The PIP came weeks after he returned from burying his daughter
A 61-year-old IBM sales specialist is suing the tech giant, claiming an impossible performance improvement plan was designed to push him out the door.
Frederick Palmer filed suit against International Business Machines Corporation on January 2 in U.S. District Court for the Middle District of North Carolina, alleging the company used a PIP with unattainable goals to terminate him because of his age. The case, which remains in its early stages with no determination on the merits, raises pointed questions about how large employers deploy performance management tools.
Palmer spent decades in technology sales, rejoining IBM in 2022 as a Brand Technical Specialist on the Power Systems team. He worked remotely from Gibsonville, North Carolina, reporting to IBM's Durham office. According to the filing, his numbers told a story of success: in 2023, he hit 97.67% of his fiscal year target, bringing in $7.83 million against a $7.86 million quota. He earned "Successful" ratings in both Business Outcomes and Skills. In 2024, IBM awarded him approximately 145 shares in equity, with personal congratulations from a vice president.
Then came the reorganization. IBM restructured territories in 2024, and Palmer's account base allegedly dropped from around 4,000 clients to just 400. His quota, meanwhile, fell only from approximately $5 million to $4 million. A Power Virtual Server component where he had been performing well was removed from the sales plan entirely. According to the filing, managers told Palmer and his sales representative not to worry—no one would face a PIP because the territory upheaval was IBM's own doing.
In March 2025, Palmer's daughter died suddenly. IBM approved bereavement leave, and Palmer took two of his four available paid weeks before easing back into work, including client travel and a planning meeting. Weeks later, on May 9, IBM placed him on a PIP with a June 30 deadline.
The filing describes requirements that Palmer says no one could meet: hit 45% of his 2025 target incentive, complete learning modules and technical activities, and log new opportunities in IBM's sales system—all while a major product announcement scheduled for July 8 was causing clients to hold off on purchases.
What stands out for HR professionals is the comparator evidence. Palmer's sales representative, a black woman with the identical territory, quota, and performance, was not placed on a PIP. A younger white male in his early 30s with low performance allegedly received an exception based on a strong year two years prior—much like Palmer's own 2023 results. The filing claims younger employees were either spared entirely or given PIPs with attainable goals, while older, higher-paid staff were targeted for removal and replaced with lower-banded hires.
Palmer brings claims under the Age Discrimination in Employment Act and for wrongful termination in violation of North Carolina public policy. He is seeking back pay, front pay, compensatory and liquidated damages, punitive damages, and attorneys' fees. He filed with the Equal Employment Opportunity Commission before bringing suit.
IBM has not yet responded in court, and no ruling has been made on any of the allegations.
