Wall Street banks are weighing plans to slash bonuses this year, Bloomberg Law reported on Friday, as investment banking comes under pressure from choppy markets and a high interest-rate environment.
Citigroup Inc and Bank of America Corp are considering cutting bonus pools by as much as 30%, the report said, citing people with knowledge of the internal deliberations.
JPMorgan Chase and Co, the biggest U.S. bank by assets, is also planning bonus cuts, a source familiar with the matter told Reuters.
Compensation and performance discussions typically begin in December as senior executives give indications about overall bonus pools that will be negotiated and finalized toward year-end.
Investment banks have been hit by a plunge in dealmaking activity this year as torrid markets and aggressive rate hikes by the Federal Reserve have forced lenders to pull back from financing large deals.
Goldman Sachs Group Inc is also planning to shrink the year-end bonuses for traders at its global markets unit by a low double-digit percentage, a separate report from Bloomberg News earlier on Friday said, citing people with knowledge of the discussions.
Citigroup and Bank of America declined to comment on the matter, while JPMorgan and Goldman Sachs did not respond to Reuters requests for comment. (Reporting by Kane Wu in Hong Kong, Anirban Chakroborti and Niket Nishant in Bengaluru; Additional reporting by Manya Saini; Editing by Sriraj Kalluvila and Devika Syamnath)