Sales Director of bank receives severance package of £170,000
17 March 2011
Our client was the Sales Director for a publicly listed Bank. Her Service Agreement contained a provision which sought to give the Bank the ability to terminate her employment summarily if in the opinion of the Board she was performing poorly. The Bank was threatening to invoke this clause. Her notice period was 12 months and the value of her salary and benefits for the notice period was in the region of £150,000. In the event we persuaded the Bank’s solicitors that their proposed way forward was inappropriate. Terms of severance were agreed which resulted in a payment to our client in the region of £170,000. This sum was subject to tax but we were able to secure the most preferential possible tax treatment relating to the payment. During the course of our negotiations we were able to improve our client’s position in relation to tax in the region of £30,000.