Form 4: Andrew N. Liveris Reports Beneficial Ownership Changes in IBM Corp.

Director Andrew N. Liveris reports changes in beneficial ownership of International Business Machines Corp. (IBM) stock due to deferred compensation and equity award plan.

Summary

• Andrew N. Liveris, a director of International Business Machines Corp. (IBM), filed a Form 4 on January 2, 2025, reporting changes in beneficial ownership.
• The changes are related to the IBM Board of Directors Deferred Compensation and Equity Award Plan.
• On December 31, 2024, Liveris acquired 421 shares of IBM common stock through deferral of fees into Promised Fee Shares.
• These shares were priced at $219.83 each.
• Following the transaction, Liveris directly owns 40,768 shares of IBM common stock.
• The Promised Fee Shares are paid out after retirement in the company's common stock or cash, and their distribution is deferred until retirement.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a routine transaction related to executive compensation, indicating continued investment in the company by a director.

Positives

• The acquisition of shares reflects Liveris's continued investment in IBM.
• The deferred compensation plan aligns the director's interests with the long-term performance of the company.

Future Outlook

The Promised Fee Shares are to be distributed upon retirement, either in company's common stock or cash.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies. It provides transparency into the holdings of company directors and their alignment with shareholder interests.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among large corporations like IBM to attract and retain top talent.
• Executive stock ownership is generally viewed positively as it aligns management's interests with those of shareholders.
• Companies like Apple, Microsoft, and Alphabet also have similar executive compensation structures that include stock awards and deferred compensation.

Stakeholder Impact

• The disclosure provides transparency to shareholders regarding the stock ownership of a key company director.
• The deferred compensation plan aligns the director's interests with the long-term performance of the company, potentially benefiting shareholders.

Key Dates