Bonus expectations managed down at Exane BNP

Recruiters say staff at Exane BNP Paribas are getting hot under the collar at the prospect of receiving smaller than average bonuses.

The French equities joint venture is set to announce bonus levels in the coming days in preparation for payday on February 28, and staff are apparently being primed to expect packages that are rather petite.

"Expectations are being managed down," says one headhunter. "People have been calling us and making enquiries about moving on," he adds.

Warnings of lower bonuses are thought to particularly impact staff hired soon after the joint venture began in 2004. Many were brought in on guarantees, which are ready to expire. A spokeswoman for Exane BNP Paribas declined to comment.

Intimations of low bonuses at Exane BNP Paribas follow a report earlier this week in The Times that bonuses at BNP Paribas itself were poor this year. BNP Paribas did not comment directly, but said it had a remuneration policy designed to attract and retain the highest quality staff. Yesterday, BNP Paribas reported a 16.3% increase in revenues at its corporate and investment banking arm during 2005, driven by strong growth in equities and derivatives trading.

While bonuses at BNP Paribas and its offshoots may be poor, some equities staff at Deutsche Bank are apparently the recipients of a hefty windfall. "The cash equity pool at Deutsche Bank is significantly up on last year," says Mark Horlock, a consultant at Alexander Mann. "But it's not shared by everyone, bonuses have been highly targeted towards top performers," he adds.

The Financial News reported that Deutsche Bank is paying record cash bonuses across the bank after cutting the stock proportion of bonuses to 15%, down from 20% to 25% last year. Average compensation at the German bank was $502,000 (€417,000) for last year, up 21% on 2004.

This article has been amended. Our original story that low bonuses had already been paid at Exane BNP Paribas was incorrect.