PwC says pay for partners falls 10% on coronavirus impact

Big Four audit firm PwC said partner pay fell 10% this year as a result of the impact of the coronavirus pandemic.

The firm said average partner pay fell to £685,000 from £765,000 the previous year.

READ EY partners take home reduced pay packets on Covid-19 impact

Overall profit fell 8% to £938m in the year to 30 June.

Revenue increased 3% to £4.3bn which the firm said reflected “good growth until Covid-19 began to impact the business in March”.

Kevin Ellis, PwC UK’s chairman and senior Partner, said: “For the first eight months of the financial year, we saw good performance across our balanced portfolio of services.

READ Deloitte’s profits drop 16% due to pandemic

“We started to feel the impact of the pandemic in March and saw growth slow significantly by the end of June, impacting the last four months of our financial year and into the current financial year.

“Since September we’ve seen a steady uptick in demand despite the uncertainties of Covid-19 and Brexit.”

EY also announced its financial results on 17 December, with average profit per partner falling 1.7% to £667,000. Distributable profit before tax increased from £477m in 2018-19 to £479m the year ended 3 July.

Revenue grew to £2.6bn, up from £2.45bn the previous year.

In addition, the firm said it would retain 10% of partner profits because of uncertainty stemming from the pandemic. This is a reduction from the 20% of partner profits the firm said it would retain in April.

Deloitte reported in September that its average partner pay had fallen 12% to £731,000 on the impact of Covid-19.

Deloitte said distributable profit was £518m in the year to 31 May, down 16% from £617m in the previous year. Revenue for the year increased 9.1% to £4.31bn, up from £3.95bn.

KPMG said it will announce its financial results in 2021.

To contact the author of this story with feedback or news, email James Booth

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