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PwC’s New Compensation Structure Gets the Spreadsheet It Deserves

As you know, PwC marched out a new compensation structure earlier this month and it’s been the subject of much interpretation, gnashing of teeth and even a fair amount of rejoicing. Of course, a complete analysis of this new structure would not be complete without the magic of Excel and lucky for you, a reader has taken the time to put some spreadsheet wizardy on it.

Here’s our tipster:

[Here] is an analysis of the new PwC compensation structure. It shows that the firm expects an approximate average raise of 8% per year and 16% per promotion year. The analysis also includes an approximate total compensation for each year of career progression.

I had to break up the image into two pieces so they could be readable. They appear on the next two pages.

Don’t forget that in Year 7, the bonus for promotion to manager is being phased in over three years, so that younger managers do not jump their more experienced colleagues in overall comp.

Obviously results will vary but this gives a pretty good picture of what your compensation will look like over the years at P. Dubs. If you’re busting, still not satisfied or have your own variables to add to the analysis provided, do share.

Compensation Watch ’10: KPMG Puts Some Ballpark Figures Out There

Since it’s Monday in late July (and many people probably had one old fashioned too many last night) we figured this day would have gotten off to a slow start. Well, we’re in luck! KPMG comes roaring out of the gate today with a little compensation update from none othercall me Rudy” Veihmeyer and Henry Keizer.

The news? Well, the promotions bonuses have caused some belly aching so the boys thought they would give you a sneak peak at what you can expect come merit increase time:

Update on Our Plans for 2010 Compensation
A Message from John Veihmeyer and Henry Keizer
8:19 AM ET, July 26, 2010

In April, we told you that there would be compensation increases for the great majority of our people and, assuming KPMG meets its FY10 plan, higher bonuses than last year for EP performers, and bonuses for higher performing SP employees as well. Now, as we head into the fourth quarter, we would like to provide you with an update on this matter. As you view this information, please keep in mind that compensation increases are determined on an individual basis, and reflect each employee’s role, skills, performance, geography, and experience, among other factors.

· Merit and Promotion Increases – For employees who are not being promoted, we expect SP performers will receive merit increases that will range from the low to the mid-single digits; EP performers will receive increases up to the high-single digits and in rare cases double digits.

In addition to any merit increases, employees who have been promoted should expect to receive a promotion increase of approximately 5 percent, with one exception: newly promoted CSD Managers should expect to receive a promotion increase of approximately 10 percent.

· Variable Compensation – The FY10 pool for variable compensation will be more than double what it was last year. This means that EP-rated employees will generally receive bonuses that are significantly higher than those of last year. In addition, approximately the top half of our SP performers will also receive variable compensation awards.

Please keep in mind this information is preliminary. Final compensation decisions will be made based upon our full-year results, so the ranges above could be adjusted based upon our firm’s performance between now and September 30. But, consistent with our commitment to keeping the lines of communication open, we wanted to share with you our best current forecast about these important matters.

In line with our compensation philosophy and our focus on a high-performance culture, we remain committed to sharing the rewards of the firm’s financial performance with our employees and providing a competitive total compensation package that differentiates exceptional performers with superior rewards. As we have said before, the strong foundation we have built within the firm, as well as our near- and longer-term business prospects, make us very optimistic. But to finish this year strong and begin FY11 on a positive track, it is critical that we continue to drive a high-performance culture by doing our best work, providing the highest-quality service to our clients, growing our business, and operating efficiently.

Thanks again for your continued hard work and for all you do to help our firm succeed!

So now that you have that to chew on for your last Monday in July, feel free to discuss the “low to the mid-single digits” for the strong and “high-single digits and in rare cases double digits” for the exceptional. And if you’ve got thoughts on the variable comp pool, you can go there too, if you like. Keep us updated.