Updated from Thursday, Dec. 18The estimated 4,600 employees from Wachovia's ( WB) investment banking division will see bonuses cut at least 90% this year, according to a manager in the unit. Wachovia investment banking unit employees were told last week their bonuses would drop by 90%, according to the manager. Rolfe "Rik" Kopelan, managing partner with executive recruiting firm Capstone Partnership, says "sources " at Wachovia, who he declined to name, told him on Thursday pay has now been revised even further downward to between 3% and 5% of last year ahead of its planned merger with Wells Fargo ( WFC). "
Goldman's overall compensation expenses for fiscal 2008 were $10.93 billion, cut nearly in half from what it paid out the previous year, the firm said in its fiscal fourth-quarter financial report Tuesday. Morgan Stanley, which canceled its holiday party this year, is cutting its bonus pool by 50%, according to the Financial Times. The firm, which reported earnings on Wednesday, says "beyond sayings from significantly lower compensation in 2008,
the firm has targeted $2 billion in annual cost savings." Also, in an unusual move announced Thursday, Credit Suisse ( CS) executives will see part of their compensation linked to the performance of certain illiquid, distressed assets.