BNP Paribas has cut bonuses in its investment banking unit.
The mentioned decision was made by the financial institution, headquartered in Paris, after a bad year in terms of deal results and in the context of trading-related performance. The lender reduced the total variable compensation in the investment banking unit by about 5%. The relevant information was published by the media with reference to insiders who did not say what the total amount would be.
A representative of BNP Paribas did not respond to a request from journalists for information regarding the reduction of bonuses in the investment banking unit.
It is worth noting that this decision is a kind of continuation of the similar practice of several other European investment financial institutions. This week, Deutsche Bank announced an average cut in bonuses of about 10%.UBS Group and Société Générale also plan to reduce the volume of their total bonus pools for 2023. This was reported by the media.
According to insiders, BNP Paribas initially considered the possibility of a deeper cut in bonuses for the investment banking unit. Over time, the lender abandoned this intention after receiving data that some of the largest players in the United States banking sector kept bonuses mostly unchanged. The relevant information was provided by insiders who used the right of anonymity.
JPMorgan and Citigroup planned to keep variable compensation for traders virtually unchanged from the previous year. This was reported by the media at the end of last year. Goldman Sachs Group and Bank of America sought to increase payouts by at least a few percentage points. This data is insider information.
As we have reported earlier, BNP Paribas and 321founded Present Payment Management Tool.
