Category: Salaries

Current and historical data on accounting salaries, bonuses, and Big 4 compensation discussions.

The Job Outlook Is Good for Accountants…But More Competitive

With one major deadline passed and two more coming up next week, some of you might be thinking about your employment options. It’s a common occurrence post-busy season to reflect on the past three-ish months, contact a recruiter and explore your options.

idea of what kinds of jobs might be attracting accountants in the year ahead so we got in touch with recruiter Adam Klitzke, Managing Partner of Emerson Search, LLC in Denver, Colorado.

Adam told us that he thinks that “2010 and…2011 are years where there is a “hot” background or skill set,” as opposed to a hot position (e.g. financial reporting, IFRS, or technical accounting). “[D]uring the previous 3 months, we haven’t seen the same job come up twice, but we have seen clients targeting the same type of candidate.“


So what does a hot “background or skill set” look like? Adam shared four primary characteristics that recruiters are currently looking for:

• 4-7 years of experience, the majority of which has been spent at a Big 4 firm.

• Experience with clients that comply with SEC regulation.

• Has experience supervising staff.

• Has obtained their CPA license.

“These candidates are not having any trouble landing interviews,” Adam told us. He added that in terms of your competition, there are far more bodies jockeying for a position, “in the current market we are seeing 5-10 candidates like this [with the ideal skill set] competing for the same job, whereas 3 years ago, a client would be lucky to see 2 candidates with this background.”

What if you don’t have the ideal skill set? Don’t worry, it’s not hopeless, “a second tier would look like someone with non-Big 4 public accounting experience coupled with industry experience (with a mid to large size public company – $200M+), supervisory experience, and a CPA license or an MBA,” Adam said.

Naturally, if your current background is lacking in these , it will be more difficult for a recruiter to help you land some interviews. Adam told us that while there are jobs out there for people with backgrounds that don’t fit the model above, those candidates typically find jobs without the services of a recruiter. If you’ve got bigger plans for yourself than that, it will be worth your time to pursue some or all of the points above.

The good news for those of you looking to make a move now is that you can expect to do well in terms of salary. As Adam told us, “Salary negotiations will be firm, but fair. Candidates will be able to negotiate an increase in pay and do NOT need to take a pay cut.”

Finally, another development he has seen has to do with the morale, “employee morale seems to be quite low and neither department heads or human resources are doing anything to combat that.” So, if you’re meeting with a recruiter it pays to be honest why your old employer didn’t give make you feel so good about yourself, “clients have asked us for ideas on how to improve morale and we have been able to help them as there are things a company can do other than increase salary to improve [that].”

Bottom line is that whatever your situation, it pays to be honest with recruiters about exactly what you are looking for. If you don’t like what you’re hearing from them, be honest and don’t settle for a position that you’re definitely not interested in pursuing. It may be a more competitive market but if you’ve got a strong background, you’ll have options.

Women Accountants Earn 60% Less Than Men in UK

Somehow female accountants over 45 in the UK earn 60% less than their male counterparts. The disparity is so ridiculous it defies understanding, but according to a study conducted by the ICAEW and Robert Half, men earn more than women at all stages of their careers and the gap widens with increased experience. This finding is consistent with the 2008 report. So ladies, if you’re on the partner track and thinking, “London might nice,” we’d advise against it. As for our female readers from the UK, you can always jump the pond, we’d love to have you here …


From the report:

Overall, male [Associate Chartered Accountants] are better remunerated than females – an average basic salary of £88,200 for males (median £76,000) is almost 50% higher than their female colleagues’ average of £60,500 (median £53,000) (Fig 3). The average male salary is up by 7% on last year, females by 10%. However, the average bonus of £24,700 for males has dropped slightly compared to last year, while that of their female colleagues, at £11,600, has increased by 33% (median £6,900 males and £2,400 females). The bonus received by male ACAs represents 28% of average basic salary, while females received only 19%.

The differential reflects in part at least that male ACAs are typically older (46 against 40 for females), longer qualified (18 and 14 years respectively) and more likely to be in a permanent full-time role (88% and 72%). They also spend longer hours at work (45 v 38 hours per week).

