Morgan Stanley must pay trader $8.01m for improper termination

Exit Sign

Here's one termination that clearly wasn't terminal.

Reuters reports that two Morgan Stanley units must pay $8m to a former energy trader, who said the firms improperly terminated him for cause, after he declined to meet with New York law enforcement authorities during an investigation, FINRA arbitrators ruled.

Authorities later closed the investigation, allegedly involving a 'large trade' without bringing charges against Gupta.

Bloomberg News reports that Morgan Stanley didn’t consider 'mitigating circumstances' and follow contractual obligations when it chose to fire Gupta for cause after he refused to meet in 2009 with the Manhattan District Attorney’s office, which was investigating a trade, arbitrators wrote without elaborating on the probe.

'Mr Gupta received no fair, reasoned, fully-informed. individualized consideration of his circumstances', arbitrators wrote in the ruling. 'The decision to terminate him ‘for cause’ was so flawed that it does not constitute valid action by Morgan Stanley'.

Gupta was awarded $4.7m of stock units he was promised from 2006 to 2008 and a deferred-cash award of $1.84m from 2008, plus interest. Gupta, who earned more than $64m in pay during his time at Morgan Stanley, also sought as much as $14.2m in lost earnings from 2010 to 2012, the ruling shows.

Morgan Stanley must pay ex-trader $8 mln in flap over firing-panel

Morgan Stanley Ordered to Pay Fired Commodity Trader $8 Million

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts