The result is profit to customers, employees, and to stcckholders. —Thomas J. Watson, Jr., from A Business and Its Beliefs: The Ideas That Helped Build IBM.

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