The original contract said Herbert’s annual pay would be 24 million rand ($3.1 million). JPMorgan blamed the mistake on a typographical error and said the figure should have been 2.4 million rand, according to court documents.
Herbert is now suing after he realized that he’d make a mere $300,000 a year. As the attorney for J. P. Morgan noted:
How can you possibly suggest that they would pay you so much money for an executive director level job?
This strange story alludes to this lawsuit:
More than 100 bankers claim Commerzbank AG broke a pledge by Dresdner Bank, which it bought in 2009, to set aside about $516 million for bonuses and are asking a U.K. court this week to order that they be paid. In the trial, scheduled to begin Jan. 25 in London, the former Dresdner bankers seek about 50 million euros ($64.5 million), with individual payouts of as much as 2 million euros ... Commerzbank bought Dresdner in January 2009, even though it was forced to seek an 18.2 billion-euro bailout from Germany during the credit crunch. A month after the deal was struck, Blessing had to defend the acquisition when Dresdner posted a full-year loss of $8 billion.
During the Great Recession, these bankers insist they are entitled to 7-figure compensation!