Upper Tribunal Tax and Chancery Chamber

UT (Tax & Chancery) UT-2022-000134 UT-2022-000135 UT-2022-000137 - [2025] UKUT 00214 (TCC)

Fecha: 31-Ene-2025

Remuneration

Remuneration

207.

The Traders each had a base salary alongside a discretionary bonus structure.

208.

Bonuses were discretionary and based on performance, including by reference to performance objectives which were measured on a Balanced Scorecard which took into account several factors:

(1)

40% of the appraisal weighting for Mr Urra’s performance objectives related to P&L performance of the Desk (including the Desk as a whole and his own P&L generation) and was the biggest single determinative factor in his appraisal.

(2)

40% of the appraisal weighting for Mr Lopez’s performance related to his own personal P&L performance. This was the biggest single determinative factor in his appraisal.

(3)

21% of the appraisal weighting for Mr Sheth’s performance related to revenue generation, for which he had a target of £1 million. 30% of his appraisal related to management of the ETA book, with a specific target hit ratio. These objectives were together the biggest determinative factors in his appraisal.

209.

Staying within MHI’s risk limits and staying on top of risk management also formed part of all of the Traders’ appraisals.

210.

For 2016/2017, their salaries were £400,000 (Mr Urra), £135,000 (Mr Lopez) and £70,000 (Mr Sheth). We make the additional findings in relation to bonuses:

(1)

For 2014/2015 Mr Urra’s total bonus award was £430,000 in both cash and shares (with £86,000 cash and £86,000 shares payable upfront and the remainder being deferred). For 2015/2016, Mr Urra’s total bonus award was £325,000 (with £97,500 cash and £97,500 shares payable upfront and the remainder being deferred). His proposed bonus for 2016/2017 was £400,000 but all of that was withheld.

(2)

Mr Lopez had only recently joined MHI. His proposed bonus for 2016/2017 was £50,000 but that was withheld.

(3)

For 2014/2015 Mr Sheth’s total bonus award was cash of £4,750 and for 2015/2016 it was cash of £20,000. His proposed bonus for 2016/2017 was £100,000 but that was withheld.