Former IBM CEO Louis Gerstner, Known for Revitalizing the Company, Dies at 83

• Took over IBM in April 1993 when facing potential bankruptcy, pivoted company to business services through aggressive cost-cutting, asset sales, and stock repurchases
• Stock increased 800% during his leadership before retiring as CEO in 2002; later served as Carlyle Group chairman until 2008
• Beyond IBM, served on boards of Bristol-Myers, New York Times, American Express, AT&T, and Caterpillar, while founding Gerstner Philanthropies focused on education and biomedical research

Louis Gerstner, the transformative former CEO and chairman of IBM, died Saturday at age 83. Gerstner served as IBM's CEO from April 1993 to 2002, becoming the first outsider to lead the company during a critical period when it faced potential bankruptcy.

Under his nine-year leadership, Gerstner orchestrated one of corporate America's most notable turnarounds. He pivoted IBM from hardware manufacturing to business services, drastically cut expenses, sold non-core assets, and implemented aggressive stock repurchases. His strategic transformation resulted in IBM's stock price soaring approximately 800% during his tenure.

Before joining IBM, Gerstner held CEO positions at RJR Nabisco and executive roles at American Express and McKinsey. After retiring from IBM in 2002, he served as chairman of private equity firm Carlyle Group until 2008.

Current IBM Chairman and CEO Arvind Krishna praised Gerstner's forward-looking approach, noting he "reshaped the company" by focusing on future client needs rather than past successes. Gerstner's turnaround strategy became a business school case study, which he detailed in his book "Who Says Elephants Can't Dance."

Beyond IBM, Gerstner served on boards of major corporations including Bristol-Myers, New York Times, American Express, AT&T, and Caterpillar. He was also deeply committed to education reform, launching technology initiatives in schools and establishing Gerstner Philanthropies in 1989 to support biomedical research, environmental causes, education, and social services.

Market implications: While Gerstner's death represents the loss of a legendary business leader, it has no direct impact on IBM's current operations or stock performance, as he retired from active business roles over 15 years ago.