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Matthew Gravelle
In-house team
Nationwide
Big 4 Firms
Principal areas of demand
The Big Four accounting firms have two particular areas of demand:
1. The heavy-hitting experienced partner with a strong client following and the ability to move market share.
2.
Senior/mid-ranking partners with excellent technical skills and the
ability to develop clients. Here, the need for a client following isn’t
always necessary.
Sectors in which the Big Four firms are currently making significant investments include:
- M&A and Private Equity;
- Indirect Taxes;
- Financial Services;
- Sub FTSE 300/mid-cap plc client space;
- Private Company;
- Private Client/The International Entrepreneur;
- FTSE 100 outbound;
- Inbound Multi-national;
- HR and Reward/Compensation;
- Professional Partnership.
Remuneration/profit share
Over
the last decade there has been a dramatic change in the way that the
Big Four firms structure themselves, their ‘routes to market’ and the
strength of their global brands. The knock-on effect is a substantial
increase in overall profitability. As the Big Four firms have moved
towards LLP status, general partner earnings figures have become
publicly available; the average being in the £500,000-£700,000 bracket.
The actual range is very wide, with new and junior partners having
profit shares of anything between £250,000 through to £280,000. Senior
management and top-end client services partners will be earning well in
excess of £1,000,000 per year.
Traditional lockstep is no longer practiced within the Big Four. Now, more merit and performance-based structures are in place.
Partners
who are performing well above the norm are able to see their annual
profit share move rapidly – rather than having to creep year-on-year up
a lockstep partnership structure.
Senior partners are no longer
able to cruise during their later years and must be seen to be
continuing to add to the top and bottom line to maintain their earnings.
Notice periods
Typically equity partners will be on 12 months’ notice.
