Partner rewards outpace staff pay
EY’s UK partners saw average pay rise by 10.5% to £870,000 after the accountancy firm reported record profits, more than twice the increase awarded to its employees. The figures underline how strongly the benefits of a profitable year were concentrated at the top of the business, even as one of its largest divisions remained under pressure.
For the year ending on 3 July, EY recorded £3.86 billion in fee income, an increase of 2%. Distributable profit before tax climbed 3.4% to £702 million. Average profit per partner rose from £787,000 to £870,000. By comparison, average employee pay increased by 5.2%. The firm also said the overall value of bonuses paid to employees grew by more than 25%.
Those figures describe different parts of the workforce’s financial position. For employees, the 5.2% rise represents the change in average pay, while the larger bonus pool means total rewards varied according to individual performance and role. For equity partners, distributions are linked to the profits available to the partnership. The gap between the two rates is therefore central to how the year’s gains were shared.
A smaller equity group boosts the average
EY’s reported average partner figure was also influenced by a reduction in the number of equity partners. The UK equity partnership now contains 774 people, its lowest level in five years. The firm has restricted partner promotions and moved some partners into salaried roles.
A smaller group sharing profits can lift the average distribution, even when total profits grow more slowly. That helps explain why the 10.5% increase in average partner pay was substantially larger than the 3.4% rise in distributable profit. The figure remains below the latest payouts reported by the other three major UK accountancy firms, however.
| Measure | Latest result | Change |
|---|---|---|
| EY fee income | £3.86bn | Up 2% |
| Distributable profit before tax | £702m | Up 3.4% |
| Average profit per partner | £870,000 | Up 10.5% |
| Average employee pay | Not disclosed | Up 5.2% |
Consulting remains the weak point
The headline profit performance masks a continuing problem in consulting. Revenue in the division fell by 3%, extending its decline to a third successive financial year. Growth in other activities offset the weakness: EY-Parthenon, the strategy and transactions practice, increased revenue by 6%, while both tax and assurance grew by 3%.
EY also reported a 46% rise in sales of artificial intelligence and data projects. That points to stronger demand for technology-led transformation work, although the figures do not show how much of the increase came from new projects or from changes in the mix of existing client spending. The contrast between falling conventional consulting revenue and rising AI and data work suggests that clients are still investing, but with demand shifting towards particular capabilities.
Despite the difficult consulting market, EY recruited 2,300 people and announced more than 3,700 internal promotions and progressions. Those moves indicate continued investment in its workforce, although the reduction in the equity partnership shows that career progression has not been uniform across the organisation. Salaried employment and equity ownership now represent different destinations within the firm.
Management points to investment
Anna Anthony, EY’s UK and Ireland regional managing partner, described the results as positive despite the market conditions.
“These are a solid set of results in a challenging market. We’ve continued to grow the business, while making significant investments in talent and technology to support our future growth and deliver high quality and innovative services to our clients.”
The company’s challenge is to turn that investment into durable growth while managing the pressure on consulting. For employees, the immediate result is a 5.2% increase in average pay, a larger bonus value and thousands of promotions. For partners, the much higher average distribution reflects both the firm’s profitability and the smaller pool sharing equity returns.
EY’s average partner payout is below the latest figures from its rivals: PwC reported £935,000, Deloitte approximately £1.13 million and KPMG £880,000. The comparisons show that EY remains within the range of the sector’s major firms, but they also highlight how sharply professional-services rewards can differ from ordinary salary growth. In a business where consulting revenue has fallen for three years, the distribution of profits will remain as important as the overall result.
- Profit: EY’s UK distributable profit before tax rose 3.4% to £702 million.
- Pay: Average partner profit increased 10.5%, compared with a 5.2% rise in average employee pay.
- Workforce: The firm recruited 2,300 people and announced more than 3,700 promotions, while reducing its equity partnership to 774.
