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Millionaire trader sues bank over $26m bonus

He was a former star trader at New York-based investment bank Goldman Sachs.

Mr Deeb Salem, 35, has filed a complaint against his former employer because his multi-million bonus was not enough, UK daily The Independent reported.

The Princeton graduate claimed that his “small” US$8.25 million (S$10 million) bonus for 2010 does not reflect his performance.

He filed an arbitration claim last year arguing that Goldman owed him more than US$21 million (S$26 million) in unpaid bonuses after he left to join a hedge fund in 2012.

He said he helped the bank in billions by betting against the mortgage market in 2010, Bloomberg reported.

Mr Salem said he told his mum that he would receive at least US$13 million for the year. 

Unfairly punished

But he claims that he was unfairly punished for a series of comments he made in the run-up to the financial crisis that caused the firm “reputational harm”.

An arbitration panel ruled against him in March.

On Friday Mr Salem filed suit in a New York state court seeking to vacate the panel’s decisions on ground that the arbitrators denied him the chance to make his case, Wall Street Journal reported.

The bank is due to respond to the suit next month.

A spokesman for Goldman Sachs described his claims as “utterly ridiculous”.

She highlighted that Mr Salem made more than US$35 million over six years.

He received a bonus of US$15 million in 2009 after being promoted to managing director at the age of 29.

Source: Independent, Bloomberg, Wall Street Journal

 

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