A 90/30 package gives them to 3/31 to take the charge this Q and have last day be last day of 2q. Typically announcements have been made on Thu so could be 3/26. Of course there was also spec of a 30/90 so could be anytime but sounds soon.
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Govt bail out money? Did the democrats finally remove the environmental items and focus only on the economic relief? I still cannot believe they tried pulling a fast one during a time like this.
Had a source that went to a meeting this afternoon and was informed that the NA RA's are on hold until further notice. IBM probably hoping to get some of the US gov bail out money first.
I concur with you it is always on a Thur, the s—er who gets the RA always gets the rest of the day and Friday off to enjoy a long weekend of sorrow . I also concur that it will be a 90/30. Now , I can say I am really at the bottom of the food chain, make very little money after 20 years of service . Not complaining as I enjoy what I do . I know absolutely nothing , this is all speculation and patterns that I have seen. I love to be wrong on this type of thing but if you think you are safe for any reason you are sorely mistaken. You will be swept under the rug at light speed and nobody will blink an eye . I heard an executive on a call answer this way when someone (who probably was let go right after the call asked) What do you say about morale and people fearing losing jobs more than concentrating on customers and doing a great job ? " Thank you, great question, the short of it is , make no mistake about it , my primary objective is the stock price of IBM, we will do what we need to do, that is how this business works " I also concur that without fail is before Q1 ends . It used to be once yearly March madness, now it is every quarter without fail . Hope I am so very wrong, but........
I would agree with you that there is no upside to RA’s, BUT you must compare that to Selloff’s. PIP’s are a measurement of billing vs revenue. Easy to measure easy to implement. If you are on the bench, you are not generating revenue. Do you have a strategic skill? If not easy equation to solve. RA’s vs Selloff is a measure of realigning vs restructuring. IBM pre-virus/pre-ginni leaving was tinkering around the edges. Dipping their toe into realigning.. The announcement by the CFO tells you that. (been there done that for the last 5 years with zero to show for it). That equation changed in early Feb when Ginni said she was leaving, and announced the restructure team (Krishna/Whitehurst) to save IBM. Someone decided to go big (most likely the board) and the 1st q earning charge (approx 1-1.5 billion) centered around realigning will go towards PIP’s. That means a cleaning of the house for non-revenue producers. (Yes this includes exec’s and band 10’s and above spreadsheet jockeys). It’s going to hurt, as there are multiple moving parts. The realigning details has been announced internally (April via a merging of GTS and GBS). The restructure (includes selloff) has been around for at least a year. Bain and McKinsey both participated and came to the same conclusion. IBM must exit some businesses that don’t fit into their strategic vision. THUS the selloff. Let’s hope Krishna can work a strategic deal to save as many jobs as possible, yet buy IBM strategic advantage. It has to happen soon, as the street has lost all interest and all faith in IBM’s executive speech. (IBM is viewed as a financial manipulator). They have told IBM exec’s “ actions speak” Nothing else matters. Krishna is getting one swing, and he knows it. Expect Krishna to act like his job is on the line, because it is.
No RA at all, continued PIP firings though. IBM will get no upside from a RA right now and has a get out of jail free card to have at least 2 terrible quarters now.