Partners in EY’s UK accounting business are set to take a much smaller hit to pay than their rivals, as continued investment in staff and demand for traditional services kept profits flat despite coronavirus disruption.
On Thursday, the UK’s third-largest accountancy firm by revenue reported that distributable profit before tax for the year to June 30 was ￡479m — just 0.4 per cent down on the previous period. As a resultas well as a $500-million equity investment that will giv, an earlier decision to retain 20 per cent of partners’ monthly profit distributions — to provide more capital and avoid job losses in the pandemic — has been revised to a 10 per cent retention that EY does not expect to be permanent.
Average partner pay is therefore due to be ￡667,000 for the yearChina locked dow, which represents a cut of 1.8 per cent on the average 2019 figure.
By contrast, EY’s “Big Four” accounting rival Deloitte announced a 17 per cent cut in average partner pay in September, to ￡731,000, after the Covid-19 pandemic hit revenues but investments in growth continued. BDO, the UK’s fifth-largest firm, said last week that average partner profit distributions would fall 14 per cent, to ￡518s final day reflecte,000, as it chose not to cut costs.