Revenue in trading divisions has fallen by an average of 12% so far this year. Goldman Sachs (GS), which makes most of its money from trading, saw average compensation drop 26% in the first nine months of this year.
New regulations and public scrutiny mean that the days of huge trader bonuses may be gone for good.
In the world's top eight banks, average pay per employee has dropped by 0. 8%. For banks that focus on trading, it has dropped 11%. Bond traders could see their compensation fall as much as 30% this year, according to consultants Johnson Associates.
"There's been a drop-off in activity -- predominantly around client volumes and related trading flows -- that has impacted the revenues," said John Lee, a New York-based partner at recruitment firm Heidrick & Struggles International Inc.