PARIS, March 24 (Reuters) - Credit Agricole, France’s third-biggest listed bank, has awarded its chief executive a 19 percent increase in his bonus to 1.07 million euros ($1.47 million) for 2013 after the lender’s profits recovered.
The bank reported 2013 net income of 2.5 billion euros and proposed its first payout to shareholders since 2010, turning the page on two straight years of losses marked by a painful exit from Greece and a pullout from risky investment-banking activities.
“The achievement of financial goals is above target,” the bank said in its annual report.
“Net banking income and revenues of Credit Agricole SA are on the rise despite the economic context”.
Credit Agricole said it had awarded CEO Jean-Paul Chifflet a 1.07 million-euro bonus, of which 642 million euros would be paid in stock and deferred over three years, 321 million would be in cash and the remaining 107 million would be in cash but indexed to the share price performance up to September 2014.
European banks are under pressure to rein in pay, as regulators and politicians say high bonuses encourage risk-taking and contributed to the financial crisis.
From next year, bankers’ bonuses in the 28-country European Union can be no higher than their salaries or twice that amount if a bank’s shareholders give their approval.
Chifflet’s fixed pay was flat at 900 million euros in 2013.
Chifflet’s four deputy chief officers were awarded 1.820 million euros in total bonuses, representing a 10 to 20 percent increase versus the previous year. The biggest pay rise was given to Michel Mathieu, in charge of the bank’s cost cutting programme.
$1 = 0.7256 Euros Reporting by Maya Nikolaeva; Editing by Mark Potter