Bank heads claim 2008 bonuses

THE DIRECTORS of Société Générale and Crédit Agricole have snubbed government demands to suspend bonuses.

The head of Crédit Agricole, Georges Pauget, said that his bonuses had already been decided by the company’s administration and shareholders and he was ‘conforming’ to their ruling.

President Sarkozy demanded last Thursday that bank directors should suspend the “variable” parts of their annual bonuses for 2008 – ahead of the release of €10.5billion to help the industry.

Over the weekend, the director general and the president of bank BNP announced they would not claim their “variable bonuses” which last year hit €875,000 and €2.27million.

The release of €10.5billion marks the first part of a possible €21billion bailout.
It will benefit the top six banks of France: Crédit Agricole, BNP Paribas, Société Générale, Crédit Mutuel, Caisse d'Epargne and Banque Populaire.

In an interview in Les Echos Economy Minister Christine Lagarde said banks “need to understand that times have changed.”