France curbs stock options for bailout companies

Mon Mar 30, 2009 12:19pm

PARIS, March 30 (Reuters) - French banks and carmakers that
have benefited from government bailouts in the economic crisis
will have to scrap stock option grants until at least the end of
next year, Prime Minister Francois Fillon said on Monday.

The measure will be passed through a special government
decree that comes into effect from Tuesday without the need for
the parliamentary debate that would be needed for standard
legislation.

Fillon said France's six big banks -- Societe Generale
(SOGN.PA), BNP Paribas (BNPP.PA), Credit agricole (CAGR.PA),
Banques populaires, Caisses d'Epargne (CNAT.PA) and Credit
Mutuel -- and its carmakers Renault (RENA.PA) et PSA (PEUP.PA)
would be affected.

"For these companies, extra restrictions beyond those of
common law rules are necessary," he told reporters.

"Their managers will have to do without stock options and
also accept that the variable and exceptional elements in their
pay are strictly regulated," he said.

President Nicolas Sarkozy pledged 10.5 billion euros ($13.89
billion) to help France's banks through the financial crisis and
offered 3 billion euros in loans to Peugeot Citroen and Renault
in exchange for guarantees on jobs.

The measures are being rushed in in the face of a wave of
public anger over management pay that has been fuelled by a
series of cases where fat bonuses were set aside for executives
in companies that rely on support from the

more...http://www.reuters.com/article/managementIssues/idUSLU58332820090330