KPMG partners see pay rise to £746,000 each despite slowdown in growth

KPMG partners were paid an average of £746,000 each last year despite a slowdown in growth at the professional services firm.

Payouts for its 833 UK partners rose 4 per cent in the 12 months to the end of September 2023, up from £717,000 a year earlier.

In the same period, the accountancy giant’s sales jumped 9 per cent to £2.96billion – a slowdown compared to the 16pc growth rate recorded the year before.

Revenue was hit by a slump in merger and acquisition deals, although sales in KPMG’s audit, tax and legal, and consulting departments grew. 

KPMG profits slumped 19 per cent from £449million to £364million, which it blamed on a 17 per cent increase in staffing costs.

KPMG was hit by regulatory fines worth more than £2million during the year. Those were followed in October by a record penalty of £21million over its accounting work for failed contractor Carillion. 

KPMG’s UK partners were paid £786,000 on average, but £40,000 was held back, making the average take home salary £746,000. 

Held back pay is handed out at retirement or a later date to encourage staff retention, it said.

Salaries were pushed up as the number of UK equity partners – who take a share of the firm’s profits – fell to the lowest level in more than 20 years, according to the Financial Times. That meant average individual pay rose.

Boss Jon Holt said: ‘Our people have worked exceptionally hard to deliver strong revenue growth.’