IBM Names James Kavanaugh as New Finance Chief
International Business Machines Corp. announced a management revamp on Thursday, as it named a new finance chief while the current CFO takes a new role at the company.
James Kavanaugh will become senior vice president and finance chief effective Thursday. Mr. Kavanaugh is currently senior vice president, finance and operations, and previously served as IBM's vice president and controller.
He succeeds Martin Schroeter, who -- according to a company spokesman -- will take on a sales-focused role as senior vice president, global markets, effective Thursday. Mr. Schroeter was previously general manager of IBM Global Financing before becoming finance chief in January 2014.
It is typical for IBM to move leaders to new assignments in January, so we ensure we have the best talent in key roles for our business, the spokesman said.
"Martin has been in the CFO role for four years and I think he's looking to get a broader operational experience for possible future roles at IBM, " said Lou Miscioscia, managing director of Pivotal Research Group. "He's moving to a good spot."
The management changes come as IBM continues to struggle with its transition to higher-growth operations such as delivering pay-as-you-go services over the internet from older, shrinking businesses such as building and maintaining technology on customers' premises.
IBM's revenue slipped 0.4% from a year earlier, to $19.15 billion in the third quarter of 2017, marking it as the 22nd consecutive quarter of year-over-year revenue declines.
Both Mr. Schroeter and Mr. Kavanaugh will host IBM's fourth-quarter-earnings call, scheduled for January 18, 2018.
IBM has made no compensation decisions in connection with these appointments, the company said in a securities filing.
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(END) Dow Jones Newswires
January 11, 2018 17:53 ET (22:53 GMT)