Bankers bonuses: “irrational or perverse?"

Bankers ready to sue if bonuses too small

By Louisa Peacock, Jobs Editor, 6:30PM GMT 02 Jan 2012

British banks should brace themselves for claims from "disgruntled" bankers who will not roll over and accept lower bonuses than usual despite the huge public and shareholder backlash against out-of-control pay, legal experts have warned.

One claim for £1.5m is understood to have already made its way into the system last year, after a banker believed their 2011 bonus was too low. The case is believed to have been rejected before it got to court, with lawyers acting for the bank branding the claim "whimsical".

Judges are also said to be unsympathetic towards bankers' claims that their bonuses are too small in the current climate.

Richard Fox, employment partner at law firm Kingsley Napley, said: "We're seeing an increase in bankers seeking advice on their options. There are people [who will be] disgruntled they are getting less bonuses so why wouldn't they? "

 Bankers who did not "trust" the reward they received could work out what they thought they should have got based on a calculation of the bank's profits and their share in the type of bonus pool available, he said.

"These are the areas in which we hope to achieve something," Mr Fox said, adding bankers "are not the sort of people that don't consider their options".

The case would end up at the High Court but he warned bankers would have to show their bonus pot was "irrational or perverse" - difficult in the current climate when banks were under pressure to reign in excessive pay.

Read more at: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8987836/Bankers-ready-to-sue-if-bonuses-too-small.html

Customers Ready to Sue if Bankers Pay Bonuses

By Anne T. Trust, Customer Rights Editor, 6:31PM GMT 02 Jan 2012

British banks should brace themselves for claims from "disgruntled" customers who will not roll over and accept that banks pay bonuses to employees despite the huge public backlash against out-of-control pay and taxpayer bailouts, legal experts have warned.

One claim for £1.5m is now pending in the courts when a group of customers determined that the bonuses being paid where way too high. The suggestion that bankers should get bonuses after having destroyed the economy was branded as “whimsical” by lawyers advancing the case on behalf of bank customers.

Judges are also said to be sympathetic towards customer’s claims that their bonuses are too large in the current climate. Judges, it should be noted, are also customers who are tired of being fleeced as well.

Daniel Godson, employment partner at law firm Queensley Nappy, said: "We're seeing an increase in customers seeking advice on their options. There are people who are disgruntled because they are getting less services at greater expense, so why wouldn't they? "

Customer who did not "trust" the bankers could work out what they thought should be paid to bankers, especially after having received bad investment and banking advice.  They could base this on a calculation of the bank's service levels, its opening hours and the customer satisfaction levels.

"These are the areas in which we hope to achieve something," Mr Godson said, adding customers "should not be the sort of people that don't consider their options".

The case would end up at the High Court but he warned customers would have to show that banker’s bonuses were “irrational or perverse" – something fairly east to do in the current economic climate.