Leong v. SAP America, Inc.

67 F. Supp. 3d 972, 2014 U.S. Dist. LEXIS 129937, 2014 WL 4637178
CourtDistrict Court, N.D. Illinois
DecidedSeptember 17, 2014
DocketNo. 11 C 08876
StatusPublished
Cited by8 cases

This text of 67 F. Supp. 3d 972 (Leong v. SAP America, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leong v. SAP America, Inc., 67 F. Supp. 3d 972, 2014 U.S. Dist. LEXIS 129937, 2014 WL 4637178 (N.D. Ill. 2014).

Opinion

[975]*975 MEMORANDUM OPINION AND ORDER

JOHN J. THARP, Jr., United States District Judge

In this employment-discrimination case, Plaintiff Alice Leong alleges that her former employer, defendant SAP, underpaid her relative to male employees because she is a woman. She therefore claims discrimination based on sex under Title VII of the Civil Rights Act,. 42 U.S.C.A. § 2000e et seq., as well as unequal pay and retaliation under the federal1 and Illinois2 equal-pay statutes, and, finally, breach of contract. SAP moves for summary judgment, and for the reasons that follow, the motion is granted.

FACTS

Headquartered in Germany, SAP AG is “a world leader in enterprise applications in terms of software and software-related service revenue.” Compl. ¶ 8. SAP America (“SAP”), plaintiff Leong’s former employer,3 is the subsidiary that oversees the company’s operations in the United States. For purposes of this opinion, the SAP defendants will be referred to collectively as “SAP” unless more specific identification is otherwise required. The third defendant, to whom Leong’s retaliation claim is directed, is Angelika Dammann, Chief Human Resources Officer and Labor Relations Director of SAP AG, who from July 2010 to November 2010 was Leong’s direct supervisor.

Plaintiff Alice Leong — formerly Alice Conlin — began working for SAP in 1997 as a Segment Manager for SAP’s Consumer Products Industry Center of Expertise, and she continued working for SAP until March 16, 2011. In 2006, Leong applied for, and was hired for, a promotion to a human resources position that would come to be known as Vice President, Global Diversity. The functions qf this position were not new, but the consolidation of those functions and responsibilities in a dedicated position was new within SAP’s human resources department. Before this promotion, Leong had no human resources experience and had never taken any classes related to. human resources or diversity other than internal training.

On September 21, 2006, Leong received an email from David Kaput, Senior Vice President of Global HR Practices and Governance, her direct supervisor in the new position, “to confirm the key position/promotion details we discussed.” Leong Dep. Ex. 8, Dkt. # 91-1 at 65. The email set forth, among other things, the job title, reporting structure, salary, target bonus, benefits, and review process. The annual base salary was $126,500 with a target [976]*976bonus of $63,250.4 The “review” section stated that Leong would receive a normal performance and compensation review at year-end 2006 and “special mid-year 2007 review (in July 2007) of perf/comp with potential mid-year base salary adjustment.” The email also confirmed that Leong would “continue to be an ‘at-will’ employee.”

On November 1, the effective date of the promotion, Leong signed a “Confirmation of Promotion” which is described therein as “an offer” for the Grade Level I position of Global Diversity Vice President. The offer refers to the salary increase to $5,270.83 semi-monthly (ie., $126,500 annually), “subject to business performance and company policy relative to promotional increases.” Leong signed the “acceptance” portion of the document, which stated: “I accept this ■ promotion offer and acknowledge the terms above as well as the fact that this offer does not constitute a contract of employment and my SAP employment remains ‘at-will.’ ”

Before the compensation for Leong’s new position had been finalized, Kaput had recommended a higher base salary for the job. A compensation consultant, Emily Si-molike, did a compensation analysis and determined that “external benchmark data for the position indicated that the base salary in the 50th percentile was $185,000 and the 60th percentile was $208,000.” She ultimately recommended a base salary of $150,000 with total target compensation of $250,000 with bonus. Kaput, in turn, recommended a base salary of $140,000 with a target bonus of $70,000. He forwarded the recommendation to Joerg Staff, then a Human Resources Business Partner working under Claus Heinrich, the Chief Human Resources Officer. Kaput .noted that the proposed salary was “significantly below the market and SAP benchmarks.” Thiele Dec. Ex. A, Dkt. # 91-4 at 7. Staff rejected the recommended compensation. Specifically, Staff wrote that he “could not support” the $140,000 salary for Leong because “from the start the overall promotions increase should not be higher that 10% — better less.” Thiele Dec. Ex. A, Dkt. # 91-4 at 7. Leong’s salary before her promotion was $114, 843. Kaput then reduced the starting salary to $126,500 (a 10 percent increase, if rounded to the nearest $500) and obtained Staffs approval.

Thus, in 2006, the year of her promotion, Leong’s base salary was $126,500, and her target bonus was $63,250. This annual base salary was below what was listed as the grade level I minimum for 2006. Leong received a bonus for calendar year 2006 that was 118.5% of her target. Leong did not receive an increase in her base salary or target bonus for 2007, nor did she receive a salary or performance review at mid-year 2007. Her 2007 bonus was 115% of target, and in 2008, her annual base salary increased to $135,987.50, and her target bonus increased to $67,993.75. The 2008 base salary was still below the grade level I minimum. Leong’s 2008 bonus was 121 % of her target; she did not receive an increase in her base salary or [977]*977target bonus for 2009. Leong’s 2009 bonus was 186% of her target, and for 2010 she received a salary increase to $148,226 and increase in her target bonus to $74,133. This salary increase placed her above the minimum for grade I.

According to Frank Reing, the Vice President of “Total Awards” for SAP America, who is responsible for the compensation program, two factors might contribute to an employee being paid below the salary range for the grade level assigned to his or her position: (1) the individual’s level of “skills and experience”; (2) the “scope and reach” of the job compared to others. Reing Dep. 65-66, Dkt. # 91-2 at 5. According to Reing, there is no guideline or practice at SAP about where an employee is placed with a pay grade range when they are newly hired or promoted: “[i]t depends on the person.” Moreover, according to Reing, the “minimum” salary is “not a floor.”

During Leong’s tenure as vice president for global diversity, SAP bestowed salary increases on various other HR directors and managers that constituted raises in excess of 10%. Frank Reing received increases of 10.6%, 14.3%, and 14.9% (in addition to other raises) between 2006 and 2011. Mark Steinke, who held various HR recruiting positions, received salary increases of 13.8% (less than a year after a 7.4% increase), 12.2%, 13.5% and 13.4% between 2005 and 2008. Claudio Vespucci, a human resources director, received salary increases of 10.9% and 20.1 % between 2007 and 2011.

In February 2010, Leong became the “Global Vice President, Global Diversity.”5 She received an email from Stefan Reis that states, as to “a change in your position title and salary,” that “your new base salary is 148,226 USD (a raise of about 17.1 percent) and your target bonus percentage is 50%....

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
67 F. Supp. 3d 972, 2014 U.S. Dist. LEXIS 129937, 2014 WL 4637178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leong-v-sap-america-inc-ilnd-2014.