Here’s the latest on what the country’s big accountancy firms are doing to tackle the affects of the coronavirus crisis.
It seems that one of the options on the table right now is withholding partner payouts. Not a bad idea to start at the top, some might say.
I’m sure there will be lots of other measures under consideration…
Client fees
KPMG, Deloitte, PwC and EY, plus smaller rivals BDO and Mazars, are aiming to hold on to cash as client fees drop off.
“We are already being hit by cash protection measures from our clients, some of which are extending their time to pay invoices” an EY boss tells the FT.
“We are reviewing all of our loan facilities, partner capital and cash forecasts to make sure we have the headroom we need.”
Equity payments
A KPMG source said withholding equity payments to partners was being considered.
“Luckily we are more healthy liquidity-wise than we have traditionally been because of a couple of big divestments recently and saving cash to pay fines,” the person is reported as saying.
Deloitte, where partners amassed £882,000 last year, has offered a voluntary unpaid sabbatical to some of its 16,000 employees.
PwC apparently wouldn’t comment on patrner pay. “We will stay focused on supporting our own people and clients while continuing to prudently manage our own business.”
Big Four partners were paid on average a whopping £720,000 last year.
Make of that what you will…
