Fighting for a share of the purse by Matt O’Sullivan

A bantamweight boxer is about to be pitted against the heavyweight Macquarie Group.

In a David-and-Goliath battle, a former Macquarie proprietary trader, Maghnus Byrne, is suing the big doughnut for $750,000 in damages he reckons he suffered when the bank withheld his profit-share bonus after his contract was ”terminated”.

The case in the NSW Supreme Court threatens to embolden many other Macquarie types scattered around the globe whose contracts were terminated when it took a razor to its labour bill in the aftermath of the global financial crisis.

Byrne first got a job with Macquarie in Hong Kong in 2001. Over the next seven years he diligently worked his way up the ladder to eventually earn the lofty title of ”associate director, equity derivatives trader”.

Along the way, he earned pay rises and bigger bonuses under the profit share scheme. In his last year his salary was raised to $HK1.4 million ($200,000) and he was due for $HK15 million in profit-share bonuses. He even claims he received an ”extremely positive” performance review two months before he was sacked.

But in November 2008 a Macquarie bigwig and sportscar lover, Kim Burke, sent him a letter terminating his contract.

Macquarie uses the bonus pool to retain good staff. Bonuses are paid over five years to ensure they don’t end up scoring big bonuses and then running for the door. If they do leave, the bankers forfeit their profit share.

But in Byrne’s case, he claims he is entitled to his share of the bonus pool because the bank dumped him and not the other way around. It’s a point Macquarie doesn’t accept.

Ultimately the courtroom fight will be over the wording of the bonus pool policy.

Byrne has shown inside and outside the ring that he can pack a punch. In late 2007 he swapped his suit for satin boxers to swing a few punches at other bankers in a charity fight called the Hedge Fund Fight Night.

The first round in his latest skirmish is scheduled for court on April 9.