BNP Names Two Lieutenants to CEO Bonnafe in Broad Shakeup

(Bloomberg) -- BNP Paribas promoted investment banking head Yann Gerardin and top retail banker Thierry Laborde, elevating them to co-chief operating officers and making them potential successors to eventually take over from Chief Executive Officer Jean-Laurent Bonnafe.

COO Philippe Bordenave and head of international financial services Jacques d'Estais are stepping down, BNP said Friday, confirming a Bloomberg News report last week. Laborde will take over some of d'Estais responsibilities, adding the bank's international retail banking operations as well as BNP Personal Finance to effectively oversee all retail operations.

The broad shakeup -- which makes Gerardin and Laborde second-in-command -- comes as Bonnafe prepares a new strategic plan after nine years in the role. Along with Frederic Oudea, who is nearing his 13th anniversary at the helm of Societe Generale SA, Bonnafe is one of the longest-standing bank CEOs in Europe, in an industry where the churn in C-suite executives is relatively high.

BNP weathered the onset of the crisis last year better than its French peers, though it signaled an uncertain outlook Friday as it presented mixed fourth-quarter earnings, with disappointing trading results marring a better-than-expected profit. Bonnafe is working to boost revenue at the securities unit and streamline the retail operations as the Covid-19 pandemic accelerates a shift toward online banking and increases pressure on European lenders to consolidate.

Read more: BNP Paribas Warns Fixed Income to Slow After Uneven Results

The reorganization allows the bank to combine all retail banking operations, domestic and foreign, in a move aimed at creating cost savings, streamlining technological investments, and increasing cross-selling, the CEO said in a conference call with reporters.

The bank also promoted Renaud Dumora and Laurent David as deputy chief operating officers. Dumora will run a new unit that includes BNP Paribas Asset Management, its Cardif insurance business and the wealth management and real estate operations. David will be in charge of operational efficiency and will oversee information systems, facilities management, procurement and internal consulting.

Bordenave, the main lieutenant to CEO Bonnafe until now, will become senior executive adviser to the top management, while d'Estais is set to leave at the end of the year. Michel Konczaty, deputy chief operating officer since 2014, will also become an adviser.

“As chief operating officer, Philippe Bordenave has played a preeminent role in the history of our group and in its ability to perform at a high level,” Bonnafe said.

The bank also made several appointments within its executive group committee:

• Charlotte Dennery, also becomes CEO of BNP Paribas Personal Finance
• Elena Goitini, becomes CEO of BNL
• Pauline Leclerc-Glorieux, becomes CEO of BNP Paribas Cardif
• Yannick Jung, head of CIB Global Banking EMEA
• Olivier Osty, head of CIB Global Markets
• Bernard Gavgani, chief information officer
• Lars Machenil, chief financial officer

The appointments mean the executive committee, which was all male as recently as 2011, now includes about 30% women. The bank aims to have 40% women in the committee by 2025.

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