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Drinks are on Connolly
So the Deloittee annual report is out and we learn that chairman John Connolly earned a whopping £5.7m.
Despite running the second largest firm in the country he must be the highest paid accountant in the country in practice. I venture to suggest, and I do not have proof at my finger tips, that he must be the highest paid practice accountant ever.
It's astonishing. More impressive is that the average pay for more than 650 partners is £970,000. It's arguable that Deloitte might just be employing an historic number of millionaire partners.
Given that figure, and the fact that Deloitte turns over £2.01bn in the UK (beating this year's self imposed £2bn target), I bet there aren't too many within the firm that begrudge him that pay packet.
Still, it's interesting to note that if he were in a public company, there might well be taunts of fat cat pay. As it is Connolly only has to satisfy the other owners of the business. His partners. Wonder if they ever consider complaining about his remuneration?
Of course, there's another way to see this. Connolly needs a pay day commensurate with his belief that his firm has overhauled its rival in terms of reputation. His wage slip has certainly overtaken everyone else's.
He is hardly a practice accountant but a corporate man in a large corporation. If he was employed by a FTSE PLC 12.8% Employers NIC would be payable on his earnings (as well as the 650 other "millionaire" partners).
Why should Deloitte and the other big four be subsidized compared to corporate competitors(eg not paying employers' NIC)?
Posted by :Mark Edmond | August 18, 2008 10:43 PM
Well, there's a debate there to be had about what benefits should be given to those running partnerships.
Of course, the argument is that partners assume much higher risks and put their own personal capital into the business. Therefore certain benefits should accrue.
Incidentally, I think it would be a little unfair to suggest the 650 partners are all millionaires. I used an average, which means some will be earning well below that.
Having said that over time they may well develop millionaire income or bank balances.
I will check out employer's NICs. That's an interesting issue.
tell me though, in your view, has Deloitte's reputation outstripped its competitors?
Posted by :Gavin Hinks | August 19, 2008 8:13 AM