Société Générale bowed to political and public pressure over executive pay on Sunday as it cancelled a plan to award discounted stock options to four directors, including Daniel Bouton, non-executive chairman, and Frédéric Oudéa, chief executive.

In a letter to be sent to employees on Monday, the bank admits that its plan to award 150,000 options to Mr Oudéa and 70,000 to Mr Bouton had sparked “strong indignation” among the public and “incomprehension” from its own clients and staff.