Deloitte and EY join their Big Four rivals by cutting partners’ pay

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Deloitte and EY join their Big Four rivals by cutting partners’ pay as accountancy industry plunges into crisis

By Daily Mail City & Finance Reporter

Published: | Updated:

Deloitte and EY have joined their Big Four rivals by cutting partners’ pay as the accountancy industry is plunged into crisis. 

As the coronavirus outbreak hammers business, Deloitte said it would reduce the annual earnings of its best-paid staff by a fifth, and delay sharing out its annual profits among partners. 

And EY said it would hold on to 20 per cent of the profits it was due to split between partners. Partners at the Big Four earned an average of £720,000 last year. 

Sign of things to come: EY said it would hold on to 20 per cent of the profits it was due to split between partners

In a blog, Deloitte’s UK chief executive Richard Houston wrote: ‘While the actions I announced have not been taken lightly, I do believe they are the right thing to do so that we can protect jobs and our business. The measures announced align with our commitment that the highest earners in our firm – our partners – should shoulder the greatest proportion of the financial burden.’ 

At EY, UK chairman Steve Varley said: ‘Our business has remained resilient, but we have taken steps to look after our people and reduce and defer costs.’ 

All the Big Four accountants have now modified pay. PwC has delayed rises and is expected to cut partner pay by 20 per cent, while KPMG has told partners they could see a 25 per cent reduction in pay.

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