IBM's CEO just showed what taking accountability looks like
IBM CEO Arvind Krishna is receiving praise from industry leaders for his transparent handling of a recent quarterly earnings shortfall. By taking personal accountability for the company's failure to adapt, Krishna is seen as building long-term credibility with investors.
Why it matters
This approach highlights a shift in corporate leadership standards, where candor during financial setbacks is increasingly valued over defensive posturing.
IBM CEO Arvind Krishna is widely credited with turning the company around since becoming CEO in 2020. Alex Wong/Getty Images IBM CEO Arvind Krishna owned the shortfall that triggered the stock's worst day on record. Tech leaders say candor can build more credibility than trying to spin disappointing news. A longtime IBM insider says Krishna tells people what they need — not want — to hear. When IBM delivered bad news on Tuesday, CEO Arvind Krishna didn't look for someone else to blame. He owned it. Krishna, who is widely credited with turning IBM around since becoming CEO in 2020, said in a letter to investors that clients had redirected quarterly capital spending toward scarce infrastructure. Management underestimated the scale of that shift, contributing to the company's second-quarter shortfall . "These conditions require our teams to execute perfectly, and this quarter we faltered," Krishna wrote.
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