They just keep coming. . .
https://www.theregister.com/2020/08/20/ibm_commission_lawsuit/
1 reply
The $40 million figure is accurate. It was over about 2 years or so and was a total for their enterprise agreements (largest deals)
Here is how it worked at ibm:
- don’t make your quota and you are fired
- just make your quota and you are paid and they are happy.
- sell way way more than your quota and you are capped and they won’t budge.
Far too few sales people sue them imo.
Ibm wised up in about 2016 by removing commissions entirely from the large agreements and pay a bonus instead. For non large agreements there is a chance to make money these days but not realistic. All the revenue is in the large agreements.
Ultimately they decided at the exec level to save 40M and battle it out in court with the few who sued