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October 8, 2018

BDO UK partner pay leapfrogs KPMG counterparts following revenue growth

By Joe Pickard

The average partner at BDO UK was paid £531,000 ($693,730) for FY18, £12,000 more than what the average partner at KPMG was paid in FY17.

Whether or not KPMG will pay their partners more than BDO in FY18 is yet to be revealed, as the Big Four firm releases its annual results in December. However, it is worth noting that KPMG’s partners’ pay fell from £582,000 in FY16 to £519,000 in FY17. KPMG partner pay has been steadily declining since 2014, when it stood at £715,000

BDO’s jump in partner remuneration came as the firm posted revenue growth for the sixth consecutive year, with a growth of 8.5% compared to the previous year to £464.1m.

All three of the firm’s service lines grew; audit by 9.2% to £164.6m, tax by 4.9% to £141.8m, and advisory by 11.1% to £157.7m.

In terms of staff, the firm promoted more than 25% of its UK head count which included 25 partners. 306 trainees were also recruited into the business.

The firm made note of its increase in the use of technology such as robotic process automation to speed up the creation of internal reports and an increase in the use of audit analytics tools.

BDO managing partner Paul Eagland said: “Changes in international trade, technology and world politics are all consuming. It’s vitally important that accountancy firms adapt and help their clients understand, navigate and capitalise on those changes. We’ve been doing that by making focused investments in people and technology and delivering on quality.

“There is a common misconception that accountancy is primarily focused on numbers.  In my experience, our clients buy our people and their expertise. BDO is – and always will be – a business with great people at its core.

“It’s the hard work, knowledge and tenacity of our people that has provided the foundation for these great results. With plans to increase our apprentice intake next year and more partners from competitor firms making enquiries about joining us, the pipeline of talent that is so crucial for growth will continue to flow into the business.”

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