Merrill to Slash Year-End Bonuses: Report - TheStreet

Merrill Lynch

(MER)

plans to cut year-end bonuses in half after more than $20 billion of losses,

Bloomberg

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

Bloomberg

.

Merrill Lynch agreed to be acquired by

Bank of America

(BAC) - Get Report

in September.

Bloomberg

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

Bloomberg

.

Goldman Sachs

(GS) - Get Report

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.