BNP Paribas SA is set to increase bonuses for its investment bankers, particularly benefiting equity trading and debt capital markets following a robust year for these sectors. Sources indicate that the French bank aims to raise total variable compensation in this division by approximately 5%. However, this decision is not yet finalized, and the figures may still be subject to change. A representative from BNP Paribas declined to provide comments on the matter.
This proposed increase is modest compared to the double-digit raises anticipated at major Wall Street firms. For instance, Bank of America Corp. is expected to boost variable compensation by around 10%, while traders at Morgan Stanley and JPMorgan Chase & Co. may see even larger increases. In Germany, Deutsche Bank AG is reportedly planning a similar 10% rise in variable compensation for its investment banking division.
The anticipated bonus increase at BNP Paribas is an average figure, with variations expected across different units. Equity traders and bankers involved in debt issuance have performed exceptionally well over the past year and are likely to see significant benefits. CEO Jean-Laurent Bonnafe has prioritized equities trading in recent years, enhancing the unit by acquiring businesses and client relationships from competitors like Deutsche Bank and Credit Suisse.
While BNP executives have reached a general consensus on the overall bonus pool size, specific individual bonuses will be disclosed at the end of February.