The review, which is scheduled to be complete in April, probably will include staff reductions. Firms including Barclays Plc and Credit Suisse Group AG have dismissed staff as revenue from trading stocks and bonds has eroded.
Compensation declines at Bank of America mirror actions by other firms. Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20 percent to 30 percent for 2011, people with knowledge of the move said last week. The firm is also capping immediate cash bonuses at $125,000 as it seeks to defer the pay of senior executives.
Goldman Sachs, JPMorgan
Goldman Sachs Group Inc. reduced compensation and benefits expense 21 percent to $12.2 billion in 2011. That was enough to provide $367,057 to each of its 33,300 employees, down from $430,700 for the 35,700 workers at the end of 2010.
JPMorgan Chase & Co., the biggest and most profitable U.S. bank, reported earlier this month that it lowered pay at its investment bank 9 percent in 2011, enough for an average $341,552 per person. Average compensation is derived by dividing the overall compensation pool by the number of employees, and doesn't represent actual pay for individuals.