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Mid-tier accounting firm RSM’s UK partners have been paid a record amount, propelling their pay packets to levels enjoyed at Big Four firms.
Average profit per equity partner grew about 16 per cent to £821,000 from £708,000 in the year to March, according to RSM’s latest set of results seen by the Financial Times.
This means RSM’s equity partners are earning as much as some at the Big Four firms. EY equity partners this year took home an average of £787,000. PwC and Deloitte partners pocketed £862,000 and over £1mn respectively. KPMG, which is yet to report for its most recent financial year, handed its equity partners an average of £816,000 in the 12 months to September 2024.
RSM’s partner profits also outstripped mid-tier rivals’. BDO, the largest firm outside of the Big Four by revenue, cut pay for its roughly equity 350 partners to £589,000 in the year to July — £100,000 less than the previous year, it said on Tuesday.
Grant Thornton meanwhile announced that its 250 partners earned an average of £682,000 in 2024 as a deal to be bought out by private equity group Cinven completed.
RSM’s record partner profit comes amid a wider shake-up of the sector, as Big Four partner promotions sank to a five-year low in the UK. Advances in artificial intelligence threaten to reform the landscape, with some former Big Four partners betting on mid-tier firms, or leaving to found or join new boutique rivals.
For its part, RSM UK has just agreed a transatlantic tie-up with its US sister firm that will create a new leadership structure integrating the two firms in order to create a stronger challenge for rivals. The newly combined RSM is pitching other member firms across its global accounting network on joining as an alternative to taking money from private equity.
Rob Donaldson, RSM chief executive, said the results showed “consistent growth . . . in what continues to be a very tough market.”
“We want to compete for the best talent in the market,” he added. “That’s why we’ve worked to establish a performance culture. We believe when people recognise the value of working hard and collaboratively, rather than competing with each other, it delivers the best outcomes for clients.”
UK revenues at RSM grew almost 10 per cent to £594mn, powered by growth in audit, where revenues increased 14 per cent to £188mn and include audit work for clients such as Greggs, Frasers Group, Superdry and Helical.
The tax business also grew 13 per cent to £183mn. However, the firm — like others in the sector — had to navigate a slowdown in consultancy work, which grew by just 3 per cent to £223mn.
The revenue figures outstrip growth at the Big Four firms that have reported their results so far. EY’s revenue grew the most at 2 per cent on fee income of £3.8bn, while the lowest was Deloitte, whose revenues contracted 1 per cent.
RSM said the growth “supports its drive towards a first-of-its-kind Transatlantic partnership [and] continues its path to becoming first-choice advisers to middle-market leaders globally.”
The firm kept its headcount level “during a year when many peers markedly reduced staff numbers,” it added.
