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KPMG’s UK partners enjoyed their biggest ever payday last year as cost-cutting boosted the Big Four firm’s profits in spite of slowing revenue growth.
Payouts for KPMG’s UK partners climbed 9 per cent to an average of £816,000 for the year to the end of September, the firm said on Wednesday.
The accounting firm reported a 1 per cent rise in revenues for the year to the end of September to £2.99bn, a sharp slowdown on the previous two years, when growth was 9 and 16 per cent respectively.
But profits rebounded by 11 per cent year on year to £404mn, after KPMG took steps “to manage its cost base”. The firm cut 200 roles in June amid a slowdown in demand, and froze pay for about 12,000 UK staff in 2023.
In the same year, the firm also culled its senior ranks, leaving its partnership at its lowest level in more than two decades and boosting individual payouts. KPMG had 833 UK partners in 2023, rising to 837 last year.
The profit jump reversed an almost 20 per cent drop the previous year, and meant the firm’s bonus pot was 20 per cent larger in 2024 for non-partner staff.
KPMG’s profit haul leaves its partners in third place for pay among the Big Four. Partners at PwC and EY both suffered a 5 per cent pay cut in 2024, with average payouts of £862,000 and £723,000 respectively, while partners at Deloitte UK have been handed an average of £1mn a year for the past four years.
KPMG UK’s consulting arm has been affected by a slowdown in demand for advisory services, and reported a 4 per cent decrease in sales. Its tax and legal division grew 9 per cent, fuelled by changes to tax laws, while audit grew 5 per cent.
Jon Holt, chief executive of KPMG UK, said: “This is a good performance in challenging market conditions.”
