Johnston Carmichael cuts partners’ pay by 10%

Johnston Carmichael, an independent member of PKF, has reported a 10% cut in the average pay for its partners from £217,000 to £195,000 for the year ended 31 May 2020.

To strengthen its financial position, the firm claimed it took “immediate but proportionate measures” which included reducing its partner drawings by 40% and deferring any distributions. The amount paid out to partners was reduced from £6.8m to £6.7m.

The cut was attributed to the ongoing impact of the pandemic which also saw a marginal decline in the firm’s pre-tax profits which fell to £12.4m from £12.43m.

However the group was still “heartened” by its turnover which rose by 4.3% to £51.4m following growth in various business service lines and audit practice.

Andrew Walker, chief executive, Johnston Carmichael, said: “In these most testing of times, our depth and breadth of skills and knowledge were critical to supporting our clients, including staying abreast of funding options available to supporting those hit the hardest by the pandemic, and rolling out a new service to support clients with their Job Retention Scheme claims.

“While the pandemic has created considerable professional and personal challenges for so many, we have responded by accelerating a number of initiatives in our business to ensure that we are an even more agile, resilient and digital business able to serve our clients more efficiently and effectively.”

He added: “We will continue to invest in our people, adhering to a strong set of core values and ensuring that these drive our behaviour and rewards alike.”