Average partner salary at PwC in UK falls to £862,000 as revenue growth slows

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PwC’s UK partners earned an average of £862,000 this year, down from the previous 12 months, as revenue growth at the big four accounting firms slowed and rising costs and legal claims dented profits.

Partners at the British firm, which also includes offices in the Middle East, saw their salaries cut by an average of five percent after overall revenue growth slowed to nine percent (down from 16 percent in 2023) amid more difficult economic conditions.

The company’s performance was bolstered by its business in the Middle East, where it saw a 26 percent increase in sales, compared to a rise of just 3 percent in the UK. Total sales for the year were £6.3 billion.

PwC’s UK profit fell 14 percent to £1.1 billion in the 12 months to June after staff costs rose by almost a fifth during the period.

The company also set aside £181 million for legal claims and fines from regulators in the UK and paid out £162 million in cash over the same period.

PwC declined to say what the increase in provisions related to, but a person familiar with the matter said it was related to “the settlement of previous claims,” ​​including litigation and defense costs.

PwC is the first of the Big Four to publish a breakdown of its UK results for the 2024 financial year. Rivals are also expected to report a slowdown in growth as a difficult economic environment prompted companies to cut spending.

Marco Amitrano, the firm’s senior partner for the UK and Middle East, said: “We have delivered growth in a difficult UK market while investing in the technology and skills that will help our clients evolve and improve the way our people work. Core services such as tax and audit have proven particularly resilient.”

The decline in average distributable profits for PwC partners in the UK and Middle East who own and run the firm represents the lowest payout for the firm’s top executives since 2020. However, top earners receive significantly more.

The Big Four – which also include Deloitte, EY and KPMG – struggled with a market slowdown last year after demand rose sharply during and after the pandemic.

Like its competitors, PwC has cut hundreds of jobs over the past 12 months and warned staff over the summer that they would face lower pay rises and bonuses due to “difficult market conditions,” the Financial Times previously reported.

The consulting division was PwC’s best performing during the period, with revenues increasing 18 percent to £2 billion, driven by infrastructure projects in the Middle East.

The company’s audit department reported a 10 percent jump in revenue, while the tax department’s revenue rose 4 percent.

Despite continued subdued merger and acquisition activity, revenues at the firm’s transaction division rose 5 percent as clients sought “forward-looking support.” The risk division reported a slight decline in revenue.

Amitrano, the firm’s former chief consulting officer, took over as senior partner from Kevin Ellis in July.

The succession coincided with leadership changes at PwC’s global, U.S. and Chinese offices, and came at a time when the entire professional services sector is grappling with technological changes driven by the rise of artificial intelligence.

PwC said it invested £100 million in technology, including AI, and “other strategic priorities” in its last financial year.

Amitrano had previously told the FT that technology would be one of his three priorities during his tenure, adding that AI “presents all kinds of opportunities for us and our people, but inevitably it is also something that people are going to feel threatened by.”