A settlement agreement for someone earning a fixed salary is usually straightforward. A settlement agreement for someone working in banking, asset management or fintech rarely is — because so much of the real value sits outside base salary, in bonus, deferred share awards, and long notice or garden leave periods that a standard settlement agreement template often doesn't deal with properly.
Why banking and finance settlement agreements are different
Four things come up again and again in Canary Wharf and City exits that don't apply to most other settlement agreements:
Deferred and unvested bonus. Many finance roles pay a meaningful part of annual compensation as bonus deferred over two, three or more years, sometimes in cash, sometimes in shares. Whether that deferred bonus is paid, forfeited, or accelerated on exit depends on the wording of your bonus scheme rules and your settlement agreement — not on what feels fair.
Share awards and vesting. Restricted share units, performance shares and options often have "good leaver" and "bad leaver" provisions buried in the scheme rules. A settlement agreement that doesn't address how you're being classified can cost you awards worth far more than your headline severance figure.
Garden leave, often for months. Client-facing and investment roles frequently carry long notice periods and garden leave, which can run for six months or more. Garden leave pay needs to be checked against contractual notice pay, and against how it interacts with any new job you're lining up.
Restrictive covenants. Non-compete, non-solicitation and confidentiality clauses are used far more aggressively in finance than in most other sectors, and a settlement agreement is often the point at which an employer tries to extend or tighten them in exchange for the financial terms on offer. See our guide to restrictive covenant enforceability for what makes these clauses valid — or not.
Why the numbers can be bigger than you'd expect
Two changes make this a live issue for Canary Wharf employers specifically right now. From 1 January 2027, the cap on unfair dismissal compensation is being removed entirely — for a senior finance professional on a six-figure salary with bonus, that uncapped exposure is exactly why more employers are expected to settle earlier, rather than risk a tribunal. We cover this in detail in what the end of the unfair dismissal cap means for Canary Wharf settlement agreements.
What to have ready before you take advice
- Your contract of employment and any variation letters.
- Your bonus scheme rules or plan documents, not just your last bonus statement.
- Any share plan or LTIP documentation, including vesting schedules.
- The settlement agreement itself and any earlier drafts or correspondence.
Free, same-day advice for Canary Wharf finance professionals
Deen & Co Solicitors is based on the 18th floor of 40 Bank Street, Canary Wharf, and regularly advises employees across the estate's banks, asset managers and fintechs on settlement agreements involving bonus, share awards, garden leave and restrictive covenants. Your employer pays our fee in almost every case. Read more about our Canary Wharf settlement agreement service, or send us your agreement for a same-day review.
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