CPA Canada has shared some Canadian accounting firm hiring trends worth keeping an eye on. Among them? Ditching bonuses. Despite their longtime presence in the traditional CPA compensation package, bonuses are being abandoned in some firms, notes Adele Harraway, managing partner, Canadian Accounting Consultants, which specializes in CPA recruitment. Instead, firms are upping the starting […]
Another Deloitte practice is tempting its seniors and managers with a one-time lump-sum payment to try and keep them around a little while longer. A tipster told us: Seniors and managers in Deloitte Tax are eligible for a $20k retention bonus. They would have to pay it back if they leave before 2 years. Payouts […]
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. […]
Three years ago this week, Crowe made the news for being fined $1.5 million by the SEC for its audits of Corporate Resource Services Inc., which can best be described in three words that are as follows, and I quote: “Stink, stank, stunk.” But this week, nothing but good news coming out of the Crowe […]
There’s a firm that finally gets it when it comes to giving employees of one of its core lines of service a reason not to join the mass exodus that is going on right now in the Big 4. It’s not promoting some fictitiously great company culture. It’s not giving employees Omaha Steaks or 1-800-Flowers […]
Seen on r/antiwork And no, it’s not actually an accounting firm. According to OP, a hotel posted this to LinkedIn “as a fun how much we love our employees” post. Almost had ya tho eh?
A question we’ve often been asked through the years from aspiring CPA candidates is: Do accounting firms give out bonuses for completing the CPA exam, and if so, how much? The answer is, yes, many public accounting firms do throw some money new CPAs’ way for passing all four parts of the exam, but the […]
As you know, the Big 4 are trying to make up for either completely ignoring or providing pathetic raises and bonuses to employees last year due to the pandemic, even though three of the four (womp, womp, KPMG) pulled in the most revenue in FY 2020 than they ever had before. It’s hard not to […]
By now you’ve heard or read about the $250 bonus PwC is paying to employees each time they take a full week’s vacation for the next year. Now Mazars USA is throwing its hat into the “pay your employees to go away” ring. Mazars sent an email to employees late last month explaining its new […]
For some reason Big 4 partners think buying their capital market servants pizza will make everything all better. Here, have a free slice of pepperoni or two as a token of our appreciation for working those 80-plus hours last week. Your employees are adults, not elementary school children. But some of my favorite public accounting-related […]
Nearly a week after Deloitte in India said it would give all employees either a bonus or a straightforward increase in salary this month as the firm bounces back from a pandemic-related malaise, PwC leaders in India are also sharing the wealth with employees as a “token of appreciation” for hanging in there during the […]
Yesterday we posted a short article about the holiday bonuses that were recently bestowed on employees of EY U.S. EY Canada, which was either $750 or $1,500 depending on rank. (Although EY U.S. employees found out earlier today they are getting mid-year raises. More on that here.) Our lone commenter thus far on the EY […]
On Saturday while I was waiting in line at Starbucks, I was scrolling Reddit and saw a couple posts on r/Big4 about EY of the Canadian variety handing out Christmas bonuses to senior managers on down. According to one post, here’s what everybody got: $1,500 for managers and senior managers $750 for staff and seniors […]
[Updated on Sept. 10 with additional information.] Back in late June, we were told that Plante Moran employees wouldn’t be getting raises this year, that the firm was only paying out bonuses at 75%, and that there wouldn’t be a 401(k) match, presumably due to the COVID-19 crisis. Well, we got an update this week […]
If we look back at the firms in ’Murica that have sent the most people packing during the COVID-19 pandemic, three immediately come to mind: Deloitte (obviously), Crowe, and RSM US, which had not one but two rounds of job cuts. Those left standing at RSM must be feeling pretty resilient, having somehow dodged two […]
[Updated on June 12 with additional information.] So we were told today by a couple of people that PwC had a webcast for new hires on Thursday, led by Chairman Tim Ryan, U.S. Recruitment Leader Rod Adams, and a couple of other people. Once the spiel about what PwC is doing to address the COVID-19 […]
I’m sure all you KPMG U.K. grunts are heartbroken over this news: After all that’s gone wrong at KPMG over the past year, its UK leadership probably didn’t expect big bonuses. Still, after the hard graft of trying to engineer a turnround, a £6m pay cut is going to hurt nonetheless. The 25 senior managers […]
A new timesheet policy being rolled out at KPMG U.K. is causing a little ruckus between employees and management. From The Guardian: KPMG has angered UK staff by threatening them with £100 fines if they submit their paperwork late. The accounting company said it would impose the penalties if staff were late to file their […]
