2007 REGISTRATION DOCUMENT

CONSOLIDATED FINANCIAL STATEMENTS5Notes to the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >Within the scope of its International Retail banking and Financial Services business, the Group also carries out trading transactions with relatedparties involving derivatives (swaps, options and forwards) and financial instruments (equities, bonds etc.). These transactions are carried out on anarm’s length basis.➤RELATED-PARTY PROFIT AND LOSS ITEMSIn millions of eurosConsolidatedentities underthe proportionatemethodYear to 31 Dec 2007 Year to 31 Dec 2006ConsolidatedConsolidated entities under Consolidatedentities under the the proportionate entities under theequity methodmethod equity methodInterest income 236 40 115 43Interest expense (2) (24) (1) (1)Commission income 22 21 3 21Commission expense (6) (53) (26) (38)Services provided 2 117 1 29Services received - (308) - (255)Lease income 2 - 2 -TOTAL 254 (207) 94 (201)12348.d.2Entities managing post-employmentbenefit plans offered to GroupemployeesThe main post-employment benefits of the BNP Paribas Group areretirement bonus plans, and top-up defined-benefit and definedcontributionpension plans.In France, some of these benefits are paid by the BNP and Paribas pensionfunds (Caisses de retraite) and the BNP welfare benefit fund (Caisse dePrévoyance). As from 1 January 2006, the obligations concerning pensionbenefits paid by the BNP pension fund have been assumed in full byBNP Paribas SA. The BNP pension fund was liquidated in the first halfof 2007. Furthermore, over the six months to 30 June 2007, all of thepension benefits provided by the Paribas pension fund as well as theprovisions for retirement bonuses existing within the BNP welfare benefitfund were transferred to an external insurance company.In other countries, post-employment benefit plans are generally managedby independent fund managers or independent insurance companies,and occasionally by Group companies (in particular BNP Paribas AssetManagement, BNP Paribas Assurance, Bank of the West and FirstHawaiian Bank). In Switzerland, a dedicated foundation manages benefitplans for BNP Paribas Switzerland’s employees.At 31 December 2006, the value of plan assets managed by Groupcompanies was EUR 991 million (EUR 1,174 million at 31 December2006). Amounts received relating to services provided by Group companiesin the year to 31 December 2007 totalled EUR 1.1 million, and mainlycomprised management and custody fees (2006: EUR 1.4 million).At 31 December 2007, the BNP and Paribas pension funds and theBNP welfare benefit fund showed a credit balance of EUR 44,040in the Group’s accounting books (compared with a credit balance ofEUR 216,767 at 31 December 2006).8.d.3Relations with key managementpersonnelRemuneration and benefits awarded to the Group’scorporate officersRemuneration and benefits policy relating to the Group’scorporate officersRemuneration paid to the Group’s corporate officers■ The remuneration paid to the Group’s corporate officers is determinedby the method recommended by the Compensation Committee andapproved by the Board of Directors.■ This remuneration comprises both a fixed and a variable component,the levels of which are determined using market benchmarksestablished by firms specialised in surveys of executive remunerationin the European banking sector.■ The variable component is determined by reference to a basic bonuswhich is calculated as a proportion of the officer’s fixed remunerationand varies in line with Group performance criteria as well as theattainment of personal objectives.■ Group performance criteria account for 70% of the basic bonus andcomprise parameters including earnings per share, core businesspre-tax net income, and the fulfilment of gross operating incometargets at consolidated and core business level.■ Personnel objective-based criteria concern managerial performanceas assessed by the Board of Directors. The Board’s assessment is madein view of the foresight, decision-making and leadership skills shownby the officer in implementing the Group’s strategy and preparingits future. These criteria are clearly defined and account for 30% ofthe basic bonus.■ The variable component of corporate officers’ remuneration is cappedat a level set in proportion to the basic remuneration, and since 2005has been paid in full during the following year.■ The Chairman of the Board of Directors, the Chief Executive Officerand the Chief Operating Officers do not receive any remunerationfrom Group companies except BNP Paribas SA.5678910112007 Registration document - BNP PARIBAS 211