Putting the doctrine of inevitable discovery to good use, Nomura has decided that it should not reward executive search firm Hogarth Davies Lloyd with "finding" employees that fell into their lap through the Lehman bankruptcy. In 2007, Nomura agreed to pay the headhunter £50,000/mo plus a minimum of 25% of the first year's pay for each person Nomura retained. But in the era of trying to get something for nothing, Hogarth believes they should earn their standard fee for placing the executives Nomura took on anyway when they acquired Lehman's Asian and European operations and is filing a lawsuit.
"There is a dispute about the extent of Hogarth Davies Lloyd's role in the Lehman Brothers' acquisition and the fee that is properly due," said Stephen Sidebottom, Nomura's head of human resources for Europe, in an e-mailed statement today. "The claim is misconceived and Hogarth Davies Lloyd is seeking a commercially absurd sum."
By now you'd think executive search firms would know banks accept bailouts, governments provide them.