Massive payout over sexism in the City

A high-flying woman executive who missed out on shares worth up to £2 million after taking maternity leave said today she had reached an out-of-court settlement with her former employer.

Jane Hayes said she had struck a blow for women wanting to combine motherhood with a career.

The 39-year-old former senior insurance underwriter declined to reveal how much she settled for, but employment lawyers said she could have received up to £1.5 million on the grounds of equal pay, plus a further amount for sex discrimination.

She lost a "sexism in the City" employment tribunal three years ago when she claimed that having babies meant she had been passed over for performancerelated share options. On appeal, however, she won the right to have the case re-heard - and today, before a new employment tribunal was convened, she said she had reached agreement with the company.

Ms Hayes, who worked for Charman Underwriting Agencies, which has since been taken over by ACE of Bermuda, said: "I have continued to pursue this case because I believe it to be an issue of principle.

"As I said at the time of the original hearing in 1999, professional women should be able both to sustain a successful career and be a good mother, without fear of discrimination or prejudice.

"My point has been made and I now consider the matter closed."

Ms Hayes, who was responsible for underwriting onshore and offshore energy risk accounts, had claimed sex discrimination, constructive dismissal and breach of contract at the tribunal.

She won the breach of contract claim but lost on the two more substantial points.

The tribunal heard that her relationship with the company went downhill after she took spells of maternity leave in 1994 and

1996. At one point, managing director John Charman was said to have excluded her from a meeting, saying: "Don't worry yourself because we are discussing something we decided when you were off having babies."

Ms Hayes, of Marden, Kent, told the 1999 tribunal she was "robbed" because her male colleagues received £4million in shares, while she received £2.5 million. She was also unhappy with her salary increase from £60,000 to £70,000 plus a £25,000 bonus, calling it "offensive".

But Mr Charman told the tribunal Ms Hayes's portion of the share options was decided because of her "unexceptional performance" and had nothing to do with her being a mother.

A spokesman for Ms Hayes said that after she lost the case, she took her application to the Employment Appeals Tribunal, which last October overturned the original judgment on the grounds that the tribunal's approach to the question of direct sex discrimination had been "fatally flawed in law".

A spokesman for ACE was unavailable for comment.