Poor EY partners, ever since Project Everest fell apart they’ve really been struggling.
While we await EY revenue numbers that should drop some time next month, sources inside EY are running to The Times to say partners are being warned of a second year of pay cuts ahead.
Partner pay at EY is set to fall for the second year in a row while senior staff will forgo a pay rise, in a sign that professional services firms are still battling a downturn.
Benoit Laclau, the firm’s managing partner who runs the consulting division for UK and Ireland, told senior managers and directors on a call last week that average partner pay would be down this year, according to EY sources.
But we already knew the partners have been warned, stories about it came out back in April. Prior to the end of EY’s fiscal year on June 30, EY UK & Ireland Managing Partner, Finance and Transformation, Stuart Gregory gave a presentation to the partners letting them know partner profit could drop as much as 15 percent this year. Based on prior year partner payouts, a 15 percent drop would be somewhere in the neighborhood of £646k ($865k USD), putting them only slightly above 2020’s low of £667k.
2023 was the first time EY UK partner profits had taken a hit since all that stuff happened with a certain virus we don’t talk about anymore. Partner pay at EY UK so far for this decade:
- 2024: 💩?
- 2023: £761,000
- 2022: £803,000
- 2021: £749,000
- 2020: £667,000
- 2019: £679,000
Earlier this month it was reported that many service lines at EY UK received pay cuts for raises this year.