High Court hears claim over £6.3 million bonus paid as Barings team allegedly moved to rival Corinthia

A High Court battle centers on claims that Adam Wheeler, a private equity banker and former co-head of Barings' Global Private Finance Group, orchestrated an egregious move to rival Corinthia. BISL alleges he secretly helped establish Corinthia while coordinating a mass resignation by him and 12 colleagues the day after they received a £6.3 million discretionary bonus.

According to BISL, Wheeler earned more than £20 million during his time at Barings, including more than £4 million in 2023 alone. The company contends he knew about and concealed the plan to switch to Corinthia, which BISL describes as a competing business. The alleged timing allowed him and the departing team to pocket the bonuses before BISL was aware of the move.

The timeline at the center of the dispute stretches back to May 2023, when Wheeler began recruiting for Corinthia. On 13 May 2023 he introduced Kelsey Tucker, former Global Head of Operations at Barings, to Paul Weightman, Corinthia's executive chairman, and recruitment efforts intensified in the months that followed. The alleged co-ordinated resignations occurred on 8 March 2024, by Wheeler and 12 other Barings employees, the same day BISL says the second major discretionary bonus would be paid.

BISL notes that between 22 February and 7 March 2024 a total of £6,306,198 was paid to Wheeler and the departing employees. It argues the bonuses would not have been paid had BISL known about the plan to establish a competitor and to recruit staff away from Barings. Wheeler, who today is joint owner and chief executive of Corinthia, has argued that BISL was better off for his departure and has attempted to have the claim dismissed, a move that was rejected by the High Court.

BISL maintains that Wheeler had a duty not to engage in business that would create a conflict of interest and that he deliberately concealed the move from BISL. The former Barings executive has said that the English proceedings were affecting his ability to disclose the existence of the case to investors. The High Court judge, Mr Justice Thomas Linden, rejected Wheeler's attempt to throw out BISL's claim, and the case continues to proceed in the UK.

The case highlights ongoing scrutiny of executive pay and potential conflicts of interest within the asset management sector, where a successful transition between firms can raise questions about fiduciary duties and the timing of financial awards. BISL is pursuing financial remedies it says are warranted to compensate the company for what it claims was a breach of contract and a conflict of interest tied to Wheeler's conduct. The proceedings in the United Kingdom complement related actions in other jurisdictions as the parties navigate parallel disputes. The next phase of the case is expected to address the scope of remedies BISL seeks and to determine the extent of Wheeler's involvement with Corinthia during and after the alleged move.