Don't miss

Replay


LATEST SHOWS

FRANCE IN FOCUS

Organic farming in France: Green is the new black

Read more

EYE ON AFRICA

Nigeria : Suicide bombers die in failed attack with suspected Boko Haram links

Read more

MEDIAWATCH

Turning On Trump?

Read more

THE WORLD THIS WEEK

The World According to Trump (part 1)

Read more

THE WORLD THIS WEEK

Kim Jong-Un, François Fillon, French Police Brutality (part 2)

Read more

PEOPLE & PROFIT

Europe market jitters: Political risks give investors cause for concern

Read more

FOCUS

A closer look at former Colombian president Uribe's murky past

Read more

FASHION

Haute Coiffure: When hairdressing becomes a work of art

Read more

#TECH 24

The startup space race

Read more

Business France

Banks agree to cap trader bonuses

Latest update : 2009-02-07

Some of France's largest banks have reached an agreement with the financial market reculator, the banking comminssion and the treasury office on ways to rein in bonuses.

REUTERS - France's financial authorities have drawn up new guidelines governing the bonuses and salary structures of traders to curb excessive payouts and overly-risky conduct, newspaper Le Monde said.

Some of the country's largest banks had reached agreement with financial market regulator Autorite des Marches Financiers (AMF), the Banking Commission and the treasury office on ways to rein in bonuses, it said in its Sunday/Monday edition.

According to a document obtained by Le Monde, the new code of conduct, to be submitted to Economy Minister Christine Lagarde in the coming days, would apply from this year but affect traders' bonuses from the beginning of 2010.

"It aims to moderate the weight of the variable portion of pay compared with the salary so that this does not encourage unreasonable risk taking," Le Monde said.

The government had forced banks to review bonus structures as part of the conditions it set for helping to shore up balance sheets in the face of the world's worst financial crisis in decades.

Date created : 2009-02-07

COMMENT(S)