Business | Banking
More executives sue Commerzbank over 16.7m euros of unpaid bonuses
investment bankers allege breach of promise after Dresdner acquisition
- Financial Times
- Published: 00:00 November 29, 2009
Frankfurt : A further 21 investment bankers are suing German bank Commerzbank for more than 16.7 million euros (Dh91.9 million) of unpaid bonuses.
The claim, which was filed on Friday in the High Court, comes just months after more than 80 investment bankers lodged a similar claim against Commerzbank relating to 33 million euros worth of unpaid bonuses in the biggest case of its kind in Britain.
The German bank is defending the claims.
In the latest lawsuit, the bankers allege that Commerzbank and Dresdner Kleinwort, which the German bank acquired last year, reneged on promises to pay their bonuses.
In the court documents, the bankers allege that last year Dresdner Kleinwort Investment Banking created a 400 million guaranteed minimum bonus pool to encourage staff to stay with Dresdner.
Uncertainty
They also allege that in June 2008 there was a management meeting about the uncertainty surrounding the sale of the investment bank and that the bank decided that "consideration should be given to creating some form of staff retention scheme to help retain front, middle and back office staff."
Commerzbank has already said that it will defend these claims in the courts.
Commerzbank said on Friday night: "Dresdner Bank was entitled to take the actions it took in relation to these Dresdner employees' discretionary bonuses in light of the marked deterioration in the investment bank's performance in the months of November and December 2008.
"The bank will be defending these claims vigorously in the courts."
The case demonstrates bankers' increasing willingness to fight for their pay packages in court, in spite of mounting public anger over their bonuses.
Last week Commerzbank dampened down talk of an early end to its losses following its takeover of Dresdner Bank, reiterating that it would be profitable by 2011 at the latest.
Commerzbank needed state assistance to see it through the financial crisis and its takeover of lossmaking Dresdner and it is 25 per cent owned by the German government.
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