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Banks Likely to Cut Pay, Staff, Boston Consulting Says

Investment banks, faced with a weak industry outlook, probably will reduce the amount of revenue set aside for pay and should cut 20 percent to 30 percent of managers, according to Boston Consulting Group Inc.

Investment banks also will bring down compensation costs by dismissing flow traders as electronic trading becomes more prevalent, BCG said in a report today. The industry will see little to no growth in the total revenue pool over the next few years, the firm said.