PwC revenue rises, as partners take 30pc pay cut
PwC Australia has posted consolidated revenue of $3.2 billion, up 12 per cent, in 2022-23 but profit was flat as the firm’s tax leaks scandal hit the final months of the full-year results.
The result does not take into account the sale of PwC’s public sector consulting arm to private equity group Allegro Funds, which is expected to complete at the end of this month.
The $1 fire sale of the division will carve out a business that generated $680 million in fees for PwC in 2022-23. On the latest figures, that means PwC would drop from being the largest of the big four consulting firms by revenue to third, behind Deloitte and EY but still ahead of KPMG.
PwC Australia chief executive Kevin Burrowes: “It has clearly been a challenging year.”
The effects of the scandal have hit pay, with partners committing to a 30 per cent target income reduction for 2023-24 as the public sector carve-out and “ongoing reputational challenges” hit future revenue. The pay cut is on top of a 12 per cent decline in average partner income this year.
Staff pay increased by an average of 4.5 per cent in 2022-23, down on last year’s 9 per cent rise. Despite the challenges facing the firm, staff will share in a bonus pool of $47 million.
PwC’s tax leaks scandal, which involved now former partners sharing confidential government information with partners and staff at the firm, has upended an organisation which had long been the dominant professional services firm in the country.
The matter led to former chief executive Tom Seymour and other key leaders leaving, the quiet exit of dozens of partners as business dried up, and the takeover of the local firm by PwC global in the form of new chief executive Kevin Burrowes.
Mr Burrowes, who formally arrived
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