La banque d'un monde qui change 2004 - BNP Paribas

General principles governingthe determination of fixedand variable componentsof employee remunerationPay reviews are conducted by all Group companiesthroughout the world according to a standardtimetable, based on a Groupwide performanceassessment system. Performance assessmentsare based on individual objectives and the skillsrequired by the position concerned.Fixed salaries are set on a country-by-countrybasis, taking into account the responsibilitiesinvolved and market rates. In the corporateand investment banking and private bankingbusinesses, bonuses are determined basedon individual performance and the business’sprofitability. In the other business linesand Group functions, management bonusesare determined annually based on profitsand each individual’s personal performance.The variable bonuses of Retail Banking sales staffin France are determined according to criteriathat are adjusted each year based on nationaland local development plans.Stock option plansBNP Paribas generally launches a newshareholder-approved stock option plan each year.No options are granted at a discount to theBNP Paribas share price on the date of grant.Options plans may include certain performancerelatedvesting conditions applicable to allor some of the options granted to each individual.Details of the vesting conditions are provided innote 36 to the consolidated financial statements.On 24 March 2004, the Board of Directorsapproved a stock option plan mainly concerningkey managers within the Group. This plancounted 1,458 beneficiaries who were granted1,779,850 options. The option exercise pricewas set at EUR 49.80, corresponding tothe average of the opening prices quotedfor BNP Paribas shares over the 20 trading dayspreceding 24 March 2004. Specific conditionsapply to a portion of the options granted tocertain individuals, whereby the right to exercisethe options and the exercise price dependon the relative performance of BNP Paribasshares compared with a benchmark index duringa specified period.