KPMG Australia partners and staff get a bargain
After a strong performance in its last fiscal year, KPMG partners and staff are bracing for a much higher bonus than expected – in some cases double the bonus they had previously anticipated.
Despite the impact of the Covid-19 pandemic, KPMG Australia ended its 2020/21 fiscal year (June 2020 to June 2021) on a high note, increasing revenues by 6% to narrowly pass the $ 2 billion mark of income. Australian Managing Director Andrew Yates, who took over as CEO in early July, said the result was a “remarkably strong performance” driven by “a significant recovery in business confidence in the Australian economy”.
The Management Consulting division was the star of the company, with revenue increasing 12.5% to $ 629 million as clients stepped up their use of consultants to help them adapt to the pandemic environment, and more recently, to prepare for the post-Covid -19 world.
“The consulting part of our firm has had a good year. I think it really reflects the increase in trust, over the year, of our clients, especially around the transformation of their business … I also think it reflects their willingness to look longer term , “Yates said.
The Audit, Insurance & Risk Consulting division was the second largest contributor, with $ 590 million, while the Deals, Tax & Legal department generated nearly $ 450 million in revenue despite a slight contraction. The last of its four big companies – Enterprise – grew modestly to $ 243 million.
With revenues rising and costs falling (mainly due to lower project and travel expenses), profits have skyrocketed, KPMG’s 604 partners across the country (of which around 30% are women). ) enjoying a 17% increase in their annual profits. . According to salary data from Glassdoor and AFR, the starting income for a KPMG partner is around $ 300,000, with that figure typically rising to over $ 700,000 for more experienced partners.
On average, KPMG partners pay an income tax rate of 38 percent, which is lower than the average tax rate of 39 percent for Australians earning more than $ 180,000 per year.
Due to the higher profits, the end-of-year bonus pool for staff will be double what was budgeted at the start of the year, Yates confirmed. “Twelve months ago we weren’t sure what was going to happen. The increased bonus is part of the way we share with our people, ”he said.
Staff Advisory Group
Going forward, KPMG also announced the creation of a 16-member advisory group with the aim of improving relationships between partners and the firm’s 8,100 employees. The group will be made up of staff from different functions and levels from across the country, “to make sure I can listen and hear directly from people about how they feel about the business,” Yates explained.
KPMG is one of the four major accounting and consulting firms in the world. Together, the quartet generate revenues of over $ 9 billion in Australia.