Partners at EY, BDO and Mazars agree to pay cuts

KPMG, PwC and Deloitte disclosed plans to reduce partner pay over Covid-19 crisis

Sources in EY said its partners were taking a cut of at least 20 per cent in their profit distribution this year. Photograph: iStock

Sources in EY said its partners were taking a cut of at least 20 per cent in their profit distribution this year. Photograph: iStock

 

Accounting firms EY, BDO and Mazars have become the latest to implement cuts in remuneration for partners.

Sources in EY said its partners were taking a cut of at least 20 per cent in their profit distribution this year. They added that there were no plans to cut pay of the firm’s staff.

The firm held an “all hands” meeting on April 22nd, with its managing partner, Frank O’Keeffe, advising staff of the cut to partner profit distribution. It is understood the firm is not availing of the Government’s wage subsidy scheme while its graduate recruitment scheme is going ahead.

EY declined to comment.

Elsewhere, Deloitte has confirmed the extent of cuts its partners are taking after being the first to publicly outline its plans two weeks ago. The firm said its partners would take a 30 per cent reduction in their pay.

Deloitte previously told The Irish Times that it would not be availing of the Government’s wage subsidy scheme while its graduate recruitment programme would continue.

Mazars said its partners had agreed to take a cut in earnings of 25 per cent. Its employees will not see any reductions in their pay, the firm’s managing director, Mark Kennedy, said. Mazars did not say whether it would avail of the Government’s wage subsidy scheme but said it had no plans to cancel its graduate recruitment drive this year.

BDO declined to lay out the extent of partner pay cuts, except to say that they would be “immediate and significant”. The firm is availing of the Government’s wage subsidy scheme and said its graduate programme would go ahead.

Grant Thornton declined to signal if partners would take a cut in pay. “We are constantly monitoring the wider economic situation to ensure that the firm and our clients are in the best possible position to get through the Covid-19 crisis,” it said.

It emerged last week that partners at KPMG and PwC have agreed to pay cuts. It is understood that KPMG’s 100 partners have agreed to take a cut of up to 40 per cent in their overall remuneration for a period of 12 months, while PwC’s partners have agreed a temporary 30 per cent reduction to allow the firm see out the slowdown.