Citigroup Inc (C.N) this week cut its bonus pool for fixed-income and equity market traders after market revenues plunged during the last two weeks of the year, according to a person familiar with the matter.
Bonuses will be down about 5 to 10 percent from a year earlier, said the person who was not authorized to speak publicly about the matter. As of mid-December, they had been expected to hold steady with the past year.
The change is the result of declines across the trading businesses in the last half of the month, the person said.
On Dec. 9, Chief Executive Mike Corbat said he expected market revenues to be down about 5 percent from a year earlier.
The change in bonuses was announced internally on Wednesday by Citigroup co-President James Forese to trading executives and was reported on Friday afternoon by the Wall Street Journal.
Bank of America Corp (BAC.N) recently moved to shrink its bonus pool earmarked for investment-banking and securities employees after its own lackluster December, the Wall Street Journal reported, citing people familiar with the matter. (on.wsj.com/1sfpHho)
The extent of the cuts could not be determined, the Journal said.
Bank of America was not immediately available for comment after regular business hours.
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