France's two foremost banks are set to slash their yearly staff bonus budgets due to ongoing financial issues in the country.
BNP Paribas and Societe Generale have today (8 May) announced their intention to drastically reduce the additional remuneration packages on offer to their professionals in the future, Reuters reports.
Last week (4 May), BNP Paribas revealed that its total revenue declined by 15.4 per cent in the first quarter of the year in comparison to the corresponding period in 2011.
And according to details released by the financier this morning, BNP Paribas will cut its bonus pool by 52 per cent to €488.7 million ($635 million) moving forward.
Meanwhile, Societe Generale is set to follow suit by implementing a 44 per cent reduction to a level of €410 million.
However, in order to attract and retain the best talent, both banks have also introduced basic wage increases despite their ongoing difficulties.
By Claire Archer