Tony Danker, the former director-general of the CBI, is to receive in the region of £500,000 from the business lobbying group in a settlement reached nearly a year after he was ousted in the midst of a wider sexual misconduct scandal.
Sky News has learnt that Mr Danker, who left the organisation in April 2023, struck a six-figure settlement with the crisis-hit organisation earlier this year.
Multiple sources described the agreement as being worth in the region of £500,000.
The figure, which has not been publicly disclosed, appears to be at odds with an item in the CBI’s annual report and accounts published earlier this week, which said that £188,000 had been paid in relation to director severance costs during its last financial year.
One City source said that this implied that part of Mr Danker’s settlement was likely to be paid out in subsequent years.
A CBI spokesperson said: “In February 2024 the CBI settled legal action brought against the organisation by Tony Danker after his dismissal in April 2023.
“Neither the CBI nor Mr Danker have any further comment regarding the agreement reached between the parties”.
If correct, the figure of approximately £500,000 is likely to raise further questions about the CBI’s handling of Mr Danker’s dismissal during a period when the self-styled ‘voice of business’ began to descend into existential crisis.
His salary in the year prior to his departure was around £400,000.
The organisation was found to have presided over a culture of sexual misconduct over a long period, although Mr Danker was not personally implicated in any serious actions of that nature.
Scores of blue-chip corporate members, including Aviva and John Lewis Partnership, resigned their memberships.
Some, such as KPMG and NatWest Group, have recently rejoined.
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The CBI remains in a precarious financial state, reliant on support from a group of high street banks.
This week, Sky News revealed that it was trying to sub-let parts of its City headquarters in an attempt to save money.
The barrister who represented Mr Danker, Bruce Carr KC, and the former CBI chief’s law firm, BDBF, are understood to have agreed to work on his litigation on a no-win, no-fee basis.
Mr Danker refused to comment when contacted by Sky News.