Frances Ball 16 Sep 2019 12:48pm

KPMG rewards turnaround team 25% pay rise

Senior partners in KPMG’s restructuring division have been handed a 25% pay rise, according to The Times

Keeping the division’s senior partners on side is crucial for the firm. Low consumer confidence and the possibility of corporate collapse as a result of Brexit’s grip on the markets could mean that the restructuring department is kept busy in months to come.

The restructuring arm of the firm, which has around 20 partners, generated around 5% of the firm’s UK revenues last year.

It has dealt with some high-profile corporate failures, and with the overhaul of household names Debenhams, Mothercare, and Paperchase.

KPMG has been reluctant to split its business, along the lines of recommendations made by the Competition and Markets Authority (CMA) in April.

The firm has created a new audit executive committee, responsible for audit performance and risk management, rather than splitting its audit business as PwC has said it will do.

The CMA’s proposed overhaul of audit in the UK was prompted in part by a string of high profile failures at large companies, including at KPMG’s client Carillion.

The firm has 603 partners, who were paid an average of £601,200 each last year.

KPMG declined to comment.