Goldman Sachs has been ordered to pay Sanford Katz, one of its former star brokers, now at UBS, $2.5 million after a legal fight over his cl...

Goldman Sachs has been ordered to pay Sanford Katz, one of its former star brokers, now at UBS, $2.5 million after a legal fight over his client list, according to a report in the Wall Street Journal. It is the largest employment-related arbitration award levied against Goldman, according to Securities Arbitration Commentator, a newsletter that tracks arbitration awards. The case revolved around Goldman’s accusations that Mr Katz contacted his former customers once he moved to UBS and that as a result he had forfeited stock awards previously granted to him. Mr Katz claimed Goldman invested part of his compensation in the awards. The firm has stated that they were a bonus on top of compensation. Mr Katz is based in San Francisco, and is one of the US's top-producing brokers. In June 2005, he was placed 32nd on Barron's list of "America's best financial advisers" with assets under management of $1.07 billion. Mr Katz claims he made as much as $3.5 million annually at the firm and that it withheld more than $2 million of his pay from 1999 to 2002, investing it in the firm's stock incentive plan. "It appears Goldman's stance is coercive and unenforceable as a violation of public policy. If he has earned the money, it is his," said Manhattan lawyer David Wechsler, quoted in the WSJ.