Former Merrill Lynch brokerage head Robert McCann has settled his lawsuit with his former employer Bank of America/Merrill (NYSE:BAC) today, clearing the way for the 51 year old to become the head of UBS AG (NYSE:UBS) wealth management operations in the Americas next month.
“We did settle the case and Mr.McCann can go back to work in late October,” said McCann’s lawyer, Steven Eckhaus… “We’re very pleased with the settlement.”[Bloomberg]
McCann left as head of Merrill’s army of 16,000 financial advisers in early January, following BofA’s controversial acquisition of Merrill Lynch, after his responsibilities at the firm were significantly reduced. In a resignation letter to then-Merrill Lynch President John Thain, McCann wrote that his position had essentially been downgraded dramatically. “While I understand that changes in personnel and reporting relationships often accompany a merger”, he wrote, “such a drastic diminution changes the nature of the job.”
MacCann sued BofA in August 24, in state supreme court in Manhattan, demanding to be released from a non-compete clause while claiming that the bank had accepted his resignation, placing him on paid ‘garden leave’, then reversed itself, terminating him and cutting off his salary.
The lawsuit was filed amid rumors that McCann was planning to head up the wealth management unit at UBS. The non-compete clause prevented him from taking that job or any other similar job in the financial sector until next January.
The terms of the accord were not disclosed, but it is very likely that McCann and Bank of America also reached a financial settlement.