Don't miss

Replay


LATEST SHOWS

PERSPECTIVE

'Macron sees high earners as key to getting the French economy moving again'

Read more

IN THE PRESS

'Shut Up and Drive': Saudi's paradoxical stance after female activists arrested

Read more

BUSINESS DAILY

$2.3bn for two million songs: Sony buys majority stake in EMI

Read more

EYE ON AFRICA

Burundi approves new constitution allowing president to extend time in power

Read more

THE DEBATE

Populist takeover: Italy approves unprecedented coalition

Read more

FOCUS

Young Nicaraguans lead protests against President Ortega

Read more

ENCORE!

Music show: Opera singer Lawrence Brownlee, Snow Patrol & Natalie Prass

Read more

TALKING EUROPE

EU Commissioner Johannes Hahn: 'Either we export stability, or we import instability'

Read more

TALKING EUROPE

From Italy to Cyprus via Hungary: A look back at key events in Europe

Read more

Business

Credit Agricole brokerage paid bonuses despite state support

Latest update : 2009-03-25

French banking group Credit Agricole has confirmed that its brokerage subsidiary Cheuvreux, where 31 French staff are being made redundant, paid bonuses for the year 2008 despite receiving state support. The bank plans to lower bonuses for 2009.

REUTERS - French brokerage Cheuvreux drew angry reactions on Wednesday over bonus payments amid a widening row in France and elsewhere about lavish executive pay during the economic downturn.

The Liberation daily said the broker, part of Credit Agricole, which like many of the world's biggest banks is receiving state support to help it through the financial crisis, would make 51 million euros ($68.8 million) in bonus payments to top managers.

The brokerage said the bonus payments were related to the year 2008 during which it made "satisfying" results despite a difficult end to the year.

It said payments for 2009 would probably be much lower.

But coming fresh after outrage over stock options for the top managers at bank Societe Generale and a golden parachute for the executive chairman of carparts maker Valeo, the bonus payments immediately came under fire. The secretary-general of the ruling UMP party, Xavier Bertrand, said he was shocked.

"It is not in their interest to touch these bonuses. Rewarding success is part of the values we need to have, but to reward failure? No way!" he told Europe 1 radio.

Government spokesman Luc Chatel, however, said bonus payments for traders was normal because their pay was structured in two parts, one fixed, the other related to sales.

Similar rows have erupted in the U.S. and Britain, where some banks and other firms at the heart of the global credit crisis have continued to pay bonuses despite being bailed out by taxpayers' cash.

Date created : 2009-03-25

COMMENT(S)