Royal Bank of Scotland
The Royal Bank of Scotland has settled a dispute with its former head of risk in its investment division Reuters

The Royal Bank of Scotland has settled a lawsuit with the former head of risk from its investment bank division, over an unpaid £700,000 portion of his bonus.

RBS had asked a London High Court to block a bonus awarded to Gary Cottle before he was dismissed from the bank in a 2011 reshuffle. RBS alleged he would not accept an alternative role and therefore should not be paid his 2009 bonus.

Cottle, who joined RBS from Morgan Stanley in 2007, said he raised concerns about a toxic debt deal, which was the source of the dispute.

His 2009 bonus of £1.9m was deferred over two years and paid in RBS bonds, the bank said in court documents. The bonds vest, or mature, at the discretion of the remuneration committee if an employee has left the lender.

"The parties have resolved their differences. Neither party will make any further public statement," said a spokeswoman for RBS.

Related

Cottle was hired by Japanese bank Nomura in 2012 to help grow its fixed income business across Europe, the Middle East and Africa. He is now head of global markets at the bank.

RBS has promised to claw back money from disputed bonuses since the bank was bailed out after the 2008 collapse.

The case is: The Royal Bank of Scotland Group Plc (RBS) v Mr Gary Cottle, case no. 12-1948. High Court of Justice, Queen's Bench Division.