BNP Paribas exec: Further pay cuts will lead to staff exits

10 March 2010

An executive at BNP Paribas has warned that the French bank cannot impose any further pay cuts without seeing the departure of its top-performing traders.

Francois Villeroy de Galhau, head of retail banking at BNP Paribas, stated that the firm paid its bankers three times less in cash last year than the amounts they received prior to the onset of the financial crisis, reports Bloomberg.

He added that if European policymakers imposed tougher regulations on banking pay without similar agreements in the rest of the world, BNP Paribas and other financial institutions based on the continent would be placed at a serious disadvantage.

"We are probably at the lowest point of the bracket where we can be without losing our traders because we are in an international game," Mr de Galhau said.

"Here we need an international answer."

Last month, BNP Paribas posted a $1.89 billion profit for the final three months of 2009 – the fourth consecutive quarter in which it has recorded a surplus figure.

By Asim Shah

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