Deloitte partner pay falls despite bigger revenues

Deloitte's financial results for the year ended 31 May 2013 show revenues rose by 8% to £2.5bn and profit up at £609m, b ut partners' pay fell 2%.

The increase in revenue was driven by strong performances from the firm's consulting and audit divisions. Consulting grew by 14% to £596m, and audit by 12% to £742m. Revenues from the tax division were up by 6% to £563m, and corporate finance by 1% to £405m.

Deloitte includes its Swiss business division in the annual report - which remained broadly flat at £209m - some 8% of the total. When the Swiss results are stripped out, UK turnover was 9%.

The profit distributable to partners for 2013 was £571m, largely unchanged from £569m in 2012. The average profit earned by each partner in the year, after providing for pensions and annuities payable to retired partners, was £772,000 compared with £789,000 last year.

David Sproul, chief executive and senior partner of Deloitte, said the results demonstrated the benefit of the firm's investment in broadening its expertise, including via the acquisition of the strategic consulting firm, Monitor.

'I believe UK businesses have reached a turning point in terms of confidence and, with substantial cash holdings and improving credit conditions, they've got the firepower to invest for growth. The appetite for risk is increasing and clients are showing greater willingness to invest. This is evidenced by a higher demand for those services that are focused on helping clients grow,' Sproul said.

Last year Deloitte recruited almost 1,700 graduates, school leavers and students and has 1,750 places available this year. The total number of partners in the firm is 1,011 following 48 new partner promotions in June and the recruiting of 22 direct entry partners from competitors and industry over the year.

Deloitte's 2013 Impact Report covering the economic, social and environmental contribution the firm makes to the UK will be published in the autumn.

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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