26 Aug 2009

Bank bonus reforms in France

8:00 am on 26 August 2009

French banks have agreed to bring bonus payments for executives more into line with performance.

The banking federation said there would be penalties for those who lost money as well as rewards for success.

The BBC reports the statement came after officials held talks in Paris with President Nicolas Sarkozy after a public outcry against plans by BNP Paribas to pay about €1 billion ($US1.43 billion) in bonuses.

BNP Paribas has reported a 6.6% rise in second quarter profits.

The bank has received more than $US5 billion in state funding.