In-depth piece (15-16 minute read) on IBM's Q2 debacle and the company's future viability.
https://www.thestreet.com/investing/ibms-25-crash-reveals-ais-hidden-corporate-casualty
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Correct, bonus was paid, and he was higher than usual for most. No pay raises though for most.
They had bonuses this year for most
"IBM’s board faced an uncomfortable decision after learning that the company’s second quarter had fallen well short of expectations."
It is common knowledge that there would be no bonus or increments for IBM employees in 2026. When company does not make money, it is unable to offer any incentives to the employees. So it was already known to the IBM board that they are not making any money. Nothing new that they learned, but it is actually the market that made an uncomfortable decision after learning that the company’s second quarter had fallen well short of expectations.
And how does the market react after learning that operating earnings of $2.93 per share is below the expectation of $3.02 per share. That is a shortfall of about 3% but it resulted in actual decline of 25% of the stock value i.e. almost 8 times. That is astonishing and speaks volumes about how over leveraged this company really is.