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JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Bank of America (NYSE:BAC) are considering plans to cut banker bonuses by up to 30%, according to a report by Bloomberg on Friday.
The publication revealed a source with knowledge of the situation told them some on Wall Street are considering giving no reward at all to low performers, although the proposals are still under discussion and could still change.
The moves are under discussion as dealmaking has slumped and sales of new securities have waned this year, with investment banking revenue declining 47% in the first nine months of 2022, Bloomberg said.
They added that, even at Goldman Sachs (NYSE:GS), traders who brought in more money aren’t immune from potential bonus cuts.
Under a year ago, employers were competing strongly for talent, and some firms struggled to maintain adequate staffing. However, that has changed now, with some firms on Wall Street laying off staff, providing leverage to banks when hiring.
