KPMG UK has announced global revenues of £2,172m (USD$2,905m) for the financial year ending 30 September 2017, up 5% compared to the previous financial year, but average partner remuneration has dropped 11%.
It is the fourth year in a row that KPMG UK partners’ remuneration drops. Since 2014 the partner remuneration has dropped 27% from £715,000 to £519,000.
KPMG UK stated that the decline was due to a decrease of 19.5% in profits as well as a selection of investment write offs which led to members’ profit shares falling from £374m to £301m. The chairman’s pay also dropped from £1.8m last year to £1.4m (of which nine months remuneration went to former chairman Simon Collins).
KPMG UK chairman Bill Michael said: “We took some tough decisions, writing down our stake in a selection of historic investments where performance has not met expectations. While this meant taking a one off hit in our profits this year, it has left us well placed to achieve profitable growth next year and our sales pipeline is strong.”
KPMG UK attributed its growth in revenue to an increase in audit tender which resulted in a 10% growth in audit services. Indeed in the last year KPMG UK won important audit mandates such as BT and Legal and General. The firm has become the top auditor in terms of number of clients in the FTSE250 and FTSE350, although it is second to PwC in terms of audit revenue. Fifty percent of KPMG UK’s revenues are from consulting and advisory services which has also seen increased demand due to regulatory reforms and geopolitical change.
The number of total staff increased 7% to 13,969 but the number of partners was almost unchanged at 623 (615 last year). Michael added that the firm is confident about the strength of the UK economy and that KPMG UK plans to recruit an additional 2,500 in the next months.