Save content
Have you found this content useful? Use the button above to save it to your profile.
The front of PwC
istock_PwC_J2R

PwC’s UK partners take home more than £1m

by

PwC’s partners were paid on average over £1m last year, but the Big Four firm also warned that high inflation will likely lead to a pay cut next year.

 

18th Aug 2022
Save content
Have you found this content useful? Use the button above to save it to your profile.

Another year of bumper earnings has meant that UK partners at PwC as owners in the business banked an average of £1,025,000, the firm’s 2022 financial results confirmed on Thursday. 

This pay included the average distributable profit per partner of £920,000, which was up 12% on the previous year. The partners also pocketed an extra £105,000 due to the sale of the firm’s global mobility and immigration business. 

PwC partners’ pay topped £1m for the first time as the firm saw growth across all divisions with the overall revenues for the UK and Middle East surpassing £5bn – profits in the Middle East rose to £1.4bn.  

UK staff salaries also grew, thanks in part to the reinvestment from the other 50% of the UK’s share of the mobility and immigration business. In what PwC called the “biggest investment in UK staff salaries for ten years” 70% of employees received at least a 7% increase to base pay, with 50% getting a rise of 9% or more. PwC said that a further £138m was allocated to UK staff bonuses.

Pay cut likely next year despite high growth

While the partners enjoyed a bumper year of pay, PwC’s chair Kevin Ellis warned that the pressures of high inflation and high wages will likely reduce partner profits next year. “I don’t see the market slowing any time soon, but we can’t be complacent,” he said.

“High inflation and high employment, which haven’t been seen together for a long time, is a combination that will impact all businesses. We’ve invested heavily to put us in the best position to deal with these challenges which will likely reduce partner profits next year as things currently stand.”

That said, the accountancy firm has come off a year of strong growth. The consulting arm of the firm brought in £1.3bn in revenue, which at 33% saw the biggest amount of growth compared to last year. Risk had 13% growth, taking this year’s revenues to £516m. The tax division recorded 9% growth and revenue of £1bn. Audit (£1.13bn) and deals (£906m) both had a 6% growth.  

Ellis put the growth down to preserving jobs through the pandemic which led to “highly engaged teams” when demand recovered at pace and a people engagement score of 80%. 

He also said that more clients were looking to cloud technologies and supporting clients in delivering large and complex programmes. 

“Our business is diverse – demand across all our services has driven our strong performance. This reflects exceptional client demands to challenges and opportunities on multiple fronts. It is a testament to the quality of our people and services and the multi-year investments we have made.”

How does PwC partner pay stack up?

PwC is the first of the Big Four to publish its revenues, with its Big Four cohorts expected to release theirs in the coming weeks. 

It will be interesting to see if the partners from the other Big Four firms will be able to match the £1m pay that PwC partners took home this year. 

So how does PwC’s partner pay stack up against its Big Four competitors? Deloitte was the closest last year to challenge this payout, with the firm reporting in September last year an average payout of £1m. 

In November last year, EY’s partners had the next biggest average pay of £749,000. KPMG partners, meanwhile, had the comparatively smallest payout of £688,000 in February this year. 

PwC partners average pay is up on last year’s results when partners had an average profit per partner of £818,000. 

The Big Four firm also said that it’s taking on more than 2,000 school leavers and graduates and is committed to improving social mobility. This follows the news this week that PwC has scrapped the 2:1 criteria for graduate roles

 

Tags:

Replies (7)

Please login or register to join the discussion.

avatar
By Hugo Fair
19th Aug 2022 00:12

Good to see those regular and 'substantial' fines (and associated legal costs) having such an obvious detrimental impact on the partners' earnings!

If the partnerships won't do the honourable thing, then maybe it's time to introduce a windfall tax (which would be as productive and morally justified as levying it on energy companies).

Thanks (2)
avatar
By Justin Bryant
19th Aug 2022 09:49

It's clearly not nearly enough is it? They need to be properly compensated for all their continuous high quality audit work etc. Give them all a peerage I say!

Thanks (1)
Intercity
By Mr Hankey
19th Aug 2022 10:55

Recently a prominent public figure received millions in cash in a suitcase from a former Qatari prime minister. At least the PWC earnings will have been properly taxed & accounted for, you should go easy on the poor soles for being so honourable.

Thanks (0)
Replying to Mr Hankey:
avatar
By Hugo Fair
19th Aug 2022 11:28

I knew a lot of Soles were employed there ... but hadn't realised it was mandatory to have a forename starting with R.

Thanks (4)
Replying to Hugo Fair:
Intercity
By Mr Hankey
19th Aug 2022 13:35

Hugo Fair wrote:

I knew a lot of Soles were employed there ... but hadn't realised it was mandatory to have a forename starting with R.

LOL!

Thanks (0)
avatar
By Boris69
03rd Nov 2022 07:02

I appreciate the information and advice you have shared. I will try to figure it out for more.
https://www.mymercy.me/

Thanks (0)