IBM Turns to Chrysler for New CFO

International Business Machines Corp. said Monday that it snapped up Chrysler Corp.’s chief financial officer--a key appointment to help turn the beleaguered computer giant around.

Jerome York comes from a car company that flirted with trouble before it was rejuvenated with new products and fresh finances in the last year.

He will join IBM as its chief financial officer under Louis Gerstner, the former head of RJR Nabisco Inc. who took over the helm of the computer company April 1 after IBM posted its biggest loss ever.

York, 54, was one of Chrysler’s key executives, presiding over the auto maker’s negotiations to extend a $6.8-billion line of credit last summer and two successful stock offerings that raised more than $2 billion.

He joined Chrysler in 1979 and was named executive vice president and chief financial officer on May 31, 1990.

Analysts praised the appointment and said York would help Big Blue regain its credibility on Wall Street.

“There are a lot of synergies between his experience at Chrysler and at IBM,” said Marianne Wolk, a Prudential Securities analyst.

“York had a lot of credibility on Wall Street and he had never broken a promise. . . . IBM has misjudged its markets and disappointed the Street a number of times.”

IBM shares closed up 62.5 cents at $49.25 on the New York Stock Exchange.

IBM said York was also named a senior vice president of the company. His appointments are effective immediately.

Paul Rizzo, IBM’s previous chief financial officer, will remain at the company as an adviser to Gerstner, overseeing manufacturing and development, IBM said. Rizzo remains vice chairman.

Some analysts said one item high on York’s priority list will be to review IBM’s assets and figure out which, if any, are worth selling or spinning off to the public.

In a separate statement issued by Chrysler, York said, “I believe IBM will be one of the most challenging business situations in the ‘90s, and I welcome the opportunity to be part of it.”

He said his decision to leave Chrysler “was one of the toughest I’ve made in my career.”