It’s especially cute how this is “in part” chalked up to age and experience. It would probably be terribly bad form for the ICAEW and Robert Half to come right out and say that the difference in average pay is say, absolutely ridiculous and blatant evidence of patriarchal institutions exhibiting clear gender bias when it comes to compensation.

ICAEW/Robert Half Career Benchmarking Survey 2009 [ICAEW via Accountancy Age]

Accounting Salaries Mapped by Region

Back again to decipher more of the data that you so graciously shared with us on our salary thread from December.

After noting that average Big 4 salaries and non-Big 4 salaries were essentially even, we now present the average regional salaries for you enjoyment or dismay:

• Mid-Atlantic– $88,831

• Northeast– $72,024

• Southeast– $56,000

• Midwest– $65,124

• Southwest– $73,185

• West – $64,706

Some analysis and the map, after the jump.


Surprisingly the Mid-Atlantic boasted the highest average salary based on the data collected. This was due primarily to two salaries that were reported from “JDs” working in “Washington National Tax.” The Mid-Atlantic average also included an Associate Director that reported a considerably higher salary than the average. If these three salaries are removed, the average salary is $76,254. which may be more in line with your expectations.

Another surprise that we saw was the higher than expected Southwest average salary. Again in this case, a brave Senior Manager in an advisory practice reported a much higher salary than most submitted. When this is removed the Southwest average comes down to $68,134, again, probably closer to what you would expect.

The Northeast, Southeast, and West all seem about right to us although we might have expected the West salaries to be a bit higher but then again we’re going with what we’ve got.

The map below shows how we grouped the states in the respective regions, with a few additional details on the regions.

Accounting Salaries Are Dead Even; Is Big 4 Work Experience the Difference?

Last month we opened a thread on your salaries and your response was impressive. Just for fun, we found some poor soul to crunch some of the numbers so that we might share some information on the data we gathered.

We’ll start off with a post facing off the Big 4 salary against non-Big 4 salary. Here are the average salaries for each based on the data we collected:

• Non-Big 4 – $72,136

• Big 4 – $71,166


If you getting worked up over less than a $1,000 difference, then you’re more shrewd than we imagined. For the more reasonable of you, the discussion is, what are the unmentionables here? Both Big 4 and non-Big 4 firms have their advantages and many of you have made the jump from Big 4 to non-Big 4; non-Big 4 to Big 4; Big 4 to non-Big 4 back to Big 4, whatever.

A popular argument is that the Big 4 work experience is irreplaceable on a resumé but is it? Will potential employers really pick someone with a Big 4 background the majority of the time?

Most people would agree that auditing is auditing and the tax law is the same no matter where you work. Smaller firms have just a many unique clients as large firms so there’s experience to be gained everywhere.

Now before you start shouting, “if you want a job at a Fortune 500 company, blah, blah, blah” how many of those jobs are really out there? Enough so that everyone that has left a Big 4 firm will be able to find a job? Let’s not pretend we all have the same ambitions here.

An Open Thread on Accountants’ Salaries at the Big 4: What Do You Make?

money.jpgWe received a request over the weekend to discuss everyone’s favorite topic: money.

This is a great idea on many levels since A) it’s been quite some time since we’ve dedicated a post to the subject B) there are plenty of newbies that have started since then but mostly C) knowing what everyone else is making is your God-given right.

Hopefully, this new thread will get everyone up to speed (or just completely pissed off on a Monday) and ready to run through brick walls in 2010.
In the comments, provide the following:
• Salary without bonus, bonus amount
• Level
• Practice (audit/tax/advisory), practice subgroup
• Firm, city/region
• Other notes/complaints
The reader requesting the thread, was kind enough to provide their details:
• $52k, $3k (in start year, bonus was a whopping $0 this year)
• Associate 2
• Audit
• PwC, Northern California

This is an equal opportunity post so regardless of your firm, get your numbers out there (this means you: GT, BDO, RSM/M&P, Crowe, Moss Adams, anyone else).

