The Big Four of the professional services world, namely, Ernst & Young, Deloitte, KPMG and PwC, have not had the best past few years since the pandemic.
Big Four’s Woes
At a time when major companies and the larger economies of the world came to a grinding halt in 2020, as a result of the COVID-19 pandemic, the aforementioned professional services managed to do well in the early years of the pandemic.
However, the time and years after that have not been fruitful for these companies, as they have struggled to manage themselves and their business. In addition, the big four have also been embroiled in myriad controversies, which have not aided their prospects.
The Big Four of the professional services world, namely, Ernst & Young, Deloitte, KPMG and PwC, have not had the best past few years since the pandemic.
No Pay For US Partners
In another development, adding to the woes of these companies and, most importantly, professionals associated with them, Ernst & Young or EY has reportedly held back of its US partners for 2024.
This news was first reported by the British publication, the Financial Times.
As per those reports, EY has informed its US partners that a portion of their compensation will be withheld until 2024.
This is reportedly being done due to the issues faced by the company, as it has been a financially tough year. This development understandably has invoked reactions from stakeholders, who have criticised the decision.
Tough Year
The decision was made to postpone about two per cent of the partners’ yearly salary in order to assist the company in managing cash flow.
In 2023, the London-based company announced a combined global revenue of USD 49.4 billion for the financial year ending June 2023.
This comes at the back of a recent decision, which saw the company dropping its idea of sequestering its consulting and auditing arms.
The idea, which was touted as a game-changer, was eventually abandoned. This is pertinent, as this move was seen as the next big step for all the big companies that have been vying to find their pathway to better prospects.
In 2023, the London-based company announced a combined global revenue of USD 49.4 billion for the financial year ending June 2023. This, according to the company’s own estimates, marked an increase of 9.3 per cent.
