Bonus Watch ’24: It’s Going to Be a Stingy Summer at the King’s PwC

Remember how last month PwC UK made some cuts but wanted to keep them under wraps and told the staff they were letting go not to say “I got let go” in any departing emails to colleagues? Let’s catch you up on that quick.

In guidance sent to affected employees, reviewed by the FT, PwC said: “Should you decide to accept this voluntary offer, it is possible for you to send out a note to a defined group, however this must not refer to the voluntary severance offer or the circumstances of leaving (suggested wording for this note is given below but we recognise that you will naturally want to personalise this).”

“Naturally, it must also not be derogatory to PwC or its employees/partners. It is down to business discretion as to when this message can be sent out and if the business wishes to review messages before they are sent out.”

The guidance continues: “The content of your comms should follow this approach . . . ‘Following recent discussions with my [relationship leader], I have taken the decision to leave PwC. It hasn’t been an easy decision for me to reach but now that I have, I am excited about what the future holds for me and the new opportunities on the horizon. I have really enjoyed my time at PwC and the opportunity to work with such talented colleagues.’”

“PwC asks for silence from departing staff in programme of UK job cuts,” Financial Times, June 7 2024

Well guess the cat’s out of the bag about how bad things are at the King’s PwC because FT just published this:

PwC has warned its 26,000 UK staff that it will pay lower bonuses in some divisions, hand out smaller salary increases and curb a practice of half-day Fridays as the Big Four firm battles “challenging market conditions”.

Ian Elliott, chief people officer, wrote in a memo that “our bonus pool will be similar to last year” but “a number of areas” would see “reductions in average bonus per head”, while some would also see lower pay rises.

NOT HALF-DAY FRIDAYS. You absolute demons. Oh and about the bonus pool last year: Already Underpaid PwC UKers Get Told Bonuses Will Suck This Year

Apparently at least one senior partner thinks reduced summer hours are “disruptive to a client-facing business” and FT says some partners expected the firm’s new leadership — as in PwC UK Senior Partner Marco Amitrano and his new management board who were handed the keys on July 1 — to ditch this perk faster than you can say why are you showing as Away on Teams? “Given market conditions, it’s especially important that we carefully balance [summer working hours] with the needs of our clients, teams and work commitments, which should continue to take priority,” said Mr. Elliott in another memo, according to FT’s reporting. Have you guys figured out yet that they want you to quit? Seems patently obvious at this point.

When PwC UK announced financial results for fiscal ’23 last August, they said they had “strong, stable growth backed by investment in people and technology.” Of their 16% growth in fiscal 2023 (up from 12 percent in 2022) and revenue of £5.8 billion ($7.5 billion USD), then-PwC UK Senior Partner Kevin Ellis said “Considering the sizable investments we’ve made in our people and technology, partner profits beat our forecasts. Our strong performance is due to the adaptability of our business in supporting our clients and is a credit to the talent of our people.” A few months later, they asked 500-600 people to leave voluntarily or they’d be fired. Erm, let go.

Partner pay for 2022 broke records at £1 million, up quite a bit from £868,000 the prior year and a lot up from 2019’s payout of £765,000. Alas, poor PwC UK partners took home a paltry £906,000 ($1.2 million USD) in FY23.

Although the line continues to be “demand for consulting services is way down,” PwC UK consolidated group revenues, which includes PwC UK, Channel Islands and Middle East firms, for consulting alone hit 30 percent growth in FY23, down slightly from FY22’s 33 percent. “This was driven by demand in the Middle East, as clients invest in programs to modernize and diversify the region’s economy beyond oil. Energy diversification and sustainability are also behind many UK transformation projects, as the climate crisis and new reporting requirements galvanize businesses to move towards net zero,” said PwC. The next revenue announcement should appear in the next month or so, who wants to bet they’ve swapped out sustainability for generative AI? You know they will.

There’s a ton more in the FT article, go read it. At least inflation in the UK isn’t burning hot at 11 percent anymore or a 3 percent raise would really be a pay cut. Let’s be real, it still is for anyone who needs to eat food or rent a flat.