So, yeah, the whole “putting the 2018 PwC compensation thread in Open Items” thing didn’t go too well. After just two responses (thanks to SlowlyDying1065 and Franchise) and a minus-27 vote rating, this thread had become a dumpster fire. But now that we’ve resurrected the article comment section, we’ve taken this discussion out of Open […]
There’s been lots of talk this summer about compensation, as usual. It’s been a major part of Going Concern’s coverage since the site started in 2009. Over the years, one of the shortcomings of the coverage has been the focus on the largest accounting firms. And it’s true! We’ve focused on the Big 4 and […]
Apologies to all the Deloitte compensation junkies out there experiencing withdrawal symptoms. We received this tip awhile back and, judging by the timing, many of you are anxious to yak about what’s going on: The national call was today and comp talks with partners won’t be happening until after 8/17. The raises take effect in […]
Okay, okay. I’m sure some people inside the House of Black and Yellow need a break from writing thoughtful emails to Mark Weinberger. It seems that yakking about EY compensation is the perfect way to do that. The first requests came in yesterday and have been picking up steam today. A tip from yesterday notified […]
You just handed in your notice and finally pulled the trigger on resignation from public accounting. It’s both liberating and terrifying. Your email box fills with things you have to do before you leave. It’s a mix of run-of-the-mill farewells and requests to set up an exit interview and transition meetings for each of your […]
You’ve got to hand it to PwC, they’ve really embraced announcing stuff on Twitter. I’m looking forward to the day when people starting tweet their PwC compensation details at @going_concern. Anyway, here’s a tweet from last Friday: It’s #PwCPromotionDay! Incredibly proud to be celebrating everyone who is marking a career milestone today! https://t.co/vJtwzFiqrh pic.twitter.com/Mu8kwbWooh — […]
The bombing raid of requests for the EY compensation thread started late last week and didn’t let up over the weekend or this morning.
Back in October, we discussed whether the CPA exam would ever become an optional within CPA firms. The reason the topic even came up was due to the fact that while the number of accounting students continues to increase, the number sitting for the CPA exam hasn't kept up, either declining in some years or staying flat.
Everyone's a winner! At least that's the sense we get reading this message from Deloitte Advisory Chief Talent Officer Monica O'Reilly that a tipster dropped us earlier today: Your contributions helped make FY15 an exceptional year as we deepened our client relationships, distinguished our brand in the market, and positioned ourselves to be clearly differentiated. […]
This month we've received a couple of tips wondering about the KPMG Early Career Incentive Bonus, something we initially covered way back in 2011. We also did a follow-up in 2013 when the first payouts were made. For those with foggy memories, here's how it works: If you are a current CSD senior associate with […]
We know those of you awaiting offers have been watching compensation threads tick by thinking to yourselves "man, I can't wait to get my offer and compare my salary to those of my fellow interns-turned-FTers in one big monetary weenie measuring contest on GC!" and day after day goes on with no one mentioning offers. […]
We all know the job market is pretty darn fantastic if you've got an accounting degree, a remedial understanding of good hygiene, a button-up shirt or two and the social skills of a well-adjusted 7 year old. But in Detroit, the market is even hotter: The competition to hire CPAs in metro Detroit has heated […]
We're hearing a couple rumors that the audit practice is giving out free money, anyone else? Some people are understandably skeptical (though obviously aren't familiar with the phrase don't look a gift horse in the mouth): FYI EY leadership awarded all Assurance Staff through Senior Managers $500 in the 5/30 paycheck. Leadership has never issued […]
Not sure if you heard the news but the IRS has made friendly with its employee union and will distribute $43 million in bonuses, $32 million short of what the union says employees were owed. Well, Senator Orrin Hatch of Utah heard, and he felt this way about it: "It’s hard to think of a […]
While the firms are busy trampling each other to recruit top talent with a salary/benefit/work-life balance pissing contest, many of them are missing one important component to their seduction strategy: CPA exam incentives. We already know some firms pay for materials, give you time off to study, and offer cash incentives for passing the exam […]
UPDATE: Hopefully by putting this post front and center, this will eliminate any confusion. But try to use your inside voices. Some of us are trying to work. UPDATE 2: It's been nearly week so we're moving this post over to the margin. Instructions re: inside voices still applies. It has been a year of […]
If you're of the House of McGladrey and you can't find the compensation thread, let me point you this way. Since conversations started on Friday, reactions are just starting to roll in and will continue through next Friday, but one source responded to our question of people's expectations this way: Tempered would be a good […]
