Big Four

KPMG partners face 25% pay cut amid coronavirus pandemic

Partners of ‘Big Four’ accountancy firm KPMG are facing pay cuts up to 25% due to the coronavirus pandemic, as the firm seeks to “conserve cash.”

Sky News has reported that KPMG’s 620 UK partners were informed earlier this week that they could see a decrease in their 2020 pay packages as a result of the crisis.

Last year, it was reported that the group received an average remuneration of £620,000.

According to Sky News, bosses at KPMG decided that “partners will and should feel a greater impact” as a result – although they also warned that the wider workforce should expect to receive “significantly reduced or no bonuses this year” and said it would be “wise for people to plan for that eventuality”.

Sources also revealed that the UK leadership team have agreed to take pay cuts to save around £75m this year.

However, KPMG said that it did not intend to implement other measures such as part-time working and shorter working weeks.

The news comes as accountancy and law firms across the UK are reportedly considering withholding partner payouts, in order to mitigate some of the financial impact the Covid-19 outbreak is having on the economy.

The Financial Times (FT) reported that companies considering the measure include the ‘Big Four’ accountancy firms Deloitte PwC, EY, alongside mid-tier firms BDO and Mazars.

A senior staff member at EY told FT: “We are already being hit by cash protection measures from our clients, some of which are extending their time to pay invoices. We are reviewing all of our loan facilities, partner capital and cash forecasts to make sure we have the headroom we need.”

Accountancy Today has contacted KPMG for comment.

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