PwC’s partners will receive a record seven-figure sum after the consulting business had an “exceptional” year, boosting earnings.
The Big Four accounting and consulting giant told its UK partners this week that the average partner pay this year would come in at £920,000, up 15 percent from the previous 12 months.
The company’s 950 top executives will also share a windfall of around £100,000 each following the sale of its global mobility services, taking their average annual payout above £1 million for the first time.
PwC raises wages to retain employees amid a war for talent. Starting salaries in audit positions at the company will increase by 10 percent, while graduates in consulting positions will receive more than 8 percent.
While some private sector companies are making one-off payments to employees to help them cope with the cost of living crisis, public sector workers face a struggle to receive substantial pay increases, with many threatening strike actions†
The record payout shows how consultancies like PwC have benefited from increased demand from both the public and private sectors during the pandemic. However, the pay hike, first reported by Sky News, also comes as the Bank of England warns private sector firms against offering hikes at a time of rising inflation.
Last month, PwC announced plans to hand over thousands of its more junior employees an inflation-matching 9pc pay raise to cushion the blow of the rising cost of living.
Half of the company’s 20,000 British employees will receive a raise of at least 9 percent, despite warnings from ministers and officials that wage increases could fuel the inflation fire.
The company said it “couldn’t ignore market pressures” and needed to stay competitive to attract talent. It will cost the company £120 million and an additional £10 million will be spent on bonuses.
Kevin Ellis, PwC’s chairman and senior partner in the UK, said: “Our business is in a strong position thanks to the breadth of our services and customers, the skills of our people and the investments we have made.
“It has been an exceptional year, but we cannot take this for granted. With economic headwinds facing all businesses, including rising costs and labor shortages, we need to make additional investments, particularly in people, skills and technology.
“These investments are likely to reduce our profits per partner next year, but given the expected boost in financial performance in the medium to long term, it is only right that we are making these investments now.”