Star trader suing Scotiabank for $100 million

Worker's compensation averaged $13 million over the last three years
|Canadian Employment Law Today

Scotiabank is facing a $100 million wrongful dismissal lawsuit from a former star trader.

David Berry, vice-president and director of Scotia Capital, was dismissed in June 2005. In a 72-page statement of claim he filed with the Ontario Superior Court of Justice, Berry alleged the bank forced him out because members of the board of directors and senior management resented his status as one of the bank’s highest paid employees and they were unsuccessful in forcing a reduction in his compensation.

Berry started working for the bank in 1995. He said his duties and compensation increased significantly over the years, reflecting his success as a trader. His compensation arrangement, called “direct drive,” entitled him to 20 per cent of the bank’s net earnings in the preferred shares business. Over the last three years of his employment, he earned an average of $13 million annually, he said.