Bunting, left, and Walters
Dennise Williams, Staff Reporter
INVESTMENT EXECUTIVE Mark Walters has filed a claim in the Supreme Court against his former employers, investment bankers Dehring Bunting & Golding (DB&G), for the sum of $750 million (US$12 million) .
Mr. Walters was previously assistant vice-president in the treasury department of DB&G. He joined the firm in 1997, but Mr. Walters and DB&G parted company in May 2004. In previously published reports, senior executives at DB&G told the Financial Gleaner that the split was, "perfectly amicable. Mark was a valued employee, who contributed to the growth of DB&G and its presence in the market, we will miss him."
However, a new chapter has unfolded and will be played out in the courtroom.
MUTUAL AGREEMENT
A release by DB&G stated, "Mark Walters was employed by DB&G in December 1997 as senior manager of treasury and asset trading, and he resigned by mutual agreement in May 2004. The termination agreement included a substantial ex gratia termination payment, which took into account all his emoluments, including profit share. Mr. Walters has now filed a claim in the Supreme Court against DB&G for $750 million for profit share he says was due to him during his period of employment."
Mr. Walters tells the Financial Gleaner, "Taking the matter to court was not an easy decision. A lot of threats and counter threats were made and so I have handed the matter over to my lawyers. As far I am concerned, I had a contract with DB&G that outlined specific performance measures and I met them. And so, like any contract dispute, you refer it to the courts."
However, sources within DB&G explained Mr. Walters has been more than adequately compensated. For example, he benefited from the company's profit share scheme monthly. Additionally, during Mr. Walter's tenure at the company, he was offered an employee share offer plan (ESOP) of 1.8 million shares at a price of $0.75 per share. This ESOP was valued at $1.35 million. The purchase of these shares was facilitated by a loan at 12 per cent. However, during the time of Mr. Walter's employment, there was a one-for-one bonus share offer, which doubled his holdings to 3.6 million shares. While our source could not confirm that Mr. Walters held on to those shares, it was noted that the current value of those shares is approximately $40 million.
EQUITY STAKE
And it has been rumoured in the financial community that Mr. Walters wanted an equity stake at DB&G because of his contribution to the company. However, to this rumour Mr. Walters replies, "Equity stake? I do not want to get into that. As far as I am concerned, that is not the situation and I cannot comment on that sort of thing."
Then why such a large amount? Mr. Walter answers, "Obviously, I think in Jamaica a lot of wrong is done and not brought to light because people feel intimidated and people do not get what is rightfully theirs."
Naturally, DB&G sees things differently. "DB&G regards this claim as baseless and absurd. In the entire period of Mr. Walters' employment at DB&G, its profits did not exceed $1.15 billion, which caused DB&G to question his motives for now claiming nearly three quarters of that for himself."
But, Mr. Walters believes, "I had a contract and this dispute is about the performance of this contract. This is not a vindictive action against the executives of DB&G."
Nonetheless, DB&G states, "We have taken advice and can see absolutely no legal or moral basis for the claim, and will apply to dismiss the matter at the earliest date available in the court calendar."
Mr. Walters is also relying on the court to give him the remedy he is seeking. "The law of the land says when contract is in dispute, refer the matter to the court and I am willing to abide with what the court decides."
And what if Mr. Walters prevails? Peter Bunting, executive chairman of DB&G, tells the Financial Gleaner, "In the wildest of speculation that we lose, our capital base is three times the claim against us. We are a financially strong company. But even if the claim was $1, the case is absolutely baseless."
After leaving DB&G in May 2004, Mr. Walters took a position as business development manager at Mayberry Investments on August 15. Approximately 78 days after joining the ranks of Mayberry, Mr. Walters became vice-president of marketing development at M/VL Stockbrokers Ltd.