Sometimes on a hot summer day there's nothing better to do than talk about but money. A recent memo from KPMG's advisory leadership entitled "Outlook for 2013 Compensation" is happy to share the news that FY 2013 has been motoring along and that they are cautiously optimistic the last quarter will round out nicely: We […]
Historically, mid-July is when things get rolling at McGladrey and yesterday we received the first notice that things were starting this week. Email went out that compensation and bonus discussions would begin on 7/12 and conclude by 7/26. I think a McG comp thread is in order. So you have all of today to gird […]
Have a question for GC’s exclusive team of underachievers? Get in touch and we’ll do our best to do the research for you. From the mailbag: Is there any career benefit to not only passing the CPA exams, but aceing them and getting the Elijah Watts Sells award? You didn’t hear? The Elijah Watt Sells […]
Remember back in 2011 when KPMG announced a loyalty compensation program called the Early Career Investment Bonus? It was a pretty creative plan on the firm's leadership to entice senior associates to stick with the firm for the better part of a decade. For that commitment, a person could hypothetically accumulate a $36,000 payout through […]
Have a question for GC's exclusive team of underachievers? Get in touch and we'll do our best to do the research for you. Hey GC Team (Adrienne/Caleb/MIA freelancer), I'm a CPA candidate starting with the Big 4 this fall. I'm potentially in line to get the EWS award (FAR-94, AUD-96, REG-98, BEC on 8/14) […]
Last week, we threw out a thread to get Deloitte's compensation discussion going which really dived into nothing of particular importance other than the usual bickering. It's possible that the discussion jumped the gun a bit, but if nothing else it got people lathered up and anxious for more details. Thankfully, we now have more […]
This just in: Contribution awards at PwC were given out last pay period. Talking to who I perceive as top performers in my group (Tax line of service), the upper range of the bonus was $1k. Some (many?) at Papa Whiskey Charlie won't be satisfied by such a paltry sum – especially since several have new […]
Last month we told you that KPMG was kicking around the idea of loyalty bonuses for senior associates. Today we bring you the good news that the firm has officially announced the “Early Career Investment Bonus” which more or less amounts to a loyalty bonus.
This news was brought to Klynveldians this morning by John Veihmeyer and Henry Keizer (full memo on page 2). Let’s take a look at what the boys had to say:
Here’s how it works: If you are a current CSD senior associate with a 1, 2, or 3 rating you will be awarded $4,000 to be paid on May 15, 2013, provided you are employed by the firm on that date��������������������ut it gets better. By December 31, 2011 (just prior to the earnings period), you can elect to defer that $4,000 award for one year or two years and watch it grow:
• Defer the bonus for one additional year and receive $8,000 in May 2014
• Defer the bonus for two additional years and receive $12,000 in May 2015
And it gets better still because next year the cycle starts all over again. And, the following year, it starts again! So a typical first-year senior can look forward to three ECIB cycles with the opportunity to “layer” up to $36,000 in total bonus payments by the end of the last cycle. Alternatively, participants who are eligible for multiple ECIB enrollment cycles can choose different deferment options for each cycle, giving them theopportunity to customize the timing and amount of their ECIB award to meet their own needs or particular life events, like a down payment on a new home.
Obviously the catch here is that you’ll have to endure the next few years of your life within the House of Klynveld. But to that end, it seems like a halfway decent opportunity. Some might see this as a suicide mission but if you do in fact make it to May 15, 2015, that’s $12,000 in your pocket. John and Hank even gave us a nice example:
As this example shows, it will take a pretty huge commitment from anyone looking to score all three of the cycles for the big payout of $36,000. SIX. YEARS. AWAY. I won’t even begin to try and tell you what can happen in that time frame. Obama will have finished his second term by then (assuming re-election, obv). Countless people you know who are gigantic losers will get married, have kids and then probably get divorced. Facebook (and many people on it) will be dead. I’LL BE ON THE CUSP OF MY 40s. Get it? This isn’t exactly around the corner, people.
All told, this is a pretty progressive idea put out by KPMG and it seems better than the Above and Beyond awards which were a total flop.
So HoK, what say you? Got any career moves planned in the next two years or you sitting tight for the $12k? Anyone feel like the firm will take the opportunity to guilt those that don’t defer the bonus? Does anyone know if this in addition to any annual incentive comp? Discuss.
We’re still waiting to hear what the Next Level is but this should tide you over in the meantime.
