Big Four results
KPMG boosts pay award despite audit penalty
KPMG’s UK partners each received an average of £757,000 in 2022, a 10% rise on 2021, in a year when the Big Four accountancy firm was penalised for its auditing of Carillion.
Its total wage bill rose by £132 million last year, with general staff sharing a bonus pot of £105 million. On top of the autumn 2021 pay rise, there was an “special overnight flat salary increase of between £2,000 and £4,000.”
KPMG UK said it delivered double digit growth for the second consecutive year, recording a 16% rise in revenue from £2.35bn to £2.72bn, with profit before tax increasing from £436m to £449m for the year to the end of September.
Jon Holt, chief executive, said: “Every area of the business contributed to our growth, showing the important role our multi-disciplinary model plays to support our clients with their most complex issues.”
However, in December 2021 KPMG decided not to bid for public sector contracts. He said that revenue would “undoubtedly” have been higher had it not taken that route.
Income in the consulting division grew by 22% to £811m, the firm’s biggest service line. Tax and legal revenues increased by 13% to £455m, while audit revenues climbed 10% to £634m.
James Kergon, Scotland senior partner at KPMG in the UK, said: “It’s been another strong year of growth for our firm, our people and our clients.”