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"IBM
lifts payout, sets buyback" http://www.varbusiness.com/sections/news/dailyarchives.asp?ArticleID=35029 http://biz.yahoo.com/rb/020430/tech_ibm_7.html CNN
Dobbs Moneyline Transcript: STEVE YOUNG, CNN CORRESPONDENT (voice over): IBM's annual shareholder meeting in Louisville, Kentucky Tuesday was a magnet for the Communications Workers of America. They were trying to pull the plug on big blue's practice of counting pension fund income, along with IBM's operating profits in calculating compensation for top executives. LINDA GUYER, COMMUNICATIONS WORKERS OF AMERICA: Last year, the CEO of IBM took home over $200 million worth of stock options, in spite of the fact that the business was slowing down, in spite of the fact that there were thousands of layoffs. So what we want is not greed. What we want is something that's fair to everybody all around. YOUNG: In urging a no vote on the resolution, IBM said the company's executive compensation programs and policies are properly designed to motivate the company's executives and to align their interests with the interests of shareholders. The controversy about using pension fund income to make executive performance look better is rippling across a variety of other big companies. They include Verizon, AT&T, GE, Kmart and Qwest. KAREN FRIEDMAN, PENSION RIGHTS CENTER: By using this vapor profit to increase corporation profits, it gives companies a disincentive to give workers benefit increases and retirees needed cost of living adjustments from the pension fund. YOUNG: A June, 2001 Credit Suisse First Boston study found 30 percent of Fortune 500 companies reported pension fund income, adding an average 12 percent to pretax profits. (END VIDEOTAPE) YOUNG (on camera): The IBM resolution won today only 17 percent of the vote, but a similar measure at Verizon earlier this month won 43 percent, up from 19 percent a year ago. Clearly resentment is rising. Lou. DOBBS: And adding to the focus on pension fund accounting as an issue in corporation earnings results. YOUNG: This is really ironic. It's an '87 (UNINTELLIGIBLE) rule that was supposed to have your account prove losses, and now it's turned into this. DOBBS: A way in which to enhance executive compensation, imagine that. Steve, thank you very much. Coming up, we'll tell you about the fall of WorldCom Chief Bernie Ebbers beaten down by a plummeting stock price, a mountain of debt, and yes a very large personal loan from the company. Investors today jump in to the market. We'll be talking with strategist Joseph Battipaglia about whether there will be better times ahead in the month of May. And the amazing pictures from the Hubble Space Telescope, the first images released since that new enhanced camera was put aboard the orbiting conservatory. We'll tell you how the extremities of deep space are within, if not our grasp, at least our vision. (COMMERCIAL BREAK)
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