We suggested recently that people keep their eye on the compensation-to-revenue ratio at top banks for indications of whether bonuses are really coming down. At JPMorgan (JPM), the ratio indeed seems to be dipping. The bank has announced it has set aside 33 percent of its investment banking revenues for compensation. That's almost half the 2008 figure and below its 44 percent historical average, notes the Financial Times. 

This is an obvious result of the political pressure being placed against top banks. "In this environment, if you don't show discipline on pay, someone is going to do it for you," one insider told the paper. This is a wise move. And we'll likely see the ratio continue to fall--at least on a short-term basis, at Goldman Sachs (GS) and perhaps other banks. One result of this will please shareholders: A lean against lower earnings. The lower compensation helped JPMorgan produce profits that were not as bad as expected for the fourth quarter. 

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