International Business Machines
Headquarters: 1 New Orchard Rd.
Armonk, NY 10504
CEO: Virginia Rometty
Stock Symbol: IBM
IBM is the world's largest information technology company. It is a leader in developing software, storage devices and microchips. It also fields a large business consulting division.
The company has operations in more than 60 countries. It has a major presence in New York with headquarters in Armonk and research facility in Yorktown Heights. IBM is a world leader in research and development and number of corporate patents received annually.
In 2016, IBM reported revenues of $79.9 billion, down 2% from the previous year, and net income of $11.9 billion.
The company reported cloud revenue of $13.7 billion in 2016, up 35% from the previous year.
The company has eliminated thousands of jobs in the U.S. over the past several years but is very secretive about the exact number of cutbacks. The NY Times reports that IBM has more employees working in India than in the U.S.
IBM was incorporated in the state of New York on June 15, 1911 as the Computing-Tabulating-Recording Company (C-T-R). It was formed by Charles Flint, a noted trust organizer, who engineered the merger of Hollerith's Tabulating Machine Company with two others - Computing Scale Company of America and International Time Recording Company.
Based in New York City, the company had 1,300 employees and offices and plants in Endicott and Binghamton, NY; Dayton, OH; Detroit; Washington, D.C.; and Toronto. The combined company manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers, along with tabulators and punched cards.
Thomas Watson, Sr. joined the company as general manager in 1914 and soon became President. He doubled sales to $9 million in just four years.
IBM would continue to grow over the next few decades and build new devices such as calculators and typewriters. This would lead the company to develop mainframe computers for use by companies and the military. In 1981, IBM developed its own personal computer (PC) using a processor from Intel and Disk Operating System (DOS) software from Microsoft. This would kick off a new era of technology by bringing computing to the masses.
While IBM built more PCs, the operating system software was owned by Microsoft, which in turn licensed the software to run the computers to other manufacturers. Many businesses and consumers bought computers, but not necessarily from IBM. Companies such as Hewlett-Packard and Dell would soon dominate the industry for computer sales.
IBM sold its money-losing personal computer division in 2005, which includes Thinkpad laptops, to Chinese corporation Lenovo for $1.75 billion.
IBM acquired consulting firm PricewaterhouseCoopers in 2002 for $3.5 billion.
The company stopped making contributions to its pension plan in 2008. To make up for the end of the pension plan, IBM increased its 401(k) contribution to as much as 10 percent of pay.
In 2010, IBM began providing U.S. employees with 100 percent coverage for primary health care. Employees enrolled in IBM plans receive full coverage throughout the year -- no coinsurance or deductible -- for in-network primary care with their internist, family practitioner, pediatrician, general practitioner or primary osteopath. IBM will be among the first U.S. companies to cover primary care at 100 percent.
In 2014, IBM sold its x86 server business to Lenovo for $2.3 billion. The company also sold its chip business to Global Foundries for $1.5 billion.
In 2015, IBM purchased the Weather Company which includes Weather.com and Weather Underground websites for $2 billion. The purchase did not include the Weather Channel cable network.
Benefits and Pay
IBM workers receive base salary, performance bonus, commissions, awards and other forms of earnings. For most eligible employees, the target performance bonus opportunity is 2-8 percent of eligible annual earnings - with the potential for greater rewards for extraordinary performance.
- Three IBM Medical Plan options and various health maintenance organizations (HMOs) are available.
- Two IBM Dental Plan options and dental maintenance alternatives (DMAs) are available.
- Vision coverage.
- Health care and dependent care spending accounts are offered.
Employees with 1-9 years of service get 15 days off. With 10 or more years of service, 20 days of vacation a year.
IBM also offers 12 holidays a year - usually six observed nationally. The other six vary according to operational requirements with at least one personal-choice holiday.
Telecommuting and work-week balancing schedules are available in many business units with prior management approval.
401k Plus Plan
With IBM 401(k) Plus, employees have at least three ways to save: before-tax, after-tax, or through a Roth 401(k) option or all three. Each option has different advantages for you and different tax consequences. Savings are automatically deducted from your paycheck, and you decide how to invest them.
For eligible employees, IBM offers a dollar-for-dollar match, up to the first 6 percent of pay you contribute to the plan. Employees are eligible for this match after one year, and, once eligible, are fully vested. (Employees are always fully vested in their own contributions.)
Stock Purchase Plan
Each pay period, employees can contribute up to 10 percent of eligible compensation to purchase IBM stock at a discount of 5% off the price on the date of purchase.