(17 August 2010 – Europe) The former chief executive officer of the European division of Nomura has received a severance settlement of almost £22 million (A$38 million).Sadeq Sayeed’s settlement is one of the largest payouts the nation has ever seen, after the head resigned from his post after only 16 months.
The inflated payout is reportedly in recognition of Mr Sayeed’s swift actions as CEO to capitalise on the demise of Lehman Brothers.
Nomura lost its bid for Lehman Brothers US division to Barclays Capital, however secured the failed bank’s London-based European operations.
The payout will possibly be frowned upon in the investment bank’s country of origination, where large settlements are discouraged.
Mr Sayeed has been replaced by Tarun Jotwani, formerly the bank’s head of global fixed income.
The payout is larger than the payout received by Fred Goodwin, the former chief executive officer of the Royal Bank of Scotland, and resulted in Mr Goodwin becoming one of the most despised bankers of the global financial crisis.
His package, which is thought to include share options and pension, amounts to 16 percent of the pre-tax profits earned by Nomura International – which covers most of Europe, the Middle East and Africa – in the year to March 31.