The FT reported this morning that:
KPMG's UK partners suffered an 11 per cent average pay reduction this year and earned significantly less than rivals at Deloitte, PwC and EY as their firm's profits fell sharply. Average pay per partner at the Big Four accounting firm was £519,000 in the year to September 30.
The biggest earners were at Deloitte this year, with average pay per partner of £865,000. EY partners received £677,000, while PwC's partners earned £652,000.
KPMG said several investment write-offs and other one-off charges meant UK profits before tax fell by almost a fifth to £301m.
But what I found most interesting was this observation:
The amount of money the firm put aside for potential fines and legal costs in the latest financial year almost doubled to £56m and accounted for more than a third of the decline in profits.
That, in my estimation, is more than £96,000 each. That's rather more than what I call a 'margin for error'.
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Average pay £519k? Can you please write more about what we can do to restrict these people’s exploiting tendencies?
We could set corporation tax , capital gains tax, and inheritance tax at the level which minimises revenue for the Big 4 accounting firms. Then they’d have to cut their charges, and a good few would have to clear off and get jobs teaching maths or whatever skills they can turn their brains to.
Why appease them?
Just spend more at HMRC
Putting people out of work whom you don’t like but who are not breaking the law is ‘appeasement’?
And can be fixed by allocating human resources to HMRC to ensure the laws which make the big 4 riches possible get applied?
Applying the spirit of the law is perfectly acceptable
Abusing it is unacceptable
If they make their living in an abusive way why should we affro9d them sympathy?
And why not make sure that the spirit of the law is enforced? You have a problem with that? Why?
Over the years I have been ripped off by the “professions” general incompetence notably accountants and lawyers . Nice to see some are “suffering” although I would gladly suffer those rates of pay .
I have to say looking at the rates of pay at Keeping Profits Moving Globally (KPMG) I do not see anyone suffering really.
All I see is a bunch of dodgy geezers being paid to be dodgy.
I will not be satisfied until I see the Big 4 go the way of Arthur Andersen to be honest.
Or Keep Paying the Money Guys as one of their clients used to call them.
A monopolistic cartel, long overdue for challenge