UPDATE, Tuesday: Thanks for all the input so far. Feel free to email us if you want to give us more details on your salary or ideas or other related thread discussions.

Other money related discussions:
Problem of the Day: Do You Quit Your High-Paying Job with the Idiot Boss?
Satisfied with Your Salary?
Problem of the Day: Your Staff Makes the Same Money As You (Maybe More)

Salary Satisfaction Poll Results

An official tally was necessary since it’s pretty obvious that Americans are way more hung up on money than our British counterparts. Results after the jump.


• So satisfied I need a cigarette – 8.7%
• Even if it’s bad, it’s still pretty good – 36.4%
• I can’t get no satisfaction – 54.9%
Frankly, we expected a larger margin of victory for “no satisfaction” what with the ubiquitous Siberia treatment and some of the staff making more than you. We admire your resolve.
As for the 9% of you that are getting hot thinking about your paycheck, we’re assuming you’re either in a constant state of bliss or delusional. Kindly elaborate.
Thanks to all that voted!

Satisfied with Your Salary?

unsatisfied.jpgThis is the last thing we thought we would see: No grumbling from accountants over pay freezes.
Maybe our number crunching friends across the pond are less hung up on money but Stateside “No grumbling” is, at the very least, debatable.
We figured getting a comparison poll was in order. So, continuing the theme of election day, we’ll ask you to vote again, this time on how you feel about your current salary. Feel free to elaborate in the comments.

Robert Half’s Salary Guide Doesn’t Have Many Surprises

Robert Half has issued its salary guide for 2010 and we wouldn’t say that’s its chock full of good news. It follows the Ajilon salary guide that came out a couple of weeks ago and it seems to present a lot of the same sobering conclusions.
Salaries will be virtually flat, according to Bob’s guide, increasing approximately 0.5% for next year. However, there are some areas that seem to have better prospects than others including:


• Tax accountants
• Financial analysts
• Senior and staff accountants
• Business analysts
Along with these positions, the guide states that employers are seeking professionals with certifications, broad experience, and expertise in technology or compliance.
RH also has a “Public Accounting Outlook” in the guide and it does not paint a pretty picture:

Compensation packages in public accounting have seen notable changes. Salary levels have moderated, with declines reported in some areas. Additionally, instances of large signing bonuses and raises are far less common and typically reserved for premier performers.

The silver lining is, again, for tax professionals but since more companies are trying to do tax work in house, public firms are now competing directly with their corporate clients for the talent. It also indicates that some smaller firms have done some hiring and our earlier post on considering a smaller firm elicited some comments in favor of choosing that route.
Overall, with the significant change in the political environment, the job market for accountants seems to be trending towards positions centered around compliance and rule changes and the competition will likely be fierce. You can request a copy of the salary guide by going here.
For those of you currently on the job search, discuss the salary trends that you are seeing in the current market. Good luck to everyone that is currently on the hunt.

Problem of the Day: Your Staff Makes the Same Money As You (Maybe More)

money.jpgApparently it’s happening, people. With several firms freezing pay for this fiscal year, some already hinting at an additional freeze for fiscal year 2010, and with less fewer offers being made on campus, it’s not outside the realm of possibility that the new associate nearly has the same salary as you.
It goes without saying that this is a contentious issue amongst the staff and it can be made worse if it is known to exist between members of the same team.
If you’ve been busting your ass for the last two to three years and seen very little appreciation in the form of merit increases and suddenly the new associate walks in making virtually the same as you, your motivation may evaporate on all fronts.
From a staff perspective, no new associate, no matter how virtuous will ever ask, “Is that what a senior associate makes? I wouldn’t be comfortable making that much without any experience.” Nice thought but not gonna happen. Firms will claim that they have to keep salaries competitive in order to win the best talent and may even encourage it in order to foster the “competitive environment”.
So discuss how prevalent this is on your team, in your office, or at your firm. Is there any good solution here? We’re talking about money, so there has to be some opinions.