Big Four boost
Pay rise for KPMG partners despite profits fall
KPMG’s UK partners enjoyed a 4% rise in pay despite profit before tax falling 19% to £364 million from £449m in the previous year and the firm paying out millions of pounds in fines.
The Big Four accountancy group earned fees of £2.96 billion in the year to the end of September, 9% jigher than the £2.72 billion it attracted in the previous 12 months.
With a slowdown in the deals market, the only service line that did not report growth was deal advisory, with fees down 6%.
It attributed the slide to a sharp rise in staff costs, with headcount increasing by 12% year-on-year to 17,200.
Equity partners received an average of £786,000 with an additional £40,000 (gross equivalent) allocated to their capital account.
While this was up on the previous year it was below that of the firm’s Big Four peers. EY rewarded its partners with an average of £761,000 last year, while PwC and Deloitte paid £906,000 and £1.06m, respectively.
During the year KPMG was hit with a number of fines by the Financial Reporting Council for below standard audits. Among them was a record £23m penalty for failures in its auditing of Carillion, the collapsed construction group.
Jon Holt, chief executive and senior partner in the UK, said: “Our people have worked exceptionally hard to deliver strong revenue growth against a challenging economic backdrop.
“I am confident that our long-term strategy is delivering and putting the right foundations in place to transform the business for future, sustainable growth.”