Partners at the accounting firm PwC UK have been handed more than £1m each for the first time, after a double-digit rise in revenues across the business.
The firm said on Thursday it had increased average payouts for its 995 top-level employees to £920,000 for the 12 months to June, up 12% from a year earlier, after a jump in profits linked in part to higher income from its consulting services.
Partners received another £105,000 each, on average, after sharing in proceeds linked to the disposal of its mobility and immigration business, which helped multinational businesses manage business travel, immigration issues, tax and salaries.
It helped pushed total pay for each partner past £1m for the first time.
PwC said, overall, the strong results allowed the firm to “make the biggest investment in UK staff salaries for 10 years”, resulting in nearly three-quarters of its employees receiving another 7% in base pay and about half receiving a 9% rise or more. It also handed out another £138m in bonuses for the year, up £10m from 2021.
However, PwC partners have been warned to manage their expectations, with pay expected to fall again next year as higher salaries across the business eat into distributable profits.
“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,” PwC’s UK chairman and senior partner, Kevin Ellis, said.
Ellis added that while he did not expect a significant slowdown in demand for PwC services over the next year, rising prices and a tight labour market could put pressure on clients’ finances.
“We can’t be complacent. High inflation and high employment, which haven’t been seen together for a long time, is a combination that will impact all businesses,” he said.
