Deloitte partners took home record bonuses this year as their average profit pay topped £1m following a year of substantial growth for the business advisors.
The company, which has bases in 26 UK locations including Leeds, Newcastle, Bristol, London, Liverpool, Cardiff, Nottingham and Birmingham, has posted financial results for 2022, during which it made record investment in people and services. Its distributable operating profit for the year ended May 31 grew 21% to £711m, meaning average profit per member reached £1,058,000, up from £854,000 a year earlier.
The year also saw Deloitte bosses distribute a one-off capital profit on the sale of the restructuring business which averaged £196,000 per equity partner. The payments come after Deloitte hailed resilient markets for driving growth, resulting in a 10% boost in revenues to £4.9bn. It said its UK advisory businesses grew by 11%, and said growth in consulting was driven by demand across the private sector as companies bounced back from the pandemic.
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On a like-for-like basis, it said its financial advisory division had an exceptional year, driven by a buoyant mergers and acquisitions market and demand for advice on financial crime, regulatory changes and specialist corporate finance activities. It also saw healthy growth in its tax and legal divisions and its UK audit and assurance business grew 9%.
During the year it took on 4,500 new colleagues and is also taking on almost 2,500 graduates and apprentices across all regions, a 67% increase from last year.
To attract and retain talent it also introduced measures in its hybrid work model, including flexible bank holiday leave, and an overseas working policy where people can work in another country for 20 days a year. The annual pay review was brought forward by three months it invested £400m in salary increases and record level bonuses.
Richard Houston, Deloitte senior partner and CEO, said: “I’m proud of our people and partners whose commitment and skills have made this year’s performance possible. Demand for all our services was strong, particularly in cloud technology, digital transformation and M&A services.
“Our results have enabled us to make record investments – the highest in over a decade - in reward, promotions and skills. We enter the new financial year with momentum and are well placed to navigate the current economic headwinds.
“Our business has consistently demonstrated both resilience and agility over recent years. We enter our new financial year with strong momentum and are confident in our investments and our talented people. However, for the first time in recent history, the UK is facing high inflation, and rising interest rates and costs. Our role is to help our clients, our people and our communities navigate these economic challenges while investing for the future through skills, innovation and digital adoption.”
