Back from the dead: Appeals court resurrects lawsuit claiming IBM stiffs its own salespeople on commissions

IBM has been dealt a setback in its effort to limit the commissions it pays salespeople following the revival of a commission-capping lawsuit that had been dismissed. On Thursday, the US Fourth Circuit Court of Appeals vacated a dismissal granted to IBM in November 2018. The appeals court ruled that the District Court erred …

[Uncle Ron]

Not News

This is not new at IBM. Thirty years ago, I was part of a 3 or 4 person team that sold a huge deal to a university. My share of the commission would have been 10's of thousands. In today's dollars--probably $60 or $70K. I got nothing. The branch manager simply didn't like me. So he cut me out. They didn't give more to the other guys, they just didn't pay me. I didn't fight it because it was a time in my life when I didn't want to lose my job--part of the calculation I'm sure. The quota letters were the same then as now: "Not a promise or a guarantee. Not a contract." "At will employment." I heard many stories of guys earning million dollar commissions that simply weren't paid. They just couldn't stomach paying a salesman a million dollars. An IBM Director once actually told me, "The product sells itself. We don't really need sales people." The IBM Company and it's shareholders have been paying for this attitude for decades now.

[Anonymous Coward]

Re: Not News

Were you a Salesman with a Quota & Sales Plan ?

Branch & Branch Manager ?

Who was the Director ?

IBM used to be the pre-eminent IT Company & renowned as a Sales organisation “par excellence” back in the ‘60s/‘70s/‘80s. (Some may disagree). Today a shadow of it’s former self. Such a shame but that’s life. Watsons must be rolling in their graves.......

[Pascal Monett]

Re: Not News

If IBM doesn't really need salespeople, then why hire them ?

I would just love to see IBM's quarter results after one quarter of no salespeople.

On the other hand, it would just be another in a long string of quarters of less revenue, so yeah, he might just be right after all.

[Anonymous Coward]

How are IT salespeople surprised when they don't get what they expected from a deal?

It's their bread and butter business.

I used to be proud to have worked for IBM. That feeling has been gone for at least a decade by now.

[BebopWeBop]

Re: How are IT salespeople surprised when they don't get what they expected from a deal?

Alas, other companies have gone the same way. I was at HP while Bill and Dave were still alive (but not running the company) - and now look at the wreck of a once ethical, successful company.

[MrDamage]

Re: How are IT salespeople surprised when they don't get what they expected from a deal?

Probably the same way the customer is surprised they don't get what they expected from the deal.

[don't you hate it when you lose your account]

IBM?

I Be Money

[Anonymous Coward]

No surprise here....

Welcome to tech sales. This is the norm. Bring in the elephant sized deal, and get a mouse sized commission under the fine print.

Why do we have software sales anyway? It is so used car sales people can have a career path.