For additional information on this subject including the performance review process, read this post, http://retheauditors.com/2009/11/05/live-our-values-demonstrate-our-behaviors-support-our-strategy/

Although it is based on information from PwC, and all firms are slightly different, it is pretty representative.

fm

According to the summary of the 2009 survey results (http://cica.ems01.com/CA_Profession_Compensation_Survey_2009-En.pdf), page 27, we find a table with “Owner’s Compensation.” For owners with partners, the survey found the following:

Median: $246,000 (2009) – in Canadian dollars
Mean: $306,603 (2009) – in Canadian dollars

The data does not distinguish between Big4 firms and others, but it does give you a rough sense.

I’ve also found another article claiming that a UK Deloitte partner (http://www.accountancyage.com/aa/news/1785156/deloitte-partner-loses-divorce-battle) made 750,000 British pounds (approx $1.2 million US).

So I think that gives one a sense of the range: $300,000 at the low end and somewhere around $1-3 million at the high end.

Aside from the raw numbers, I’m curious about how the mechanics of partner compensation work. Is it a base salary plus “bonus” (i.e. pay based on partnership units)? Is it a single huge lump sum payment? How does it vary? If a partner brings in a new $10 million engagement, do they get a certain % of that as personal compensation?

Just received word that email referred to below does refer to Deloitte.

@Anonymous – A regular commenter, who asked to remain super anon in this case, sent this update to me this morning.

…one of the Big 4 is announcing performance/utilization based professional reductions today; this will include staff and managers, and is for audit and IT auditors.

Looks like the reductions will be in the 1% to 3% range of total headcount, depending of geography.

The basis for the reduction is that the Firm is behind the financial plan, and with the slowdown, it looks like recovery back to plan is unlikely, and forecasts for next year need reducing.

Criteria for impacted people included performance ratings, past ultilization, and future projected utilization. Consistent with Firm policy, they will get some sort of severance package.

No word on partners.

What about the magical buckets of expense that they have? The huge quarterly payouts to “help” with quarterly tax payments? Auto reimbursement/ leases? Do they take any draws? Etc., Etc., Etc.

I would be willing to bet that most partners in the big4 probably claim around $550-750k, that from simply looking at their published financial information. If they are this stingy with reporting information about earnings TO THEIR OWN PEOPLE that tells me, at least, that they are just making sure they dot the “i” and cross the “t” because they aren’t reporting everything to the IRS.

Or I could be seeing black helicopters.

Please stop printing headlines like this without any support. Please try and be responsible in your reporting of “facts.”

I would love to know about Partner saleries along with everyone else. But your recent article, along with a few others, reads more like a message board topic than a blog.

-IJustWorkHere