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Comp Watch ’11: Deloitte’s New Structure Is Taking Shape

A couple of weeks ago, we heard that Deloitte was considering a similar compensation structure as PwC. This would result in Senior Associates making approximately 1.5x their starting salaries in three years, managers making 2x their starting salary and so on and so forth. At the time, it didn’t strike me as surprising that Deloitte would get all monkey-see-monkey-do on its employees simply because the Green Dot is a far more conservative firm than P. Dubs. While the structure at PwC was welcome with largely positive reviews, the Deloitte version was received less warmly.

Today, we have a little bit of an update for you – with slides! – on hure is progressing. From our tipster:

I’m surprised there was no article about this yet. Tuesday we all had a compensation call which went into great detail how raises and bonuses were handled. Here are some slides you might be interested in. It appears PwC scared them and they are copying. These numbers are still not official yet as they “are working out the numbers”…


Here’s a slide from the presentation on Deloitte’s total compensation earnings multiplier that our tipster sent over:

And here’s PwC’s:

So they’re pretty darn close, with Senior Associates doing slightly better at P. Dubs but Senior Managers faring slightly better at Deloitte, thus it ends up as a wash. Granted, the Deloitte slides only present information for AERS Advisory professionals (sorry audit and tax peeps) but it would seem odd if they opted to only change the structure for one group.

Other items worth noting include the 500 promotions for this year and the 3-5% bonus that accompanies the bump.

The pictures on the following pages show merit increases based on ranking (1 to 5 scale) for Consultants, Senior Consultants and AIP – Senior Consultants.


Presumably, in the bad years some high performers may see a paltry raise of around 4% but in the good years, it will push 16%, depending on metrics listed:


And even more impressive for Seniors, with highest performers receiving a merit increase of ~20%:


What’s interesting to note here is that Deloitte claims to have awarded bonuses to 95% of “eligible professionals.” So if I understand that correctly, 5% of those people ranked 3 or higher didn’t get a bonus. It may also get you a little weak in the knees if the AIP pool is already larger than last year’s “highest ever” pool:

Lots to digest and discuss here, so let it rip.

Deloitte Is Moving to 30 Rock

We’re still waiting for Jim Quigley’s tweet to confirm but it appears, based on an internal email sent to Going Concern, that Deloitte will be consolidating its offices to 30 Rockefeller Center.

Here’s our tipster’s email:

[I]t appears that they will be going public with this in the next couple of days. D&T is consolidating its three New York offices into 12 floors of Rock Center. The sublease from Merrill Lynch at 2 WFC is up next year and apparently [Bank of America] wanted to raise rents on them. The consensus is that there is just too much space that isn’t getting used and that consolidating the offices would be a more efficient use of the space.

Regards,

“Anonymous Tipster”

And here’s the internal email:

The only attention we’ve really paid to the Deloitte commercial real estate story is that they were threatening to leave the City altogether last summer but DWB debunked that theory sufficiently. This not only marks a major move for Deloitte but it also is a major new tenant at 30 Rockefeller Center. But why is so much sprawling cube farm space available at 30 Rock? Is this a result of Comcast’s purchase of NBC Universal from General Electric or is Jack Donaghy holding a fire sale? We don’t know the real estate business well enough to give it an educated guess so if you’ve got other theories, leave them below. We left a message with Deloitte but Christ, it’s after 9 pm on Friday, so we’ll back to you Monday.