Grant Thornton has said that they will be reducing partner draws for the remainder of their current fiscal year. They will reduce partner draws by 25%.
Grant Thornton will also be doing a capital call. This means that they will ask partners to contribute to capital.
This only confirms what we’ve been speaking about here and on our podcast that the largest accounting firms don’t have cash and are struggling with cash collections from their clients.
I think this shows that the big 4 accounting firms and mid tier firms like grant thornton are distributing a majority of their cash to partners instead of preparing for situations like this. Because of this lack of available money, many accounting firms are drastically reducing pay and also laying people off.
Grant Thornton’s CEO said that he does not want to do layoffs though and that is why he is doing this partner pay reduction and capital call instead.
Stay up to date with our big 4 layoff and pay cut tracker.