plans to cut year-end bonuses in half after more than $20 billion of losses,
reports, citing people with knowledge of the situation.
The average bonus reduction will be about 50% at the New York-based company, and some traders and investment bankers will face steeper cuts, according to
Merrill Lynch agreed to be acquired by
Bank of America
reports Merrill's revenue through September fell 96% from a year earlier, forcing the company to slash compensation, its biggest expense.
The drop in bonuses at Merrill would be less severe than the 70% average cut for all Wall Street firms that compensation consultant Johnson Associates predicted last month. Bonuses make up the bulk of a year's pay for most traders and investment bankers, and they usually fall when markets sour, according to
said last month CEO Lloyd Blankfein and six other top executives at the bank won't be receiving cash or stock bonuses for 2008.
This article was written by a staff member of TheStreet.com.