Partners at Deloitte UK will receive an average profit share of £882,000 for the first half of this year, which is the largest payout in 10 years, according to the London-based Financial Times.
The big payday comes despite loud criticism of audit quality by Big 4 firms.
The average equity partner for the past decade has earned a profit share of more than £9m since 2009. The 699 Deloitte equity partners take a portion of profits, typically allocated by seniority and performance, instead of a salary, the newspaper reported.
“Our 2019 results reflect the long-term investment we have been making across our business and, in particular, in audit quality and the training, technology and talent required to support it,” says Richard Houston, chief executive of Deloitte in the UK and North and South Europe. “This investment has helped us succeed in the market and improved the financial performance of our audit business.”
PwC’s UK partners made an average of £712,000 last year, EY partners made £693,000, and KPMG partners made £601,000. Deloitte is the first of the Big 4 to report its 2019 financial results.
The figures may add fuel to the fire of criticism of poor audit quality, anti-competitive behavior and conflicts of interest among the Big 4 firms. The Financial Reporting Council has proposed that the Big 4 split their audit and consulting businesses.
A regulatory inspection this year showed a decline in the quality of Deloitte’s audits for 350 companies in the Financial Times Stock Exchange. The Financial Reporting Council said 75% of its audits required no more than limited improvements, down from 79% in 2018.
