Bankers Hit With Millions in ‘Breakup Fees’ For Ditching New Jobs on Wall Street – Bloomberg

This story begins happily enough, with a nearly $10 million offer from Jefferies Financial Group Inc. The lucky hire was Dean Decker, a rainmaker at Credit Suisse Group AG.

The catch: If Decker reneged before he started, a clause in his nine-page offer letter read, he’d have to pay Jefferies what amounted to a personal breakup fee. The price to walk away: $4 million. Walk away Decker did.

Seven years later, the legal fallout is still raining down. A federal appeals court in California is now poised to rule on whether the Jefferies maneuver was legal or, as Decker’s camp has contended, tantamount to ransom. During a hearing on April 12, two of the three judges on the panel appeared to express skepticism about Decker’s argument.

Source: Bankers Hit With Millions in ‘Breakup Fees’ For Ditching New Jobs on Wall Street – Bloomberg