Bank of America Corp., the second- biggest U.S. lender by assets, told its investment bankers to expect compensation packages that average 25 percent less than last year, said two people with knowledge of the discussions.

Executives gave the guidance this month ahead of formal 2011 pay discussions scheduled for this week, said the people, who declined to be identified because the talks are private. The compensation cut includes salary and bonus, the people said. Jessica Oppenheim, a spokeswoman for the Charlotte, North Carolina-based company, said she couldn’t comment.

“Until things really come back, no one should be expecting compensation like they got in the past,” said Jeanne Branthover, a managing director at Boyden Global Executive Search Ltd. in New York. “There are going to be very strong people who will not be compensated as they expected, and they will keep their ears open to move for more money

http://www.bloomberg.com/news/2012-01-2 ... n-cut.html