Bankers launch claim for £30m in unpaid bonuses

Published on Tuesday 8 September 2009 22:10

A CLAIM for £30 million in unpaid bonuses was launched by 72 bankers yesterday.

The current and former employees of Dresdner Kleinwort lodged legal papers at the High Court in London, claiming they were paid just 10 per cent of what they were promised by the bank's new German owner Commerzbank.

The biggest single claim is for 1.46 million, while six top the 1m mark. The bankers are also claiming for daily interest on the mega-payouts.

The bankers say Dresdner set aside 400m (351m) in guaranteed minimum bonuses last year – but Commerzbank paid only a fraction of what was agreed.

The bank cited a "material adverse change" clause to justify the lower payouts after profits were hit by the financial crisis.

Commerzbank – 25 per cent owned by the German state – has been under political pressure to scrap or cut bonuses.

But Stewarts Law partner Clive Zietman, who is representing the bankers, said the claimants had made more than 1 billion (877m) for the bank during the past year.

"There is something called the rule of law, and like or not it is what it is," Zietman added.

If the bankers fail to reach a settlement, the case is likely to go to trial next year.

A Commerzbank spokeswoman said: "The bank will be defending these claims vigorously."

Separately, top bankers defended their culture of bonuses yesterday against an onslaught of regulation that aims to put them on a tighter leash.

Executives from Credit Suisse, Morgan Stanley and Deutsche Bank said the global financial system needed reform, but defended a bonus-driven system that critics say encouraged banks to take big risks.