France Threatens To Curb Executive Pay

Medef chief Laurence Parisot is expected to respond to Sarkozy with a letter of proposals due to be sent Wednesday evening.

"There shouldn't be any more bonuses, distribution of free shares or stock options in companies which get state aid" or who make large job cuts, Sarkozy said in a speech in the northern French town of Saint-Quentin late Tuesday.

Liberation newspaper reported Wednesday that Cheuvreux executives will get bonuses worth euro51 million even as the bank is cutting 75 posts. The bank declined to confirm the amount, but said 2008 bonuses will be paid. Job cuts are on a voluntary basis and concern 31 positions, the bank said.