Co-sponsored by the Program for Financial Studies

Martin Schroeter
Senior Vice President and CFO, IBM

How should a profitable corporation allocate its capital? How much should it hold for reinvestment and how much should be returned shareholders? Let’s find out how a $163B market cap corporation looks at this important topic. Join us for a discussion with Martin Schroeter, Senior Vice President and CFO of IBM. IBM has returned a healthy proportion of its earnings to shareholders over the last decade, through stock buybacks and dividends. At the same time, IBM has tripled net income over the same period by investing heavily in key growth areas such as analytics, cloud computing and security. This strategy has attracted major value investors, including Warren Buffet.

To provide the foundation for this discussion, Professor Laurie Simon Hodrick, A. Barton Hepburn Professor of Economics in the Faculty of Business and Founding Director and Chair of the Advisory Board, Program for Financial Studies at Columbia Business School, will educate us on the fundamentals of capital allocation, and join the dialogue.

Richman Center Public Lecture Series: "Capital Structure in Major Corporations"

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