IBM Message Board - Msg: 3005400

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Technology Stocks : IBM

IBM 304.94

-3.2%

Nov 13 3:59 PM EST

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To: art slott who wrote (2015)	12/19/1997 5:59:00 AM
From: Toby	of 8218

One reason IBM probably won't miss it's fourth quarter... IBM distributes its annual pay bonuses in February which last year accounted for more than $1B (I seem to remember $1.5B). This payout, which is based on corporate performance, provides a huge amount of wiggle room for the company to meet its fourth quarter targets. Over Xmas, the execs sit down and figure out how much they've made, and how much they'd like to distribute to the employees. My take is that Wall Street will get it's quarter and the employees will get what's left over, should push come to shove. This might not even be the wrong policy. IBM is seeing its multiple increase steadily as it becomes a steady earner. I even saw as much in the business press several times recently. Mr. Gerstner has won over Wall Street because he hasn't burned them on earnings since he came (although the stock has tanked several times after earnings due to our dour CFO's).

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