By Mathieu Rosemain
PARIS (Reuters) – BNP Paribas shareholders voted on Tuesday to raise the age limit for the role of CEO, effectively enabling Jean-Laurent Bonnafe to remain at the helm of the euro zone’s largest bank by assets into the start of next decade. Shareholders overwhelmingly approved the BNP resolution, which raises the CEO age limit to 68 from 65, with 98.47% voting in favour.
Under the company’s rules, the board can increase the age limit by one more year, potentially allowing Bonnafe, 63, to remain BNP’s boss until the 2031 shareholder meeting.
Shareholder backing for the move comes at a critical time for BNP, as some investors have raised questions about the future after Bonnafe, with no clear successor in sight.
Bonnafe is already one of the world’s longest-serving CEOs of a global bank. If he remains in place until 2031, he would have spent about 20 years at the helm, similar to JPMorgan’s Jamie Dimon, currently the longest-serving CEO on Wall Street.
Dimon has led JPMorgan since 2006. The bank has begun the search for potential successors, he has said.
BNP Chairman Jean Lemierre told the bank’s annual general meeting that the new age limit was necessary to give Bonnafe and the bank time to continue working on an eventual successor.
BNP shareholders also approved raising the age limit for the chair of the board to 78 from 75, paving the way for Lemierre, 74, to continue running the bank alongside Bonnafe for a few more years.
Lemierre, speaking to shareholders before the vote, described Bonnafe as “young and full of energy,” adding that extending the age limit would allow him to manage the bank, make decisions on succession planning in due course, and have the certainty of an additional term.
Bonnafe has been praised by investors for his risk management, strong client relationships, and a bet on expanding BNP’s investment bank into a bigger player to fill the gap left by European rivals retreating.
But BNP’s shares have trailed peers over the last three years due to lower profitability and investors turning more bullish on prospects for rivals.
The bank’s stock price is up by close to 54% over that period, underperforming smaller French rival Societe Generale, which has rallied 106%, and the European industry benchmark, up more than 130%.
Bonnafe has led BNP through several crises, including the Greek debt crisis and a U.S. sanctions violation that resulted in a $8.9 billion fine. His tenure has also been marked by the sale of BNP’s retail activities in the United States.
(Reporting by Mathieu Rosemain. Editing by Tommy Reggiori Wilkes and Mark Potter)