I’m a second-year audit senior associate at KPMG in the New York Office. This past Wednesday there was a round-table discussion with about a dozen seniors to discuss compensation. I’ve been looking on Going Concern to see what has turned up, and since I’ve yet to see anything i figured I would send along what was discussed…
The meeting was run be a couple of our heads of compensation, and they were certain to tell us that in no way has this been approved by leadership, but as long as feedback from the round-table sessions is positive, they think it has a good chance of happening. They asked us about how the above and beyond award [Ed. note: aka utilization bonuses] was received, to which everyone responded negatively, and they unveiled their plan for future bonus compensation to reward loyalty for the firm. They said that this plan would be in addition to any raises and variable comp that the firm already has, so this would act as a reward for loyalty to the firm. I will highlight the details below.
-This plan is applicable for senior associates
– In December everyone makes an election that they classified as immediate, one-year, and two-year. The immediate pays $1,000, the 1-year pays $4,000, and the 2-year pays $8,000. This election would be made each December by senior associates. One example they gave of a first-year senior associate entering this bonus program was as follows:
December 2011: two-year election – pays $8,000 in May 2014
December 2012: two-year election – pays $8,000 in May 2015
December 2013: one-year election – pays $4,000 in May 2016
They were selling us on the fact that you would be paid out $20,000 in the span of twelve months, which of course sounds pretty great. One thing to keep in mind is that the terminology “immediate”, “one-year”, and “two-year” isn’t completely accurate. In reality it is more like one, two, or three busy seasons. Some of the particulars are that once you make an election you’re stuck with it, so if you take the immediate payout and happen to stay another few years, you are less loyal than someone who knew ahead of time. Also, if you leave the firm before you reach your payment date you obviously get nothing.
The plan was generally well received in the meeting, but didn’t get good reviews at all when I told some of my co-workers about it. I am curious to see how others feel about it. We all seemed to agree that it didn’t seem worth it to take the $1,000 payout because after taxes you’d barely notice it, and that it would take real guts to take the $8,000 payout, because as a first-year senior associate the length of your deferral is longer than your employment at the firm to date, so you never really know if you’ll still be there to collect.
Say what you will about the KPMG, they are trying to get creative with the bonus structure. Whether or not it takes with Klynveldians is another matter entirely but you can get started by commenting with your reactions below.
Along with last Friday’s news of “exciting changes” coming in the compensation structure, we’ve received word a little bonus paid out PwC’s last run:
I’m a little surprised no one has emailed you about the bonuses that were paid out this last pay period to PwC associates and seniors. This wasn’t across the board to everyone like the first December bonus [Bonus Watch ‘10: PwC Holiday Payouts Coming In]. I think first years all got $500 (since they didn’t receive the first December bonus) then everyone else received a bonus that was tied to performance/utilization (and I’m told some individuals received nothing if the managers/partners thought they didn’t cut it). I’m curious what the payouts were in other markets.
I’m a second year senior in the Midwest market and got $1200. I know of another senior up for manager that received more than that. I think this is separate from whatever changes they’re going to announce this week about our pay structure. Pretty much the message I got from my partner was this was something like a down payment on the year end bonuses, which makes me believe when our year end bonuses are announced, they’re going to immediately bring up the money they gave us in December (two bonuses for some) and then this, and say that’s why our year end bonuses are lower.
The webcast is supposed to be today but we don’t have the details and haven’t heard anything yet, so keep us updated.
Details of the utilization bonus came through to managers in the NY Office to prepare them for the announcement to staff. Payments will be made in April and October based on total billable hours. Three Tiers T1 – 1700 hours, T2 1800 hours, T3 1900 hours, must meet or exceed hours listed. Bonus amounts based on base salary and level.
Associates are as follows as a percentage of base (might be slightly off, SA here and didn’t pay much attention to Associates pay) T1 – 2% T2 – 3%, T3 – 4%. Senior Associates T1 – 2.5%, T2 3.75%, T3 5%. So for a year if you reach 1900 hours, 950 Oct-April and 950 April-Oct, you would have received 10% of your base pay as a bonus broken into 2 payments.
I might have some of the numbers slightly off, as I read over my managers shoulder, and am only interested in Tier 3 SA as I had 2100 billed hours last year, but I think they are generally accurate. This was for IT Advisory. I know other Advisory practices have the same pay out rates but lower hour expectations by tier. No idea about Audit or Tax.
UPDATE: Tables from the advisory email that was sent out earlier today:
If anyone can confirm these numbers for IT Advisory, please get in touch. Likewise, [I]f you’re in other advisory groups, audit or tax and have the details, email us and we’ll update.
