Two former derivatives traders have sued in London for $11.6m, claiming their previous firm failed to honor an unwritten bonus agreement the bank described as a 'fiction'.
Bloomberg News reports that Andrew Brogden and Robert Reid, ex-head and deputy head of Investec’s structured equity derivatives desk, argued they agreed to join Investec on the understanding that their bonuses would be calculated based on an 'economic value added' formula and it was orally agreed that an institutional market rate would be used, rather than a discretionary component.
It’s 'breathtaking' that they didn’t have a written agreement setting out how the sums would be determined, Judge George Leggatt said as lawyers for the bankers and Investec presented opening arguments in the case Tuesday. 'There is not even a single piece of paper that sets down how it is to be done. When you’re going to be calculating millions of pounds you need to have some record of it'.
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