The Financial Times reports that an additional 21 former Dresdner Kleinwort bankers are suing Commerzbank for around $25m in unpaid bonuses.
The latest lawsuit is in additional to a $50m bonus claim filed against the bank by a group of 72 other former Dresdner Kleinwort bankers earlier this year. All the bankers are alleging that Dresdner Bank reneged on paying out what amounted to retention and guarantee bonuses agreed after the announcement of its takeover by Commerzbank Bank last year. Commerzbank says that: 'Dresdner Bank was entitled to take the actions it took in relation to these.....discretionary bonuses in light of the marked deterioration in the investment bank's (Dresdner Kleinwort) performance in the months of November and December 2008'.
And Bloomberg reports that a lawyer representing senior AIG employees who are tasked with winding down the insurer's complex pool of derivatives contracts has said that many of his clients are likely to leave the firm in March, unless they receive their promised bonus retention awards. US pay czar Kenneth Feinberg has already told AIG that it needs to reduce the $198m in retentions in has committed to pay in 2010.
The news agency also reports that, according to Biff Vlaad, President of Canadian recruiter Vlaad & Co, investment banking bonuses at Canadians firms like RBC Capital Markets and TD Securities are likely to rise by up to 50% this year.
Finally, Reuters reports that the base salaries of Bank of America executives Barbara Desoer (who heads up mortgages), and CFO Joe Price have been reduced from the $800,000 each were promised for 2010 to $500,000, following a pay review by the pay czar.