KPMG dishes out record pay to partners and £100m bonuses to staff
Partners at KPMG have voted to invest £300m into a “once-in-a-generation” transformation of KPMG’s business, after handing out £100m in bonuses on the back of a “resilient” performance last year.
The professional services firm said it would be handing out £100m in bonuses to its 14,700 staff, as it said KPMG partners were handed their biggest payday since 2014 on receiving an average of £688,000 each.
The payouts come amid fierce competition for white collar talent across the professional services industry.
The firm said it also plans to expand its headcount, and said it may increase the proportion of its staff working outside of London, but said it would be encouraging workers to return to offices for at least two days a week.
Once-in-a-generation
Looking forward, Holt told City A.M that KPMG plans to make a once-in-a-generation £300m investment in transforming its business, with a view to pursuing long term growth.
The Big Four firm said it plans to reinvest funds reaped from the sale of its restructuring and pensions businesses, into digitalising its business and boosting its capabilities in high growth areas, such as ESG advice.
Holt said KPMG plans to invest in its core business, further its digital transformation, and develop its capabilities in future opportunities such as ESG.
Speaking to Morning Wire, Jon Holt CEO of KPMG UK said plans to reinvest come after the firm had had a “resilient performance” in the face of the “challenging backdrop of the pandemic,” after its revenues jumped 10 per cent to £2.35bn and its profits jumped 51 per cent to £426m.
Places and people
Holt said KPMG’s plans to channel a significant proportion of its £300m investment into expanding its headcount, through the recruitment of both partners and colleagues.
“A lot of that investment will go in headcount,” Holt said. “We will expand the headcount over the next three years.”
Holt said KPMG will also “encourage” workers to return to the office, but said the firm plans to take a “flexible” approach going forwards.
“I’m very encouraged that people are returning to the office,” Holt said. “Face to face coaching is an important part of work. We’ll try and encourage them to come in for a couple of days a week, whether that’s a client site or a KPMG site, but we’ll remain flexible as things progress.”
However, Holt said remote working has allowed people to work from anywhere, as he said flexible work could allow KPMG to “increase the percentage of our people outside of London rather than inside London.”
Legacy issues
Holt also said KPMG will continue to address the “legacy issues” facing the scandal ridden firm, as he said that he is “determined” to “learn the lessons” of the past.
“If there are lessons to be learned, then we will learn those lessons,” Holt said.
Holt said KPMG also intends to work with the government, as he said any change needs to be made with “all players in the market”.
The comments come after KPMG last month paid the Malaysian government $80m (£59m), after also paying the an out-of-court settlement with the FRC over the handling of the Carillion audit.