Chairman and CEO, IBM Corp. 1997 compensation $1.5 million AGE 56 ADDRESSwww.ibm.com/lvg BIO Gerstner was not an obvious choice to
lead IBM out of its downward spiral and into the 21st century.
After serving at RJR Nabisco and American Express, the
tough-talking executive boasted experience reaching a mass
consumer audience, not selling technology to an elite group of
businesses. Now Gerstner's keen understanding of the business
consumer is being credited with Big Blue's turnaround. Since he
went to IBM five years ago, the stock has shot up $200 a share. A
company that saw almost $10 billion in losses in 1993 saw $10
billion in profits in 1997. 1998 POWER PLAY A CEO said to promise
what he can deliver and no more, Gerstner spoke with confidence
in May about his company's growth. He bullishly claimed that IBM
may soon see double-digit revenue increases because of its
surging computer-services business. Gerstner hopes to turn the
lucrative business of services--once the side dish to a large
hardware or software purchase--into the company's main course. PLACE YOUR BETS Big Blue's shares generate less day-to-day
excitement than do some other technology stocks, but now that
Gerstner has won back their faith, analysts are calling IBM a
strong long-term investment. Buy.
