By Lin Albalos
Publication Date: 2026-02-10 20:09:00
When discretion becomes discrimination
IBM maintained that Adelman’s zero bonus for 2022 reflected his work on a project that generated no revenue. However, Adelman’s 2022 executive compensation statement contained a note stating: “For 2022 he separated before AIP [annual incentive program] payment date (for 2023 cycle) so he is not eligible for AIP payment.” IBM offered no evidence from anyone who actually made the bonus decision.
When Linda Zaccardi, IBM Canada’s Global Compensation Director, was asked whether executives ever received zero bonuses, she answered, “Yes, all the time.” She later acknowledged on cross-examination that “it would not be fair for an employee to be denied a bonus only because of a pending separation.”
The court found the bonus decision neither fair nor reasonable, writing: “Simply because a bonus is awarded in the sole discretion of an employer does not mean that it can be done in an arbitrary or unfair fashion or that…
