Deloitte’s UK 709 equity partners will experience a 17% pay cut following a decline in the organisation’s financial growth during the Covid-19 (Coronavirus) pandemic.
For the year ending May 2020, Deloitte’s UK equity partners will receive an average payment of £731,000. This is down from £882,000 for the previous financial year. Equity partners take a share of an organisation’s profits rather than a salary.
In May, Deloitte introduced pension contribution reductions for all of its UK employees for a period of 12 months, including partners who do not currently hold equity. Staff who received contributions of up to 12.5%, have seen their contributions reduced to 4.5% of their core salary.
Donna Ward, chief financial officer at Deloitte UK, said: “As a consequence of the pandemic, the firm’s growth has been less than planned. We have carefully managed our resources throughout this period, implementing cost containment and liquidity enhancement measures so as to ensure the long–term resilience of our firm. We continue our focus on operational and financial resilience, while also making considered, but strategic investment choices.”
Richard Houston, chief executive officer at Deloitte UK, added: “Our own resilience has also been high on the agenda. We took a number of actions early in the crisis to help create certainty and ensure our firm’s long-term stability, such as deferring capital expenditure, suspending equity partner profit distributions and reducing and deferring, promotions, salary increases and bonuses. I’m grateful and proud of how our partners and people have responded to these difficult decisions, and for supporting each other and the firm throughout the pandemic.”