IBM has announced that the company board has approved $5bn for stock buyback plan along with $1.4bn remaining from its existing programme.
IBM was criticised for its buybacks programme because it spent $13.5bn to repurchase stock in the first nine months of 2014, which was more than double its net income.
According a report from Wall Street Journal, between 2009 and 2013, the company made two buyback announcements per year.
During these period, the buyback amount was at least $12bn per year except in 2009 when company announced $8bn.
Bloomberg reported that the company planned to increase buyback last year by $15bn which was the biggest for the company in the past five years.
IBM saw decline in revenue in the past nine quarters, but it has been able to increase per-share earnings by reducing taxes, closing of less-profitable operations, and building new businesses which includes cloud computing and big-data analytics.
IBM CEO Ginni Rometty said: "We will continue to make the investments and changes necessary to manage our business for the long term and to shift to higher-value offerings.
"At the same time we remain fully committed to returning significant value to shareholders."
