Tuesday, 27 September 2016
Last updated 33 min ago
Jan 27 2014 | 11:39am ET
A company owned by Kohlberg Kravis Roberts has settled a hiring dispute with JPMorgan Chase.
First Data Corp., which is led by former JPMorgan executive Frank Bisignano, will pay less than $10 million to resolve the matter. The bank had accused Bisignano of violating his employment contract by poaching several JPMorgan employees following his departure.
After First Data hired Guy Chiarello and Christine Larsen—two of several bank employees to leave for the company—JPMorgan complained about the moves to KKR officials, some of whom sit on First Data's board. While Bisignano's contract did forbid him from soliciting JPMorgan employees, KKR argued it did not bind First Data as a whole.
Bisignano, known as a problem-solver at JPMorgan, moved to First Data last year, after JPMorgan CEO Jamie Dimon made it clear that he would not be in the running to succeed him. Bisignano and Dimon had been close, and the latter in 2012 promoted the former to co-chief operating officer. According to The Wall Street Journal, Dimon and Bisignano have patched up their personal relationship, as well, and First Data and JPMorgan continue to do business together.