Hundreds of partners at KPMG, the big four accountancy firm, will be told next week that their payout surged last year despite a renewed string of scandals and a self-imposed moratorium on tendering for government contracts.
Sky News has learnt that average profit-per-partner at KPMG rebounded to roughly £700,000 in 2021, a rise of nearly a quarter on the previous year’s sum.
The increased payouts to 600 partners will be supplemented by a total bonus pool to be awarded to 15,000 UK employees worth about £100m, according to one senior insider.
KPMG’s stronger financial performance reflects that of the broader accountancy and consulting sector, with rivals such as BDO, the mid-tier firm, reaching a record £760,000 last year.
The increase in profits is being driven by higher revenues in advisory services as well as larger audit fees being charged as a consequence of looming regulatory reforms.
It is expected to be announced during the first half of next week.
One source close to KPMG said that not all of the increase in profit would be paid out to employees and staff, with a significant proportion retained to invest in personnel training and development.
Nevertheless, the surge in partner profits has the potential to be highly contentious, coming just three weeks after KPMG UK’s new chief executive, Jon Holt, acknowledged that “unacceptable” conduct had taken place in the firm in relation to the audit of the collapsed construction giant Carillion.
KPMG and six former employees are being tried by a tribunal brought by the audit watchdog, the Financial Reporting Council (FRC), over their supervision of Carillion’s accounts in the years prior to its liquidation in 2018.
The firm faces a legal claim connected to Carillion’s collapse worth more than £1bn from the Official Receiver in the coming months.
The latest step in that process, the filing of…
Source : skynews
