Sidley successfully defended Investec Bank PLC in its five-year battle with former senior employees over the application of the bank’s bonus policy. The proceedings before the High Court of England and Wales were brought by the former head and deputy head of Investec’s structured equity derivatives desk and claimed that bonuses of millions of pounds should have been paid to them. The case threatened to undermine the bank’s longstanding policies and contractual arrangements with serious potential downstream consequences. The claims attacked the basis on which the bank calculated employee remuneration and alleged that the Chief Executive of Investec had made an oral agreement with the claimants to the effect that special provisions would apply when determining their bonuses.

After a three-year battle, a two-week trial took place in August 2014, and all of the claims were dismissed and Investec was awarded its costs. Sidley went on to twice defeat the claimants’ attempts to obtain permission to appeal; their application was granted before a single judge and the full appeal was heard on October 6, 2016. At the full hearing, Sidley again delivered a win for Investec with the appeal being dismissed with costs.

Partner Matthew Shankland and associate Sarah Lainchbury represented Investec, supported by other members of Sidley’s London Disputes Resolution team.