Another banker’s bonus row has erupted in France.
Investment bank Natixis has confirmed it will pay 70 million euros in bonuses to 3,000 staff in its investment banking unit. That despite large trading losses last year and the fact that it is getting state support. Natixis’s problems forced its key owners Caisse d’Epargne and Banque Populaire to merge: In a sarcastically reaction, Colette Neuville, the head of the small shareholders association, said: “This news will please the two and a half million shareholders who lost all their money after being approached by financial advisers from Caisse d’Epargne and Banque Populaire to invest in Natixis when the share price was 19.55 euros and who have lost everything in this catastrophe.” The Natixis news broke at the same time as a report that BNP Paribas is to stop giving stock options to its senior directors. Bonuses for bankers and executives have caused an outcry in France. The Paris government plans to issue a decree next week banning companies receiving state aid from awarding stock options as happened with another French bank Societe Generale last week.