Deloitte UK partners are set to take a 17% pay cut despite the group’s revenues rising by almost a tenth.
According to the Financial Times, the salary reduction is due to the fact the firm was “unable to cut costs fast enough in response to coronavirus disruption”.
It comes as Deloitte reported “strong growth” across all of its business divisions in the 10 months to the end of March, with revenue growth close to 11%.
In addition, Deloitte reported revenue of £4.31bn for the year ended 31 May 2020, up 9.1% from £3.95bn in 2019.
Revenues in April and May were “significantly impacted’ by the pandemic, however, with growth dropping to around 2%.
Distributable profit for the year ended 31 May 2020 was £518m, down 16% from £617m the year before.
Donna Ward, CFO, said: “As a consequence of the pandemic, the firm’s growth has been less than planned. We have carefully managed our resources throughout this period, implementing cost containment and liquidity enhancement measures so as to ensure the long term resilience of our firm.
“We continue our focus on operational and financial resilience whilst also making considered, but strategic investment choices.”
Alongside news of the pay cuts, Deloitte said it is continuing to track and monitor its pay gap.
This year’s headline figures on gender pay gap improved slightly between FY19 and FY20, according to the group, with the total earnings gender gap falling from 39.3% to 34.8%.
Deloitte also voluntarily reported on its ethnicity pay gap in FY20, with the total earnings ethnicity pay gap falling by 3.4% to 40.1% compared with FY19.
Deputy CEO Dimple Agarwal said: “Both our gender and ethnicity pay gaps are a result of us having low female and ethnic minority (including Black) representation at senior grades, so we are working towards addressing this imbalance with a focus on recruitment, promotion and culture change.
“We continue to drive our culture of inclusion through training and listening to our people. In addition to gender and ethnicity, in the UK we have and will continue to work hard with our networks, allies and partners to achieve all dimensions of inclusion.”
He added: “This includes supporting social mobility, neurodiversity and the LGBTQ+ community. I look forward to sharing more detailed information as part of our Inclusion Report, which will be published early next year.”