Bank of America Corp. reportedly told its investment bankers to expect compensation packages that average 25% less than last year.  The warning preceded formal 2011 pay discussions scheduled for this week.  The cuts will affect salary and bonus.  A spokesperson for BofA could not comment. “Until things really come back, no one should be expecting compensation like they got in the past,” said a managing director at an executive search firm 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.” Wall Street firms are curbing pay for investment bankers and traders as the companies succumb to revenue and regulatory pressures.  Bank of America CEO Brian Moynihan, 52, is scouring the global banking and markets unit for expenses to cut after a 58% stock plunge last year. Typical Pay. While the company doesn’t break out pay data for its investment bankers, people in the industry with several years of experience may earn from about $500,000 into “the millions,” search executive Branthover said.  BofA's global banking and markets unit had about 12,000 people at the start of 2011, according to a company presentation. The division, run by co-COO Thomas Montag, reported its 2nd straight quarterly loss last week, as the European sovereign-debt crisis roiled markets. The business posted a Q4 loss of $443mn, which followed a $302mn loss in Q3.  For the year, BofA's annual profit plunged to $3bn in 2011, down from $6.3bn in 2010. Fees from investment banking, which includes advising clients on M&A's, as well as managing sales of shares and bonds, fell 35% in Q4 to $1.1bn - reflecting a market challenged by Europe and the fallout from S&P's downgrade of the U.S. credit rating. “Trading was strong in the first part of the year, but with the issues in Europe, the U.S. downgrades, the downgrades of our company and changes in client risk appetite, results were weak in the second half,” Moynihan said last week on a conference call with analysts.  "We need that business to come back or we’ve got to do more in expenses.” Expense Cuts. Moynihan may trim as much as $3bn in annual costs from investment and commercial banking, trading, and wealth- management units in the latest phase of his efficiency plan, dubbed Project New BAC.  That is in addition to the $5 billion targeted from retail and back-office operations, mostly accomplished through eliminating 30,000 jobs. The review, which is scheduled to be complete in April, probably will include staff reductions.  Firms including Barclays Plc and Credit Suisse Group AG have dismissed staff as revenue from trading stocks and bonds has eroded. Compensation declines at Bank of America mirror actions by other firms. Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20% to 30% for 2011, people with knowledge of the move said last week.  The firm also is capping immediate cash bonuses at $125,000 as it seeks to defer the pay of senior executives. Goldman Sachs, JPMorgan. Goldman Sachs Group reduced compensation and benefits expense 21% to $12.2 billion in 2011. That was enough to provide $367,057 to each of its 33,300 employees, down from $430,700 for the 35,700 workers at the end of 2010. JPMorgan Chase, the biggest and most profitable U.S. bank, reported earlier this month that it lowered pay at its investment bank 9 percent in 2011, enough for an average $341,552 per person. Average compensation is derived by dividing the overall compensation pool by the number of employees, and doesn’t represent actual pay for individuals. For further details, go to:  [Bloomberg, 1/24/12]