$680,000 in wrongful damages included performance bonus, stock units — but not bonus during notice period
A recent Ontario Superior Court decision addresses how a court will assess wrongful dismissal damages where there is no enforceable termination provision in an employment agreement and, more importantly, how the elements of compensation an employee may be entitled to during the reasonable notice period might be determined.
In Adelman v. IBM Canada Limited, 2026 ONSC 420, the Ontario Superior Court of Justice awarded a former senior executive more than $680,000 in damages following his termination without cause, with significant emphasis on a bonus earned prior to termination, as well as equity entitlements during the reasonable notice period.
The employee was a 59-year-old senior executive with approximately 18.5 years of service, who was terminated without cause in January of 2023. His employment agreement with IBM did not contain provisions dealing with termination or corresponding entitlements (or disentitlements).
Following termination, IBM did not pay him a discretionary bonus for the 2022 performance year, claiming that it reflected his performance on a project that generated no revenue. It also did not provide him with the value of certain unvested restricted stock units (RSUs) and stock options. The employee commenced an action for wrongful dismissal, seeking 24 months’ reasonable notice, including damages for bonuses, RSUs, and stock options that would have...
Grace Kang has worked as an attorney specializing in intellectual property and business law for 20 years, the last 16 in the greater Los Angeles area. A graduate of Stanford Law School, she said h...