IBM 1998 Annual Report Download - page 47

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WOMEN AND M INORITY EXECUTIVES AT IBM
Since 1994, the number of women executives
worldwide has increased 128 percent. And
the number of minority executives in the United
States has increased by 84 percent.
EMPLOYEE GIVING
Individual employees in the United States contributed more
than $190 million from 1994-1998 through matching grants
and donations to nonprofit organizations and educational
institutions.
($in millions)
PERFORM ANCE-BASED PAY
In order to attract and retain the best professionals,
IBM has increased its investments in performance-
based pay programs.
Variable Pay
IBM employees share in the company’s success
through IBM’s variable pay program. Variable
pay is a pool of cash distributed to employees,
based on the performance of the company,
each business unit and each individual
employee. Since 1994, the variable pay pool
has grown by more than 60 percent, to
$1.6 billion in 1998.
Stock Options
The number of employees receiving stock
options has grown substantially from 1994
to 1998. IBM nearly doubled the number of
employees who were granted stock options
in 1996, doubled that number again in 1997,
and then tripled it in 1998. Options give
a significant financial incentive to employees
whose skills and expertise are critical to
IBM’s business.
’94 ’95 ’96 ’97 ’98
$35.6 $35.9 $36.7 $39.2 $43.9
the new blue
workforce
NUMBER OF EMPLOYEES
IBM E-COM MERCE
REVENUES
IBM E-PROCUREM ENT
WEB PURCHASES
FROM A STANDING START in 1997, IBM turned
itself into a multibillion dollar e-business during
1998, taking core business processes – like the
way we sell and the way we buy – to the Net.
IN DECEMBER 1998 ALONE, IBM bought more
than $600 million in goods and services over
the Internet.
By streamlining procurement processes
and taking them to the Web, IBM will save
$240 million this year.
In 1998, more than 14 million customer questions
and problems were resolved via online support
systems, avoiding more than $300 million in
call-center and field-specialist support costs.
IBM as
e-business
$3.3 billion
$0
’94 ’95 ’96 ’97 ’98
$1.8 billion
$0
’94 ’95 ’96 ’97 ’98
1998 291,067
1997 269,465
1996 240,615
1995 225,347
1994 219,839