BNP Paribas CEO, Chairman To Forego Bonuses

The chairman and chief executive of BNP Paribas, France's biggest bank by market capitalisation, are to forego their 2008 bonuses, the company said on Saturday.

The move comes after French President Nicolas Sarkozy put new pressure on the country's banks earlier this week. Sarkozy called on top bankers to suspend bonuses and make "moderate" dividend payments this year due to the global economic slump.

For the 2007 financial year, BNP Paribas Chairman Michel Pebereau received a bonus of 875,000 euros ($1.16 million). Pebereau's total remuneration for 2007 was around 1.61 million euros.

Chief Executive Baudouin Prot got a 2007 bonus of 2.27 million euros and had a total remuneration of 3.32 million.

BNP Paribas, which confirmed a decision that had been previously reported in Le Figaro newspaper, said its top directors had made similar gestures in the past as part of its "responsible reumuneration policy."

This policy includes having no golden parachute deals and led to directors' bonuses falling 24 percent in 2001 after the bank posted an 18 percent fall in profits.

France's top banks have been under pressure from the government following the credit crunch.

The banks say they are continuing to provide credit and loans, but the government says they should do more to lend to businesses and help keep the French economy ticking over in the face of the market slump.