Banker Questioned in Federal Court

In 2008, St. George Bank former chief executive Paul Fegan allegedly encouraged its seven bankers to stay with the bank leading to the merging with Westpac.

The bankers showed that a letter from Fegan was sent to them in June 18, 2008 stating that they would be entitled to incentives if the bank reaches its target earnings for the year.

After the merger, the bankers were not given incentives or bonuses despite being able to meet the 8.3-percent target. The bankers were also given the pink slip and were declared redundant.

According to these bankers, they found out they can only be given bonuses if the bank’s earnings per share growth is at 10.1 percent. This target, however, was never communicated and Fegan failed to specify this in his letter.

Fegan appeared in the Federal Court clarifying that he does not know why the 10.1 percent information was left out in the letter.

Sarah Elliott, who worked for St. George Bank’s human resources department, also shared that it is probable that the information was left out deliberately. This was to avoid the bank’s competitors to get such sensitive information and recruit its bankers by giving a better package or offer.

She explained that the bankers were supposed to be informed on the 10.1 percent figure orally after receiving the letter from Fegan, which never happened.