Partners at KPMG UK faced a decline in their net pay in 2016. This comes after the KPMG 2016 Revenue release in early December.




KPMG UK saw a rise in revenue from 1.96 billion pounds in 2015 to 2 billion pounds in 2016.

Simon Collins who is head of KPMG UK said his pay went down from 2.2 million pounds to  1.8 million pounds.

Will KPMG UK Partners go broke? Not likely.

Will KPMG UK Partners go broke? Not likely.

If there revenues went up, then why did Mr. Collins have to cut his pay? 

According to him it was because of the cost of investments they are making in the future. 

The expensive investments were partners that were hired externally. They also said that they internally promoted 40 partners. Hiring and promoting all these partners led to a decrease in pay for all KPMG Uk partners. 

KPMG UK also stated that they’ve been able to maintain a 28% share of the FTSE 350 through the new UK tender process. This is the process where public companies in the UK and Europe have to rotate their external auditors. 




KPMG UK is optimistic about their future because of this new audit tender process. This audit tender process is what led to PwC losing their audit of Glaxosmithkline to Deloitte. 




Conclusion

It’s hard to feel bad for partners that go from making many millions to still making many millions, but we’ll keep an eye on the situation to see if KPMG UK faces any more pay increases. Make sure to subscribe to our newsletter to stay up to date on all Big 4 Accounting news.