“It’s not a dire scenario, but banks are paring back the excesses from the last years and feel they are moderately overstaffed,” said compensation consultant Alan Johnson, who owns a consultancy that specializes in Wall Street pay…

Compensation was even lower for U.S. investment bankers, whose bonuses shrank about 30% to 50% from 2021 as deals dried up, estimated Johnson. Commercial bankers’ bonuses in the United States fell about 20%, he said.

Traders at U.S. banks bucked the trend, in some cases receiving modest gains in variable pay as trading activity flourished in volatile markets last year.

Banks have mainly been adjusting their staffing levels by not replacing employees who leave, said Johnson.

Reuters / April 5, 2023