KPMG partner pay down in 2019

Partner pay at ‘Big Four’ accountancy firm KPMG decreased to £640,000 in 2019, compared with £690,000 the previous year.

Chair Bill Michael’s remuneration also decreased to £1.9m during the period, down from £2.1m in 2018.  Despite this, total revenue increased by 3% to £2.40bn and the firm also saw net sales growth in both its audit and tax, pensions and legal services of 10% and 3% respectively.

Michael said it was a time of “extraordinary change and upheaval for our business, our sector, our clients and broader society”. He added it was also “a time of reflection” for the firm on its purpose, how its operates and how it prepares for a “very different future”.

He continued: “Addressing the challenges ahead requires courage, focus and significant  resources. That’s why this year has been one of investment: in our people, our processes, and in the technology we need to deliver new kinds of solutions for clients.

“These investments are reshaping our firm and the way we work.”

In November it was revealed that KPMG would be axing 65 of its UK partners by Christmas, according to a report by the Financial Times.

FT said at the time that the staff layoffs come as the ‘Big Four’ accountant “dramatically scales back its costs” and “restructures its operating model.”

It also comes after KPMG announced in September that it was set to cut close to a third of its administrative assistants, in a bid to cut costs.

According to a report from the Financial Times, between 200-250 staff were set to leave the firm. The firm is set to create 24 new support roles in its Birmingham office, where it runs an administrative function, as part of the restructuring.

A spokesperson for KPMG said at the time: “We are not taking these steps lightly, but we believe the proposed structure will enable us to deliver the best possible experience for our clients. We are now in the process of consulting with affected staff on the plans.”