Wall Street executives are usually forgiven for losing track of personal obligations - not so, in the case of Credit Suisse CEO Brady Dougan, whose lapse is painfully costly.  Mr. Dougan was 12 days late in making a $7.5 million divorce payment - back in 2006 - and, as a result, owes his wife an additional $750,000 in interest.

The Connecticut Supreme Court unanimously upheld a section of the Greenwich resident's divorce settlement dealing with interest on late payments, overruling his objections.  The justices noted that Dougan is a "financially sophisticated" businessman and had agreed to the terms, which stipulated a interest at an annual rate of 10% if he was late with the $7.5 million payment, which was due in June of 2006.  While the CEO was late, he paid her an additional $25,000 for the 12 days' worth of interest. However, the ex-wife's attorney claimed the man owed his ex-wife more.

Wife Seeks Even More.   The ex-wife's attorney asserted that the CEO of the Credit Suisse Group should be obligated to pay an additional 10% annual interest over the last five years on the $750,000 penalty on which he was delinquent.  If the court rules again in his former wife's favor, the CEO would face a total fee of around $1.1 million. Whether he will be forced to pay this sum is expected to be resolved at a future hearing.

Dougan's Rebuttal.   The CEO contested that the sum he paid - the $25,000 interest on 12 days - should be sufficient and that he should not be charged interest more than the 12 days in whih he was delinquent.  The state Supreme Court justices disagreed, however, unanimously ruling cthat the man pay his ex at the rate determined in the divorce settlement. 

Brady Dougan and his wife signed the divorce settlement in June 2005.  Dougan was worth nearly $80 million and had agreed to pay his wife $15.3 million in two installments - his ex-wife also received the couple's home which was valued at $9.6 million at the time, as well as a 2000 BMW vehicle.  

Full story on ...  [Huffington Post, 8/15/11]