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Shareholders approve CEO age limit increase to 68

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Bonnafe's tenure could extend to 2031

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BNP shares have underperformed peers, up 54% over three

years

(Adds background on Bonnafe and BNP's stock price performance

in paragraphs 10-13)

By Mathieu Rosemain

PARIS, May 13 (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 ( JPM )

Jamie Dimon, currently the longest-serving CEO on Wall Street.

Dimon has led JPMorgan ( JPM ) 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.