PwC made an average profit per partner of £920,000 in the year to the end of June 2022, down from the previous record of £868,000 the previous year and £765,000 in 2019 before the pandemic, according to unaudited figures. Big accountancy firms have enjoyed a boom in recent years thanks to a flood of mergers and acquisitions after the first wave of coronavirus restrictions were eased. PwC partners’ pay rose by an average of £100,000 each from the $2.2bn (£1.83bn) sale of a business that provides tax advice to companies that move staff overseas to the US private equity firm Clayton, Dubilier & Rice. This meant the partner’s average pay for the year broke the £1m barrier. The 950 members of its senior management were informed of their annual pay this week, according to Sky News, which first reported it. There is some doubt whether the barrage of dealmaking can continue in the coming months as investors adjust to rising interest rates and become less willing to finance riskier acquisitions. However, accountants – and their growing advisory branches – also expect a continued explosion in advice on sustainability reporting, which is becoming increasingly common for large businesses due to regulations and investor pressure. The record payouts came despite PwC – like its Big Four rivals Deloitte, EY and KPMG – receiving repeated criticism over standards in its auditing activities. The UK watchdog issued a £5m fine last month for failings in its audit of construction companies Galliford Try and Kier. PwC is also facing investigations by the UK’s Financial Reporting Council into Babcock outsourcing, Wyelands Bank liquidation, collapsed investment firm London Capital and Finance and Eddie Stobart Logistics. So problematic were perceived conflicts of interest between audit and consulting work that EY said in May it was working on plans to spin off its audit arm. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk Kevin Ellis, UK chairman and senior partner at PwC, said in a statement that earnings per partner will fall next year as the firm invests to defend its position. “Our business is in a strong position thanks to the breadth of our services and clients, the skills of our people and the investments we have made,” he said. “It’s been a great year, but we can’t take it for granted. “With economic headwinds facing all businesses, including rising costs and a tight labor market, we need to support with further investment, particularly in people, skills and technology. “These investments are likely to reduce our earnings per partner next year, but given the expected boost to financial performance over the medium to long term, it is right to make these investments now.”
