Posted on 04/06/2022 5:25:18 PM PDT by anthropocene_x
IBM has been sued by investors who claim the company under former CEO Ginni Rometty propped up its stock price and deceived shareholders by misclassifying revenues from its non-strategic mainframe business – and moving said sales to its strategic business segments in violation of securities regulations.
IBM "improperly and in violation of Generally Accepted Accounting Principles ('GAAP') embarked on a fraudulent scheme to shift billions of dollars in revenues from its mainframe line of business to its Strategic Imperatives and CAMSS line of business," the complaint reads.
According to documents and interviews with former IBM employees, the case stems from years of allegedly unlawful and unethical business practices that served to inflate executive bonuses through revenue shifting, discriminatory layoffs, and the manipulation of sales commission, and other means.
This misbehavior was rewarded by IBM's decision to tie executive compensation to sales of technologies deemed crucial to the US giant's future: Cloud, Analytics, Mobile, Social media, and Security, collectively referred to as CAMSS products. By transferring revenues from its systems division to CAMSS initiatives, IBM's leaders would appear to be succeeding in important growth sectors and take home larger bonuses.
(Excerpt) Read more at theregister.com ...
I think this is highly unlikely.
How so?
...the company had a period between 2013 and 2018 when it experienced an astonishing 22 straight quarters of negative revenue growth.
https://techcrunch.com/2021/04/20/ibm-breaks-latest-revenue-losing-streak-as-cloud-revenue-shows-modest-growth/
“I think this is highly unlikely.”
I don’t. As someone who has over 40+ years in the computer business and competed with IBM in the early years of migration away from mainframes, I have seen them pull some slick moves. They did this all under the “blue suite,” professional image. They were good at it.
It was just a computer glitch.
I miss my 308x series
My SIL works for a company that IBM just bought for their cloud skills.
Carly Fiorina and Elizabeth Holmes did not respond to questions about Ginny Rometty’s questionable business ethics and performance as a tech CEO ...
their Mature Product Line...
the title says mainframes but do they even still make iron?
Neither did Marissa Meyer.
Mayer
Move one of the S’s to the front of CAMSS and you get SCAMS.
I spelled it wrong. See post #13
If I recall, employee bonuses were based on their division’s performance. If this is true then those employees in Mainframe divisions may have lost out.
Check out the specs on this IBM mainframe.
The cpu has 256 cores and there is 40 terabytes of memory <—
I has a i5 cpu and 32gbs of ram memory.....
Tried to Break a Million Dollar Computer
https://www.youtube.com/watch?v=ZDtaanCENbc
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