French banking major Societe Generale (SocGen) will ask for shareholder consent to pay some staff bonuses worth up to double their salaries after the European Union imposed caps on variable compensation.
Last year, the EU agreed to cap bonuses to prevent a recurrence of risky behavior blamed for triggering the 2008 financial crisis.
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The new rules say that bankers who meet certain criteria can’t receive bonuses that exceed their annual fixed pay.
SocGen disclosed a EUR299.8 million compensation pool in 2013 for management, traders and employees whose activities have a material impact on the risk profile of the bank.
Reuters quoted the bank’s CEO Frederic Oudea saying that the bonus pool would be down for 2013, after a EUR445.9 million fine over attempted rigging of the Euribor benchmark rate wiped out investment banking profits in the quarter.
However, SocGen is not the only bank to consider this option, its other European rivals like HSBC, Lloyds and Barclays are also planning to offer top staff monthly or quarterly allowances to boost fixed pay.
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By GlobalData
