Deloitte Revenues up but Partner Pay Slumps
DELOITTE'S REVENUE has increased 7% but profits distributed to partners has substantially fallen, according to its latest annual figures.
Revenues at the Big Four firm increased to £2,098m to 31 May 2011 from £1,953m for the same period last year.All service lines grew, with audit increasing by 4% to £652m, tax increased 5% to £534m, consulting by 13% to £517m and corporate finance by 11% to £395m.
However, profit distributable to partners dropped to £535m from £590m. The firm attributes this to an overall 8% increase in staff headcount including a 4% increase in partners. The firm's profit before tax was £510m, down from £543m.
The average profit earned by each partner in the year ending 31 May 2011, after pensions and annuities to retired partners, was £758,000, compared with £873,000. Deloitte said this decline reflects the increase in partner numbers, although no specific figure is given.
David Sproul, Deloitte chief executive and senior partner, said: "This is a robust performance in challenging and competitive markets. We have placed a clear focus this year on putting the building blocks in place for the future success of our firm. We are investing heavily in our people, graduates, and new partners to broaden and deepen the range of expertise and services we offer our clients.
"We aim to play a key role in the UK's recovery and contribute to further economic growth by working with our clients to help them grow their businesses."
As a partner for the London 2012 Olympics, Deloitte has helped the Organising Committee on about 150 advisory projects, offered in excess of 100 secondments and provided more than 350,000 hours of expert advice on delivering the games.