IBM has completed the final phase of its ‘Act of Succession’, appointing CEO Virginia (‘Ginny’) Rometty as chairman of the board effective 1st October. Rometty now holds the ‘triple-crown’ posts of chairman, president and CEO as is the norm for IBM. Rometty succeeded Sam Palmisano as CEO in January who then stepped up to the chair. Palmisano retires in December.
While I have always believed that the interests of shareholders are best served by having an independent chairman, it’s hard to argue with the market, which has seen IBM’s stock increase some two-and-a-half times since Palmisano took over as CEO in 2002. This compares to a ‘mere’ 80% increase in Nasdaq over the same period. Well, IBM is the exception to many rules, and this, it seems, is just another!