French President Sarkozy Announces Controls On Bank Bonus

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French President Nicolas Sarkozy said tough rules would be imposed on bonuses paid by banks, which would link such financial rewards to performance.

As such, new rules will defer bonuses over a period of three years and one third of the award will be in shares. If in the following two years their activity loses money, trader will not get this bonus, Sarkozy said on Tuesday after meeting top bankers of the nation in Paris.

French banks agreed to accept new rules on bank bonuses. Sarkozy said compliance of the rules will be closely monitored. He added, "We will not work with banks that do not apply these rules."

Sarkozy said he would press for tough regulations on bonus payments in the next G20 meeting to be held at Pittsburgh in September.

French president Nicolas Sarkozy said tough rules would be imposed on bonuses paid by banks, which would link such financial rewards to performance. (Market News Provided by RTTNews)