Bankers take Dresdner bank to court over unpaid bonuses
A group of 72 bankers formerly employed by Dresdner ahead of its acquisition by Commerzbank are today going to the High Court claiming up to £30 million in unpaid bonuses. Six of the 72 bankers in question believe they should have received in excess of £1 million each in bonuses with the highest one said to be around £1.5 million for options trader Jonathan Powell.
While the subject of banker's bonuses is a hot topic at this moment in time the bankers argue there was a £351 million pool set aside by Dresdner to pay bonuses in August 2008. However, in December 2008 they received their bonus figures which were just 10% of their "promised bonuses" and have therefore taken the action to the High Court. Whether the takeover by Commerzbank has any great bearing on this issue is open to debate as ultimately the directors of Dresdner believe the provisional bonus indications were "subject to review" and in December all staff were informed that a formal review would take place in January 2009.
The company argues that due to the profitability of the business and the ongoing economic downturn they felt it necessary to reduce the "provisional" bonus awards although a 90% reduction in some cases does seem fairly dramatic.
Share this..
Related stories
CBI Report Points To More Doom And Gloom
A report by the Confederation of British Industry (CBI) does not make good reading for those looking for the slightest sign that the economy is turning. A survey of manufacturers in the UK found that the majority of them expect their output to fall over the next quarter as the economic depression continues to hit home. This is the worst figure for seven years and has the potential to take us all...
Read MoreWill British Gas Price Hike Push Bank To Increase Rates?
While the consensus for this week's Bank of England meeting has for some time been a 'no change in interest rates' stance there is a growing concern that the recent rise in energy prices by British Gas may force the Bank to increase rates to combat inflation. Even though the increase has nothing to do with inflation, and more to do with the price of oil and energy prices in general, there is a fe...
Read MoreBudget Headlines : UK budget deficit £175 billion for 2009
UK budget deficit £175 billion for 2009...
Read MoreThe UK German feud goes on
The UK ambassador to Germany has this evening submitted a formal complaint regarding the public and damning attack on Gordon Brown regarding his role in the EU economic revival plan. Members of the German Ministry were quoted as ridiculing his VAT reduction plan and the substantial increase in UK debt. Even though the German government openly attacked the plan they have since signed up to a simila...
Read MoreSterling under pressure as UK government crumbles
After a fairly buoyant period for the UK currency we have seen falls for the third day in a row as the markets take stock of recent Cabinet resignations and the appalling figures expected from the local and European elections. There was also the concern that Gordon Brown could receive a significant leadership challenge over the coming days and weeks which would further destabilise the UK governmen...
Read More