KPMG UK's Partner Earnings Reach Unprecedented Levels

KPMG UK's leading figures enjoyed remarkable compensation despite a slowdown in revenue growth.

The average payout for KPMG UK partners was approximately £816,000 (or around $1 million) for the fiscal year ending September 30, according to the company’s latest report.

Partner compensation rose by 9%, even though KPMG UK's total revenue increased by a marginal 1% to nearly £3 billion, contrasting with 9% and 16% hikes in the preceding two years.

The company experienced growth within its tax and legal division by 9% while its audit sector expanded by 5%. However, these gains were counterbalanced by a 4% revenue decline in its advisory services.

KPMG pointed to a sluggish UK and global transactions market as the reason for this downturn.

The major consultancy groups are dealing with shrinking demand as they navigate transformations fueled by the ongoing pandemic and tricky economic landscapes.

Jon Holt, the chief executive of the group and senior partner in the UK, remarked that their performance was commendable given the challenging market conditions.

Holt also indicated a 20% increase in the bonus pool for all staff, with approximately 10% of employees receiving promotions.

KPMG UK's strategy to control expenditures contributed to a pre-tax profit rise by 11% to £404 million, overturning a 20% drop from the previous year.

Comparative Performance Among Competitors

Other consulting giants like EY, Deloitte, and PwC faced slower revenue growth, subsequently affecting the compensation of their top-tier personnel. Partners who have equity stakes usually receive part of the yearly profits as payouts.

For EY and PwC, UK partner earnings fell by 5%, while Deloitte UK reported a 4.5% reduction in payouts.

KPMG's UK partners currently rank third in terms of compensation among the Big Four, surpassing EY. Their most recent average earning was about $938,000 in the last fiscal year.

On the other hand, PwC partners averaged a payout of $1.07 million, and Deloitte, the largest among the Big Four concerning employees and revenue, reported an average partner payout of $1.2 million for 2024.