Legal deal

CBI reaches settlement with sacked boss Danker

Tony Danker
Tony Danker: ‘fall guy’

The CBI business lobby group has settled a legal action brought by its former director general Tony Danker for wrongful dismissal.

Mr Danker was sacked with immediate effect last year following complaints about his behaviour.

His departure coincided with a number of allegations of historical misconduct at the CBI which were unconnected to Mr Danker.

The CBI said today that it had agreed an “undisclosed settlement” with him and confirmed that he was not associated with the previous claims.

It has spent the past year attempting to rebuild its standing in the business community after a number of blue chip companies, including John Lewis, BMW and Virgin Media O2, resigned their membership.

High profile events were postponed and the government suspended the group from talks on economic and business policy.

There have been concerns that it would not be financially viable, but it brought back its former chief economist Rain Newton-Smith to launch a revival plan to rebuild the organisation. Staff numbers were cut by a third.

Mr Danker acknowledged in a television interview after his dismissal that he had made some staff feel “very uncomfortable”, adding: “I apologise for that.”

But he claimed he had been made “the fall guy” for the wider crisis engulfing the CBI and that his reputation had been “totally destroyed”. He decided to pursue legal action, hiring Bruce Carr KC, author of the Carr Review on industrial disputes.

In a brief statement today the CBI said it had settled the case, adding that its board “also reiterates that Mr Danker is not associated in any way with the historical allegations reported in the media concerning matters which pre-date his tenure at the CBI and rejects any such association”.

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