IBM Taps Former CFO, Global Markets Executive To Lead ‘NewCo’ Spinoff

IBM has named Martin Schroeter to be CEO of “NewCo,” the new company that will be created later this year when IBM spins off its managed infrastructure services business.

Schroeter was most recently senior vice president, global markets—a job he held starting in December 2017. There he was responsible for IBM’s global sales, client relationships and satisfaction, and worldwide geographic operations. He was also responsible for IBM marketing and communications functions and was responsible for building the company’s global brand and reputation.

“NewCo is a trusted partner to the world’s most global enterprises with a team that has the best skills and experience in the industry,” Schroeter said in a statement. “I look forward to developing a diverse ecosystem of partnerships and alliances, to continuing a deep relationship with IBM, and to the creation of market leading capabilities.”

[Related: 5 Big Things To Know About IBM’s Spin-Off: A ‘Landmark Day’]

In October IBM surprised the industry when it unveiled a plan to split into two companies, spinning off its Global Technology Services (GTS) managed infrastructure services unit into a new publicly held company. IBM expects to complete the split by the end of 2021—a move that will likely reorder the top ranks of the CRN Solution Provider 500.

The result will be two companies focused on separate market opportunities: IBM on developing cutting-edge technologies for hybrid cloud computing and digital transformation; and the new company on managing client-owned IT infrastructure.

Before assuming his most recent post, Schroeter held a number of executive positions at IBM, including serving as IBM’s CFO between 2014 and 2017 and earlier as general manager of global financing where he managed an asset base of more than $37 billion.

Schroeter joined IBM in 1992 and held a number of positions in the U.S., Japan and Australia. He received his undergraduate degree in economics and finance from Temple University and an MBA degree from Carnegie Mellon University. He holds U.S. and Australian dual citizenship.

“Martin is a world-class leader and is uniquely qualified to drive the long-term success of the new, independent company,” said Arvind Krishna, IBM chairman and CEO, in a statement. “He has a deep understanding of the industry and has earned the trust of our clients and of the investor community.

“Martin has the strategic vision and business judgement to realize NewCo’s enormous potential as the global leader in managed infrastructure services. He is an inspiring, results-driven executive and the right CEO to lead NewCo through the spin-off process and beyond.”

The new, as-yet-to-be-named company will have annual revenue of $19 billion, a $60 billion services backlog, and 4,600 clients in 115 countries, according to IBM.

The 109-year-old IBM will retain $8 billion of the GTS cloud services consulting business as well as the $17 billion Global Business Services unit, the IBM systems business, and software products around big data, AI and security.

IBM also has Red Hat, acquired for $34 billion in 2019, which now becomes even more critical to the company’s strategy of focusing on hybrid cloud computing.