Former Barclays Swaps Trader Wins Millions in Back Pay

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 [e-mail]

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