Investec was handed a comprehensive victory against Andrew Brogden and Robert Reid, the former head and deputy head of its structured equity derivatives desk, who claimed they were owed an excess of £6m in bonuses for the financial year of 2010 to 2011.
The pair, who joined in 2007, alleged that the company had failed to honour an unwritten agreement which meant their bonuses were unaffected by profits and losses, protecting them from the large losses made over the period.
They said their bonuses were instead based on theoretical savings made by the bank in relation to the bond market.
However, according to Reuters, Judge George Leggatt dismissed their claims, saying: “I regard their claim that an oral agreement was made to use the ‘institutional market rate’ in calculating their bonuses as wholly incredible.”
He allegedly said that despite being convinced of the pair’s honesty and genuine belief in their claims, he could only judge what was fair in terms of contract.
The pair were also ordered to pay Investec’s £1.5m legal fees.
Investec's chief executive, London, David Van Der Walt, called the case a “baseless claim” and an “unwarranted attack on our institution, our culture and our values”.
“We operate a fair and rational bonus system which rewards those who generate returns for our stakeholders and clients,” he said. “It is unfortunate that these claims were ever issued, but we move on from here, vindicated in our approach.”
