A total of 72 London bankers are suing Dresdner Kleinwort and Commerzbank for $47.8 million (EURO 33 million) worth of unpaid bonuses in the biggest case of its kind in the U.K. According to the Financial Times, the lawsuit is the latest sign that bankers are ready to fight for their pay despite public outrage over the size of the rewards on offer. An additional 25-30 former employees at Dresdner, which was bought by Germany’s Commerzbank late last year, are expected to file a separate suit in the coming weeks. It will claim that the two banks reneged on explicit promises to pay their bonuses in full. Lawyers for the traders, many of whom have stayed on with Commerzbank, were quick to distance themselves from the wider battle over excessive remuneration. Clive Zietman, partner at law firm Stewart’s said: “This case is about English law and an English court will decide on that basis and will not be influenced by politics.” Employees have historically faced an uphill struggle in big-money bonus disputes, with U.K. courts backing the principle that the large payments are generally awarded at the discretion of financial institutions.
London Bankers Sue for $48B in Unpaid Bonuses
The lawsuit is the latest sign that bankers are ready to fight for their pay despite public outrage over the size of the rewards on offer.
September 9, 2009