Jon Holt

This increase of 4% comes even as pre-tax profits experienced a decline of nearly a fifth, reaching £364 million.

The rise in partner pay is attributed to a reduction in the number of equity partners, reportedly at its lowest level in two decades. Despite the upfront payment being £746,000, a £40,000 retention amount is being held back by KPMG, payable upon the partner’s retirement.

This financial success contrasts with the challenging business environment that led KPMG to implement cost-cutting measures, including job cuts in its UK deals and consulting divisions.

KPMG’s full-year revenue increased by 9% to £3 billion, a slowdown from the previous year’s 16% growth. The audit division played a crucial role, experiencing a 19% growth, while the deal advisory business contracted by 6%, leading to the decision to combine the deals and consulting practice, creating one unified advisory business.

Despite the positive financial report, KPMG faced challenges, including three penalties for accounting failures in the previous year. A £21m fine was levied for “textbook failures” in the audit of the collapsed outsourcer Carillion, marking the highest sanction from the UK’s accounting watchdog.

Jon Holt, chief executive and senior partner of KPMG in the UK, said: “Our people have worked exceptionally hard to deliver strong revenue growth against a challenging economic backdrop.

“Digitisation and emerging technologies are at the forefront of our clients’ minds, and we have the expertise to meet demand and help them gain a competitive edge.

“I am confident that our long-term strategy is delivering and putting the right foundations in place to transform the business for future, sustainable growth.”