KPMG partners see pay rise to £746,000 each despite slowing growth and falling profits

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KPMG partners received an average of £746,000 each last year despite a slowdown in the professional services firm’s growth.

Payments to its 833 UK partners rose 4% in the 12 months to the end of September 2023, compared to £717,000 a year earlier.

During the same period, sales at the accounting giant jumped 9 per cent to £2.96 billion – a slowdown from the 16 per cent growth rate recorded the previous year.

Revenue was hurt by a decline in mergers and acquisitions, although sales in KPMG’s audit, tax and legal and consulting departments increased.

KPMG’s profits fell 19 per cent from £449 million to £364 million, blamed on a 17 per cent rise in staff costs.

Pay rises: Compensation paid to KPMG's 833 UK partners increased by 4% in the 12 months to the end of September 2023, up from £717,000 a year earlier.

Pay rises: Compensation paid to KPMG’s 833 UK partners increased by 4% in the 12 months to the end of September 2023, up from £717,000 a year earlier.

KPMG was hit with regulatory fines worth more than £2 million during the year. These were followed in October by a record £21 million penalty for his accounting work for failed contractor Carillion.

KPMG’s UK partners received an average of £786,000, but £40,000 was withheld, bringing the average take-home pay to £746,000.

Salary arrears are paid upon retirement or at a later date to encourage staff retention, it says.

Salaries have risen as the number of UK partners – who share in the firm’s profits – has fallen to its lowest level in more than 20 years, according to the Financial Times. This means that the average individual salary has increased.

Boss Jon Holt said: “Our people have worked exceptionally hard to deliver strong revenue growth. »



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