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May 4, 1994

IBM REPLACES PERSONAL COMPUTER CHIEF WITH TYRO

By CBR Staff Writer

Robert Corrigan, president of IBM Corp’s Personal Computer Co is taking early retirement, apparently because he was unhappy at moves to reabsorb the semi-autonomous business into the mainstream of the company – and IBM has appointed a computer industry novice to replace him. The new man is Richard Thoman, who was brought in by Louis Gerstner five months ago as corporate senior vice-president in charge of both the Personal Computer Co and the Power Personal Systems Division. The switch makes it appear that the company will now put more emphasis on the forthcoming PowerPC-based machines at the expense of iAPX-86 ones; there is also a suggestion that it will devote more effort to the low margin consumer end of the business at the expense of the higher-margin high-end systems and servers that Corrigan had been pushing. Gerstner and chief financial officer Jerome York have been criticising profit levels at the Personal Computer Co. Thoman was was president of RJR Nabisco ‘s Nabisco International division, and is described as a marketing expert who has worked closely with Gerstner since the two were at American Express Co.

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