Bloomberg reports that BNP Paribas retail banking head Francois Villeroy de Galhau has admitted that any further reduction in bonus payouts is likely to result in staff quitting the bank for rival firms.
de Galhau is said to have acknowledged at a conference in Milan Monday that: 'We are probably at the lowest point of the (pay) bracket where we can be without losing our traders because we are in an international game'.
The bank set aside $4.64bn for corporate & investment banking employee compensation in 2009, with some 27.7% of revenues from the firm's corporate and investment banking unit have been allocated for compensation. The average comp for each person in the division works out at $289,000. The bank is also said to have increased investment banker base pay by 2-3% on average last year.
In the meantime, Reuters reports that The International Brotherhood of Electric Workers has now filed a lawsuit against Goldman Sachs, accusing the firm of overpaying its executives. The lawsuit also seeks to make shareholders, rather than the firm, responsible for allocating charitable donations in the future.
And Bloomberg reports that the UK government is looking to force UK banks to disclosure the names of individuals who earn in excess of $746,000 (£500,000) a year.
The Daily Telegraph reports that UK market regulator The Financial Services Authority is to press UK banks to 'rein in' bonuses this year, and urge that they build up their capital bases instead of over-rewarding employees.
Finally, The Wall Street Journal reports that China has placed restrictions on bonuses paid out to its bank executives and senior managers. Payouts are to be capped at three times base salary, and 40% must be deferred.