More than 1,000 partners at PwC’s UK division will be paid £906,000 this year, a slight decrease from last year’s record payout as profits fell despite rising revenues.
According to the company’s unaudited accounts, PwC’s UK profit fell from £1.5 billion to £1.3 billion in 2022, despite a £139 million gain from selling its global mobility business last year.
Revenues increased by 18%, from £4.9 billion to £5.8 billion, excluding the asset sale.
Last year, PwC’s partners celebrated their highest-ever personal rewards, pocketing more than £1m each as their record £920,000 basic pay was topped up by a £100,000 bonus.
The increase was linked to the $2.2 billion (£1.7 billion) sale of a company that provided tax advice to companies relocating employees overseas to US private equity firm Clayton, Dubilier & Rice.
There was no such bonus in 2023, and basic pay for the 1,057 partners fell to £906,000.
PwC’s chair and senior partner, Kevin Ellis, stated that senior partner profits were still ahead of expectations, citing investments in staff and technology, including AI, which had increased costs.
“Against a backdrop of political and economic upheaval, our multidisciplinary business has charted a strong course.
“Considering the sizable investments we’ve made in our people and technology, partner profits beat our forecasts. Our strong performance is due to the adaptability of our business in supporting our clients and is a credit to the talent of our people.”
PwC invested £100 million in new technology while increasing its UK workforce from 24,500 to 26,000.
The company also stated that it had paid approximately half of that workforce an additional £1,500 over five months to assist them in dealing with rising winter energy bills.
The group’s UK results include its Middle Eastern business, which drove a 30% increase in consulting revenue from £1.3 billion to £1.7 billion.
This was down to Gulf countries seeking to “modernise and diversify the region’s economy beyond oil”, PwC said.
Ellis added: “The economy may be sluggish but it is also changing as new technologies and the climate emergency change production and consumption.
“We will continue to invest in skills and technology so we can help our clients and communities adapt. This way we can address the unknowns with confidence – both the challenges and opportunities.”
PwC’s UK division and its partners operate separately from PwC Australia, which is at the centre of a scandal that has cost 12 partners their jobs.
Allegations Surrounding Australian PwC Branch
The Australian branch of one of the “big four” accounting firms is the subject of multiple investigations, including a criminal investigation, after former international tax chief Peter Collins used confidential information and documents obtained through government contracts for the firm’s commercial gain.
As a result of the scandal, twelve partners have been dismissed. PwC accuses some of misusing classified information, while others are accused of failing to fulfill their expected leadership and governance responsibilities.
Source: The Guardian