PwC partners receive record £1m payout

PwC’s partners are to receive a record seven-figure payout after its consulting arm posted an “exceptional” year which boosted profits.

The Big Four accounting and consulting giant told its UK partners this week that average partner pay this year would come in at £920,000, up 15pc on the previous 12 months.

The firm’s 950 top executive tier will also share a windfall of around £100,000 each following the sale of its global mobility services business, taking their average annual payout above £1m for the first time.

PwC is boosting pay in a bid to keep hold of workers amid a war for talent. Starting salaries in audit roles at the company will climb by 10pc while graduates in consulting roles will receive over 8pc.

While some companies in the private sector are handing workers one-off payments to help them cope with the cost of living crisis, public sector employees face a battle to receive substantial wage hikes, with many threatening strike action.

The record payout highlights how consulting firms such as PwC benefited from increased demand from both public and private sector demand during the pandemic. However, the pay hike, which was first reported by Sky News, also comes as the Bank of England warns private sector firms against offering raises amid a period of spiralling inflation.

Last month, PwC announced plans to hand thousands of its more junior staff an inflation-matching 9pc pay rise to cushion the blow of soaring living costs.

Half of the firm’s 20,000 UK employees will receive an increase of at least 9pc despite warnings from ministers and officials that pay rises could add fuel to the fire on inflation.

The company said it could not “ignore market pressures” and had to stay competitive to attract talent. It will cost the company £120m and an extra £10m will be spent on bonuses.

Kevin Ellis, PwC’s UK chairman and senior partner, said: “Our business is in a strong place thanks to the breadth of our services and clients, the skills of our people, and the investments we’ve made.

“It has been an exceptional year, but we can’t take this for granted. With economic headwinds facing all businesses including rising costs and the tightness of the labour market, we have to shore up with further investment, particularly in people, skills and technology.

“These investments are likely to reduce our profit per partner next year but given the expected boost to financial performance over the medium to longer term, it’s right that we make these investments now.”