By Matthias Rieker
An arbitration panel ordered Barclays PLC to pay a former swaps
trader about $9 million in back pay that he didn't receive after
quitting during a regulatory investigation, according to his
lawyer.
Mayank Chamadia, who joined Barclays in 2004, was placed on
administrative leave from his derivatives-trading job in June 2013
because, he was told, his group was part of an industrywide
investigation into alleged manipulations of interest rate swaps,
according to his lawyer, Jonathan Sack.
He resigned in October 2013, and last year demanded to be paid
bonuses that would have vested after his departure.
Last week, a Financial Industry Regulatory Authority arbitration
panel awarded Mr. Chamadia $3.7 million in deferred compensation
for 2010 to 2012 that had vested by March 2014, plus interest,
according to the award posted on Finra's website on Friday. As is
customary, the panel didn't provide a reason for its decision.
Finra is the securities industry's self-regulatory agency.
The award also includes deferred compensation that has vested
since 2014, which the arbitration panel didn't quantify. Mr. Sack
said the total award would add up to about $9 million.
Mr. Chamadia wasn't accused of any wrongdoing and fully
cooperated with the investigation; he wasn't a subject or target,
Mr. Sack said.
Mr. Chamadia received his base salary during the administrative
leave, but like most traders he made most of his compensation
through bonuses tied to his trading.
Without trades, the bonus would vanish and his chances of being
hired at another firm would diminish because he was off the trading
desk, Mr. Sack said. So as his administrative leave dragged on, he
decided to leave Barclays to join Balyasny Asset Management.
Barclays withheld the deferred compensation, Mr. Sack said.
"If somebody hasn't been charged with a criminal activity or
violated any kind of regulation, how can you just take away their
earned compensation?" Mr. Sack said.
Barclays didn't immediately respond to requests for comment
Friday.
Write to Matthias Rieker at matthias.rieker@wsj.com
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