Banker claims £7.5m in sexism case

DETAILS emerged today of a record £7.5m sexism claim in the City. Stephanie Villalba, the most senior woman to sue a City firm for alleged sex bias, is claiming the sum after being made redundant from her £1m-a-year job with Merrill Lynch. If she wins, the damages will be the largest ever awarded by a British employment tribunal.

Mrs Villalba, 42, one of the UK's leading investment bankers, had been with Merrill Lynch for 17 years when she lost her job last August.

The tribunal, starting today, threatens to uncover the US bank's most sensitive inner workings and is expected to see high-ranking executives called to give evidence.

By August 2002, American Villalba was entrusted with investing funds for Merrill's most important clients in Europe. She was in such demand potential clients would be considered only if they had more than £500,000 to invest. Her success bought her a £4.5m five-storey Georgian home in Belgravia.

But last August she was told she had no future at the company and was made redundant. In response she launched a claim of unfair dismissal, sexual discrimination and unequal pay against Merrill Lynch Europe, Merrill Lynch & Co, and Merrill Lynch International.

Villalba, the daughter of a stockbroker, has also demanded in High Court hearings that Merrill Lynch hand over emails, notes and other personal data about her.

City insiders have told of her determination to make her former employers pay for the way they are alleged to have treated her.

'As far as she is concerned she was doing a very good job for less money than those heading up other divisions, and yet they decided they would let her go,' said one.

Merrill bosses are on standby to fly from New York to West Croydon employment tribunal. Executives who could be called include Villalba's immediate superior, managing director Phil Sieg, and his boss Raymundo Yu.

A spokesman for Merrill said: 'We are unable to talk about the details of the case but are very keen to point out that we do not condone gender discrimination in any way.'

Last month the bank settled a 10-year battle with 1,000 of its women brokers in America. They claimed the bank had a culture of bias against women. Merrill was ordered to pay one banker, Hydie Sumner, £1.2m compensation.