Because of slower revenue growth and a rise in partner numbers, EY's UK partners witnessed a 5% decline in payouts this year, with average earnings falling to £723,000. This was attributable to the fact that the number of partners increased.
EY's UK partners faced a 5% reduction in payouts this year, resulting in average earnings declining to £723,000, attributed to sluggish revenue growth and a rise in partner count. The decrease is a consequence of an increase in the number of equity partners distributing the firm's income, with the total reaching 903 at the conclusion of June, an increase from 866 in 2023.
The company's revenue growth significantly decelerated to 3% this year, down from a vigorous 16% last year, while total earnings declined by 1%, totaling £653 million on revenue of £3.7 billion. The two principal business sectors, consulting and strategy and transactions, saw significant impacts from economic conditions, resulting in sales decreases of 4% and 13%, respectively.
“Amidst a year characterized by economic and geopolitical challenges, we have sustained robust performance and persisted in investing in our business and personnel,” stated Hywel Ball, EY’s departing UK managing partner.
Amidst declining corporate deal activity and diminished confidence, Ball underscored that EY has adapted to the industry to sustain a robust foundation for future growth.
Notwithstanding hurdles, EY’s assurance segment, encompassing audit services, emerged as the most robust performer, demonstrating a 10% revenue gain, whereas the tax division recorded a 4% sales boost.
EY's financial performance aligned with that of competitors PwC and Deloitte, both of whom also indicated a deceleration in sales growth due to diminished demand for consulting and deal advising services. EY's UK partners are the third-highest compensated within the Big Four, trailing behind Deloitte partners, who received an average of £1.01 million, and PwC partners, with average earnings of £862,000. KPMG partners, who have not yet disclosed current earnings, had an average compensation of £746,000 last year.
Ball, who has directed the UK firm since 2020 and championed EY’s proposed division of its accounting and consulting sectors, will resign and be succeeded by Anna Anthony, EY’s leader in financial services, in January. Anthony remarked, “We have experienced a favorable commencement to the new fiscal year, with an invigorated deals market significantly enhancing our strategy and transactions services.” We anticipate this momentum will increase as the year advances.