KPMG partners expect wages to rise to £746,000 each despite slowing growth and falling profits
KPMG partners earned an average of £746,000 each last year despite slowing growth at the professional services firm.
Payments to its 833 UK partners rose by 4 per cent in the 12 months to the end of September 2023, up from £717,000 the previous year.
In the same period, the accounting giant’s sales jumped 9 per cent to £2.96 billion, a slowdown compared to the 16 per cent growth rate recorded the previous year.
Revenue was hurt by a decline in mergers and acquisitions, despite sales growth in KPMG’s audit, tax, legal and advisory divisions.
KPMG’s profits fell by 19 per cent from £449 million to £364 million, which it blamed on a 17 per cent increase in recruitment costs.
Pay rise: Pay for KPMG’s 833 UK partners rose by 4% in the 12 months to the end of September 2023, compared to £717,000 in the previous year.
KPMG was hit with regulatory fines worth more than £2 million during the year. This was followed in October by a record £21m fine over its accounting work for failed contractor Carillion.
KPMG’s UK partners earned £786,000 on average, but £40,000 was reserved, making the average salary £746,000.
Withheld salaries are distributed upon retirement or at a later date to encourage employee retention, she said.
Salaries rose as the number of UK equity partners – who receive a share of the firm’s profits – fell to the lowest level in more than 20 years, according to the Financial Times. This means a rise in the average per capita wage.
“Our employees have worked exceptionally hard to achieve strong revenue growth,” said President John Holt.
(tags for translation) Daily Mail