Lou Gerstner facts for kids
Quick facts for kids
Lou Gerstner
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Gerstner c. 1995
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Louis Vincent Gerstner Jr.
March 1, 1942 Mineola, New York, U.S.
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| Died | December 27, 2025 (aged 83) |
| Education | Dartmouth College (BA) Harvard University (MBA) |
| Occupation | Chairman and CEO, RJR Nabisco (1989–1993) Chairman and CEO, IBM (1993–2002) Chairman, The Carlyle Group (2003–2008) |
| Known for | Leading IBM's historic corporate turnaround in the 1990s |
| Board member of | Chairman, The Broad Institute of MIT and Harvard (2013–2021) Chairman, Gerstner Sloan Kettering Graduate School of Biomedical Sciences (2014–present) |
| Spouse(s) | Robin Gerstner |
| Children | 2 |
Louis Vincent Gerstner Jr. (born March 1, 1942, died December 27, 2025) was a very important American businessman. He is most famous for being the leader (chairman and CEO) of the huge technology company IBM. He held this role from 1993 until 2002.
Many people say Mr. Gerstner saved IBM and made it successful again. Before joining IBM, he also led other big companies like RJR Nabisco. He held important jobs at American Express and McKinsey & Company.
Mr. Gerstner studied at Dartmouth College and earned a business degree from Harvard Business School. He also wrote books, including one about how he helped IBM change. He was also the chairman of Gerstner Philanthropies, which supports many good causes.
Lou Gerstner: A Business Leader's Story
Early Career and American Express
Lou Gerstner started working at American Express in 1978. He led the part of the company that handled travel services. Under his guidance, American Express grew a lot by 1985.
He found new ways for people to use the famous American Express Card. He encouraged college students, doctors, and women to use it. He also convinced businesses to use the card to track their spending.
Mr. Gerstner also created special versions of the card, like the Gold Card and Platinum Card. These were for customers who spent more. Because of his success, he became the chairman and CEO of the Travel Related Services division in 1982.
He was promoted to president of the main American Express company in 1985. He was only 43 years old. He once said he was not a "workaholic" because he always took vacations.
Mr. Gerstner led a very successful advertising campaign called "membership has its privileges." This part of American Express became very profitable. It was a leader in the financial services world.
He worked at American Express for 11 years. During this time, the number of card members grew from 8.6 million to 30.7 million. In 1989, he left to become the CEO of RJR Nabisco. This happened after a very large financial deal.
Leading IBM's Big Change
In April 1993, Lou Gerstner was hired as the chairman and CEO of IBM. IBM was a very important computer company, but it was having big problems. The previous CEO had to leave because of pressure from investors.
IBM's leaders first looked for a new boss from inside the computer world. But people like Bill Gates from Microsoft were not interested. So, IBM chose Mr. Gerstner, who was not from the computer industry. He was the first IBM CEO hired from outside the company.
Saving IBM from Splitting Up
When Mr. Gerstner arrived, many people thought IBM should be broken into smaller companies. They believed IBM's main business was becoming old-fashioned. The company's own managers were planning to let different parts of IBM become separate businesses.
But Mr. Gerstner had a different idea. He realized that big companies needed help putting all their different computer technologies together. He saw that IBM's special strength was its ability to offer complete IT solutions to customers.
He decided to keep IBM together as one company. This was a very important decision during his time there. It allowed IBM to offer full solutions, not just separate parts.
The Rise of E-business
In 1993, Mr. Gerstner had a big idea for IBM: to make e-business its main focus. He believed that the internet could be used for much more than just looking at web pages. He thought it could change how businesses worked.
He imagined online shopping, virtual libraries, and electronic payment systems. Soon after, he announced e-business as IBM's main growth plan. IBM's marketing team even created the term "e-business" in 1996.
Under Mr. Gerstner, e-business changed IBM. Within six years, IBM became a top company. It provided the tools and services needed to help other businesses use the internet for their operations.
IBM and the Personal Computer Market
IBM helped make the personal computer (PC) popular. However, many cheaper computers, called PC clones, started to appear. These used the same parts and software as IBM's PCs. This made it hard for IBM to compete.
Mr. Gerstner, as an outsider, saw that some of IBM's older products were not doing well. For example, he realized that IBM's OS/2 software was losing money, even though it was technically good.
By 1994, IBM stopped developing OS/2 software. The company also left the retail desktop PC market because it was no longer profitable. A few years after Mr. Gerstner retired in 2002, IBM sold its PC division to Lenovo.
Making IBM Stronger Again
Mr. Gerstner wrote in his book that changing IBM was very hard. The company's culture had become closed off. After he arrived, over 100,000 employees left the company. IBM had always tried to offer lifetime jobs.
Some employees had become less focused on their work. Mr. Gerstner made tough decisions to make the company healthier. He also brought all of IBM's advertising under one agency, Ogilvy & Mather.
These changes helped save the company. From 1993 to 2002, IBM's value grew from $29 billion to $168 billion. Even with this success, new companies like Google and growing ones like Apple and Dell changed the technology world.
Giving Back: Gerstner Philanthropies
In 1989, Mr. Gerstner started the Gerstner Family Foundation. He was its chairman. This foundation, along with other charitable groups (called "Gerstner Philanthropies"), helps non-profit organizations.
They focus on four main areas: biomedical research, education, the environment, and "Helping Hands." Sometimes, they choose other areas to support.
Supporting Important Causes
As of 2025, the foundation has given over $300 million to various causes. They have invested over $180 million in biomedical research. This supports cancer and genomic research. It also helps young scientists working on new medical treatments.
Their environmental research aims to fight climate change. They work on reducing methane emissions from livestock and finding ways to reduce plastic pollution.
In education, the foundation has given scholarships to over 1,600 students. They also fund programs that help students get into college. These programs also provide emergency money to students in need.
The "Helping Hands" program has assisted over 22,000 families and individuals. It provides one-time financial help for emergencies. This often prevents families from losing their homes. Partner organizations help manage these grants.
In June 2023, Mr. Gerstner wrote an article in the Wall Street Journal. He talked about how the "Helping Hands" program helps prevent homelessness.
Other Important Roles and Awards
Throughout his life, Mr. Gerstner was active in many companies and non-profit groups.
In 2003, he became chairman of The Carlyle Group, a global investment firm. He served until 2008 and remained an advisor until 2016. He also served on the boards of major companies like American Express and The New York Times.
He also held leadership roles in non-profit organizations. These included the Council on Foreign Relations and the Smithsonian Institution. He was also chairman of the Memorial Sloan Kettering Institute for Cancer Research.
Boards and Recognitions
For his work in public education and business, Queen Elizabeth II made him an honorary Knight Commander of the British Empire in 2001.
He was elected to the National Academy of Engineering in 1999. He also received the Legend in Leadership Award from the Yale School of Management in 2008. The University of Rochester's Simon School of Business honored him in 2013.
Mr. Gerstner received many honorary doctorates from universities like Wake Forest, Brown University, and Notre Dame. He also received awards for his work in education. These included medals from Teachers College, Columbia University and the American Museum of Natural History.
