- PwC UK is introducing a new title, “managing director” (MD).
- While the new MD role might sound appealing to some, it has a significant caveat…It’s not a stepping stone to partnership.
- This move is part of a broader transformation led by Marco Amitrano, Alliance Senior Partner, PwC UK, and the Middle East.
The bigger picture: Amitrano’s overhaul
In 2024 Marco Amitrano was appointed Senior Partner of PwC’s UK and Middle East Alliance. (Before this he was Managing Partner and Head of Clients & Markets at PwC UK.)
The MD grade is part of Marco Amitrano’s broader vision for flexibility in talent retention.
- During an “away day” event, he outlined his strategy to overhaul PwC’s UK business.
- It focuses on creating a standalone technology and artificial intelligence unit to keep PwC at the cutting edge.
- Reorganize service lines to streamline operations and enhance agility in the market.
- This reorganization will affect around 2,700 staff and partners.
Why the MD title?
Shrinking Partner Profits
This year, the average payout to UK partners was £862,000.
Last year, partners received an average of £906,000.
This represents a 5% drop in partner earnings year-over-year.
- PwC UK is facing a challenge: keeping employees happy “without shrinking partner profits“.
- The firm’s profits are shared among partners, so it’s crucial to maintain a balanced payout.
- Some may ask, “Why not just make more people partners?” The answer: Partners earn large paychecks, and promoting too many would reduce each partner’s earnings.
- It helps maintain the firm’s partner profit pool, a key concern as PwC looks to avoid diluting average partner pay.
Amitrano told the Financial Times,
“Our new MD grade will give us more flexibility to recruit and retain key talent. It’s distinct from equity partner and opens up a new career path for high performers.”
Retain Senior Talent
- The new MD title is designed to retain top senior talent who are not likely to make partners.
- External hires who don’t meet all the Partner criteria can still join at a high level with competitive pay.
Also read: PwC China banned for 6 months over Evergrande Audit fiasco!
Closer look at Big 4 UK Partnership structures
PwC’s UK approach sets it apart from other Big 4 firms like Deloitte, EY, and KPMG.
How so? All of the other firms offer a non-equity partner grade – an extended step on the partnership ladder.
Let’s take a look at how the competition stacks up:
- PwC: 1,036 equity partners
- Deloitte: 749 equity partners
- EY: About 900 equity partners
- KPMG: Around 470 equity partners
Also read: EY, PwC, Deloitte surpass 3,300 Partners. EY added 1000+ new Partners
Big 4 India Partner count in 2024
Now let’s look at Big 4’s India counterpart.
EY India
- Equity Partners: 725
- Non-equity Partner: 315
Deloitte
- Equity Partners: 350
- Non-equity Partners: 350
KPMG
- 615, including 120 Partners at their affiliate firm BSR & Co. LLP.
PwC
- Equity Partners: 400
- Non-equity Partners: 125
Wrapping up
This might deter some ambitious professionals in the high-stakes world of the Big 4, where partnership is the ultimate prize.
Source: Financial Times
