SocGen slashes CEO bonus
The logo of French bank Societe Generale is seen at the entrance of its headquarters in La Defense, outside Paris, January 30, 2008. The logo of French bank Societe Generale is seen at the entrance of its headquarters in La Defense, outside Paris, January 30, 2008.
Societe Generale has slashed Chief Executive Frederic Oudea's bonus by 43 percent for 2011, a year in which the French bank's shares tumbled 57 percent on funding worries linked to the European debt crisis.
Oudea's bonus slid to 682,770 euros ($909,900) from 1.2 million the year before, SocGen, France's No. 2 lender, said in a regulatory filing.
The bank capped a turbulent 2011 with a grim fourth quarter hit by a writedown on Greek debt and a loss at its investment bank, which struggled with financial markets roiled by the euro zone sovereign debt crisis.
Oudea's compensation for 2012 in cash and stock has been cut by 17.6 percent to 1.32 million euros, the bank said, adding that Oudea and his deputy CEOs would receive no base salary increases.
Several banks in Europe and the United States, under pressure from politicians, shareholders and the public, are cutting back on executive compensation. The CEOs of Morgan Stanley and JPMorgan Chase for instance saw their 2011 pay cut by a quarter and 17 percent respectively.
Larger French rival BNP Paribas said earlier this month that outgoing CEO Baudouin Prot - now its chairman - was hit by a 19 percent drop in his total pay in 2011.
Societe Generale, whose shares have partly bounced back this year after the European Central Bank flooded the region's banks with long-term liquidity, also said Oudea and his deputy CEOs would not receive any cash bonuses.
Instead, their bonuses will be deferred and made up of shares or share equivalents that will vest starting in 2013. - Reuters