Credit Suisse First Boston would have to cut its annual compensation bill by around $1bn (€1.12bn) a year in order to bring its staff costs into line with other Wall Street investment banks, according to analysts.

The need for massive cuts to its compensation costs are behind the latest round of job cuts at CSFB, which could lead to over 750 bankers, or 20% of the investment banking division, losing their jobs. The lay-offs will be the third significant cutbacks by the firm in less than a year. It fired over 3,000 staff in the wake of its acquisition of Donaldson, Lufkin & Jenrette, and has subsequently trimmed several hundred more as a result of the market downturn.