Yang Zhizhong v Nomura International (Hong Kong) Limited

[2024] HKCFI 2192, the Court of First Instance dismissed the claims by a former employee for discretionary bonus award, annual base salary and loss of unvested bonus awards.

The Plaintiff was employed by the Defendant bank as a senior investment banker. During an on-site inspection, the SFC identified a “three-way meeting” held amongst the Plaintiff, a potential IPO applicant, and the bank’s research analyst, during the final stage of the bank’s pitching for the IPO transaction, and without notifying the bank’s control room. This gave rise to a potential conflict of interest between the bank’s investment banking division and its independent research division, and a risk that the latter would be perceived as helping to solicit IBD business.

After conducting an internal investigation and a disciplinary committee review, the Defendant considered that the Plaintiff did not take sufficient steps to manage any perceived conflicts of interest, and issued a written warning to the Plaintiff. The Defendant also decided to grant the Plaintiff a zero discretionary bonus for the performance year 2016/17, and exercised its contractual right to terminate the Plaintiff’s employment on the ground of redundancy in May 2017.

The Plaintiff brought claims against the Defendant for breach of the employment contract in issuing him the written warning, in failing to grant a discretionary bonus award, and in terminating his employment on the ground of redundancy.

Cheng J dismissed the Plaintiff’s claims, holding (amongst other things) that:

 were instructed by and acted for the Defendant.

 also acted for the Defendant during earlier stages of the proceedings.

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