What are the current terms, including exercise prices, for incentive stock options? Do you favor restricted stock or options be offered? Why?
I would set options with exercise prices reflecting targeted internal market value of IBM stock when each contract expires. Executives should be given incentives which are forward looking, and not at current valuations. Executives who make the decisions which businesses to sell or buy should be given targets which measure loss minimization or ROCA for those being purchased and be paid (increases or decreases) in compensation relative to those metrics.
Why is IBM not selling its traditional mainframe business or other non-strategic businesses? I am relieved it is reducing headcount in them. I hope those laid off employees were given opportunities to work and retrain in strategic areas. I am dishearten that IBM is sourcing most of the strategic H/C overseas. Is that necessary to remain competitive? I wish executives would be given pay cuts or not offered stock incentives when revenue continues to decline. Giving bonuses for earnings which increase because of tax considerations, one time events, or stock buybacks is wrong.
Why is Bershire up given its position in IBM, even with its other holdings? Maybe people are taking tax losses in IBM by swapping into BRK to avoid a future wash and still not second guess and up movement in IBM in the interim. I suspect BRK already has a full position in IBM. If you do not do tax loss selling, I would continue to hold IBM.