KPMG UK's most senior staff collected record pay packets despite slowing revenue growth.
UK partners received an average of £816,000 (about $1 million) for the year to September 30, the firm said in its annual report released Wednesday.
The 9% rise in partner pay comes as KPMG UK's revenues increased by just 1% to almost £3 billion. That compared with 9% and 16% increases in the two previous years.
The firm's tax and legal division grew 9%, and its audit line was up 5%. That growth was offset by a 4% decline in revenues at its advisory business.
KPMG attributed the contraction to the "backdrop of depressed UK and global deals markets."
Major consulting firms are grappling with waning client demand as they adapt to market changes caused by the pandemic and a tough macroeconomic environment.
"This is a good performance in challenging market conditions," said Jon Holt, group chief executive and UK senior partner, in a statement.
The bonus pot for all employees rose by 20% and about 10% of the workforce were promoted, he said.
KPMG UK had focused on managing costs, Holt said. The firm's pre-tax profit rose by 11% to £404 million, reversing a 20% dip the previous year.
KPMG UK and KPMG Switzerland merged on October 1, creating a new $4.4 billion business that is the second largest in KPMG's global network. It has about 17,000 partners and staff.
Slowing revenue growth at the other Big Four professional services firms — EY, Deloitte, and PwC — has hit the pay of their most senior employees. Partners who hold equity stakes in the Big Four firms traditionally receive a share of annual profits.
At EY and PwC, UK partner payouts declined by 5%, while Deloitte UK say a 4.5% drop in pay.
UK partners at KPMG are now the third best-paid among the Big Four, ahead of EY. Its UK partners received an average of $938,000 in the last financial year.
At PwC, partners received an average of $1.07 million, while at Deloitte, the largest Big Four firm by employees and revenue, average partner payouts were $1.2 million in 2024.
Do you work at KPMG or another Big Four firm? How has your pay or bonus changed in the past year? Contact this reporter in confidence at pthompson@bjinnox.com or on Signal at Polly_Thompson.89
