RBS to hire bonus dispute banker

2 November 2010

The Royal Bank of Scotland (RBS) is to hire a banker who successfully sued a former employer for £2 million after he did not receive a full bonus.

John McIntyre, a former banker at Lehman Brothers, is to join RBS as head of corporate finance in Europe and the Middle East, although the appointment remains unconfirmed by the bank.

The executive launched legal action against Dresdner Kleinwort after his bonus was cut due to the financial difficulties the firm endured following the global credit crash.

He was awarded £2 million midway through 2009.

Newspaper reports have claimed that the appointment of Mr McIntrye, who is lauded by many within the City for taking the action, will reignite the debate surrounding the bonus culture within the banking industry.

The hire has also occurred just before discussions due to take place between the Treasury and the bank over the size of its bonus pool for this year.

RBS, which is 84 per cent owned by the state, faced criticism after it paid £1.3 billion worth of bonuses to top executives last year.

The bank justified the figure by saying it risked losing its top talent if bonuses went unpaid.

By Jim Ottewill

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