A City investment bank accused of forcing out a highflying member of staff because he was “not German enough” has admitted that it unfairly sacked the executive.

But the bank, Dresdner Kleinwort, vigorously denied claims by its former managing director, Malcolm Perry – who is seeking £10 million in compensation – that it was guilty of racial discrimination.

Ingrid Simler, QC, counsel for Dresdner Kleinwort, told the employment tribunal in Central London that the bank had conceded to Mr Perry’s unfair dismissal claim as it had “failed to comply with statutory dismissal procedures” when it made him redundant during a merger.

Mr Perry, 45, an Australian who was headhunted as the bank’s £2.2 million-a-year global head of fixed income, says that he was sidelined and eventually made redundant as senior, Frank-furt-based bankers hatched a plot to turn Dresdner “back into a German bank”. The claim centres on events leading to the restructuring of the bank in 2005, which involved merging its corporate and investment units.

Mr Perry, who received a €1.3 million (£900,000) “golden hello” on joining Dresdner Kleinwort in 2003, claims that he and other nonGerman speakers were excluded from discussions about the plans. Yesterday he said: “It was a surprise to me that I was not considered highly relevant to the picture that was being discussed.”

Ms Simler asked him whether he was aware that the new German chief executive, Stefan Jenztsch, had discussed moving responsibility for loans out of the capital market’s department with Mr Perry’s boss, Steve Bellotti, a fellow Australian.

Mr Perry replied: “I know they wanted to combine certain business areas but we were being told the final structure would be the outcome of the working groups.”

The banker also denied a claim that he had missed crucial discussions in Frankfurt because he was ill after a heavy bout of drinking the night before. He said that he left the meeting because he was suffering from flu and added: “I was not riproaring drunk or unprofessional in any way.

“I do not think not being there for that particular period of time would have then led to the other times when I was excluded from discussions. It appears there was some effort to make sure I and others were not involved.”

The hearing continues.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts