Whining for Dollars

StockJockey's avatar
by StockJockey
Monday, April 02, 2007 - 9:39 am

The liftout of the fixed-income team at Invesco continues to amuse us...only on Wall Street can seven-figure annual compensation packages be compared to indentured servitude.

By Sree Vidya Bhaktavatsalam

March 28 (Bloomberg)—Amvescap Plc, the owner of Aim and Invesco mutual funds, was sued by three bond managers who want to defect to Deutsche Bank AG, saying they are trapped in ``indentured servitude’’ by restrictive employment contracts.

The lawsuit comes two days after Atlanta-based Amvescap sued the New York-based fund unit of Deutsche Bank, claiming the company staged an illegal raid to lure away 16 members of its bond group. Amvescap’s shares fell 5 percent on concern its earnings would be hurt by the loss of the bond team, which helps manage one-fifth of the company’s $463 billion in assets.

Maybe these guys are not so smart after all, since they were working for below-market wages and a firm with shoddy compliance practices.
imageYeah right.

``The restrictive covenant is no less than a form of indentured servitude,'' according to the three managers' complaint. The three are part of a group of five senior managers who resigned from Amvescap to join Deutsche Bank. Johnson, the chief investment officer of the Invesco bond-management unit, and the two other plaintiffs said Amvescap ``cajoled'' them to agree to a 12-month notice by saying it would let them vest in more stock options. In their lawsuit, the executives said Invesco's compliance practices were not up to industry standards, and that the company lacked the technology and support staff to properly serve clients. Bloomberg For the rest of you stuck in crummy jobs, this is a great example of how not to do a liftout. Now get back to work!
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