EY sent out a very ambitious, repetitive email to its loyal US grunts yesterday that can be summed up in one short statement: here’s some money so you people stop complaining. Will it be enough to stop the bleeding at this particular Big 4 firm and keep warm bodies in their chairs? Time will tell.
A tipster was kind enough to send us the compensation email in its entirety which has been transcribed below, bold formatting and all.
In the past two years, we have invested an incremental $2 billion in total rewards for our people across compensation, bonuses, recognition awards (RAC) and well-being benefits. For the next step in our compensation journey, we are making the following updates:
- We are accelerating the timing of our annual salary increase and promotion effective date from October to August, beginning this year. That means your applicable raise will be effective August 8, and you will receive your increase, annual Performance-Based Bonus (PBB) and client-serving promotion bonus in your August 26 paycheck.
- Spring client-serving promotions will continue to be effective this May, and annual promotions now will be effective in August instead of October, so we can recognize some of your career achievements sooner, too. Beginning in FY23, our US client-serving promotion cycles will be effective in August and January.
- As a result of our strong business performance, we allocated additional funding to our RAC program this year, allowing our partners to recognize more people for their individual performance and contribution. In addition to our RAC program, beginning next year in FY23, we plan to implement a discretionary mid-year recognition bonus program. This program will be separate from our annual PBB and will be funded based on firm performance as of mid-year. This provides an opportunity for our partners to recognize individuals based on their extraordinary performance and contributions throughout the year. We will share more about this program in the months ahead.
- Thanks to our strong year-to-date results and projections through year-end, we anticipate fully funding our PBB program for FY22. And similar to FY22, we expect FY23 compensation increases to be strong, competitive in the markets and aligned with the cost of living. You’ll receive notification of your base salary increase and applicable bonus amounts in your compensation statement on August 5.
These latest enhancements are a part of our compensation strategy and continued journey to be a leader in how we recognize and reward our people. We know you choose to build your career at EY for many reasons, including compensation, and we continue to look for innovative ways to create an exceptional EY experience, improve your well-being and help you learn and grow.
We also just launched our new EY WOW Transition Fund to support you in safely getting back together in purposeful ways, with reimbursement for out-of-pocket expenses related to team building activities, commuting, and dependent and pet care. The fund is part of our ongoing efforts to enhance our market-leading benefits and perks, which include our 2022 EY Well-being Fund expansion, updated meal allowances, and enhanced dependent care reimbursements.
We will continue looking for ways to recognize the valuable contributions you bring to EY by evaluating our total rewards, benchmarking across industries, and considering the economic climate. On behalf of US leadership team, thank you for all you do.
In our quest to bring you the accounting profession’s finest and most thorough investigative journalism, we also dug up this r/accounting thread which appears to be the only mention of the EY comp news on the sub so far, and it is predictably someone bitching about it because of course they are.
Affected individuals are encouraged to abuse the comment section below to share their thoughts on this news.