Royal Bank of Scotland (RBS) has settled lawsuits with Gary Cottle, the former head of risk at its investment banking division, over a £700,000 bonus.
RBS argued Cottle forfeited the final part of the 2009 award because he refused alternative jobs before exiting the Edinburgh-based bank in 2011, according to its London lawsuit that sought to block the payment.
Cottle countered that he became embroiled in a dispute with RBS after raising concerns about a "toxic" debt deal and was never offered a suitable replacement role, Bloomberg reports.
The former risk officer, who is now head of global markets for Europe at Nomura Holdings, also sued RBS. Cottle declined to comment on the settlement.
"The parties have resolved their differences," said Sarah Small, a spokeswoman for RBS. "Neither party will make any further public statement."
The terms of the settlement were not disclosed by the court or either party.
Chancellor George Osborne said in November the government would separate RBS's toxic assets in an internal "bad bank" as it seeks an exit for its 81% stake. The lender has made five consecutive years of annual losses.
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