Last month, we shared some bonus news with you courtesy of McGladrey that included a couple of extra days off (including tomorrow), access to baby/pet/parent sitters and yes, there is money involved.
Maybe because there are only less than two shopping days, some people are getting impatient:
Well, it’s the morning of our last day of work before the holiday break and employees still don’t know if they are getting a holiday bonus. It was stated to us bonuses are back but no communication has been sent out. What are they waiting for? Many people are on vacation already since we are off Thursday and Friday. Is Santa going to deliver it to each of us individually?
You think they could communicate that. Or maybe you have to be a hot shot partner to get a bonus. I for one know I will be pretty pissed off if there is no bonus, especially after the company wasted all that money on a 144-foot cake that went to waste earlier this year.
They can talk about how great we all are and what we have to do in the coming years but it’s all hogwash if they don’t give us a bonus. I know one thing, Steve Tait [former President of RSM McGladrey] would have made sure we got bonuses…will C.E.?
– Disgruntled in McGladrey Land
We have three main points here:
• Ranting about “no bonus” after a lengthy email from C.E. Andrews and Dave Scudder explaining that there would be bonuses could easily misconstrued as “psychotically cynical” but perhaps there have been broken promises in the past. If so, we haven’t been made aware of this.
• The email C.E. and Scuds stated “the pool will grow based on our year-end performance,” and “In January, we will be introducing a new program to provide real-time recognition and monetary rewards,” so maybe “nice” is virtue in Minnesota but “patience” obviously isn’t.
• We hate to break this to you but Santa Claus will not be delivering your bonus. Santa Claus is not real.
Fresh off yesterday’s news of an improved FYE ’10 (and possibly more red meat!), KPMG announces their mid-year surprise. This should make busy season interesting, no?
New Above & Beyond Award for Staff Linked to Chargeable Hours
A Message from Jim Liddy, P. Scott Ozanus, and Mark Goodburn
8:11 AM ET, December 17, 2010
As we near the end of the first quarter of FY11, we are pleased to report that the firm’s business strategy is working well and yielding financial results that exceed our operating plan.
We are busy across Audit, Tax, and Advisory, with many of our client service professionals—especially staff—working particularly hard. While we are increasing our hiring efforts to meet the demand for our services, we also feel that it is important to recognize and reward outstanding efforts of our team members.
To this end, we are introducing a new Above & Beyond award that will provide all eligible Audit, Tax, and Advisory associates and senior associates who exceed chargeable hour targets with meaningful FY11 cash awards.
Above & Beyond awards will be paid in April 2011 and October 2011 and will be in addition to any year-end variable compensation or merit increases.
More details about the program, including award amounts, chargeability thresholds, and program guidelines will be communicated functionally by January 5.
The Above & Beyond award recognizes associates and senior associates for extraordinary effort while we continue to address our resource needs. And, in line with our compensation philosophy we will continue to monitor the marketplace to ensure that all our people are provided with competitive compensation that differentiates exceptional performers with superior rewards.
Our commitment to the highest-quality service to our clients requires that each one of us continues to do our best work and meet our objectives. Thanks again for your continued hard work, your outstanding contributions, and for all you do to help our firm succeed!
So, House of Klynveld pre-managers, what’s the consensus? It’s an extra bonus, paid twice, all practices are eligible and the firm will “continue to monitor the marketplace” (translation: read Going Concern) to make sure things stay competitive. It seems like a decent deal, although the award amounts are TBD. The only problem that we foresee is the time-honored tradition of some people putting in face time merely to run up their hours. Granted, budgets should help self-regulate that phenomenon but we all know how well that works.
Anyway, discuss your thoughts and let us know when you hear the award amounts.
What the hell is in the water today?
FYI – “Select” resources in Northeast Advisory are getting notified that they will be getting a small holiday bonus (ranging from $500 – $2000) in their next paycheck.
Happy Holidays 🙂
If you’re not “select” feel free to get Grinchy in the comments and if you are, then go but an iPad.
This just in:
PwC West Coast just got issued the increased spot bonuses you talked about in this article:
From what I have gathered, they were either $1,500 or $2,000 in amount. (I have talked to several peers about this)
This is in addition to chatter we heard last week about bonuses being awarded in New York. If your city’s office is spreading the holiday cheer, discuss below or email us the details.
UPDATE, Thursday circa 11:00 am: Another tipster begs to differ on the amount:
I haven’t checked my paycheck yet- but my bonus sure as heck wasn’t $1500-$2000. I was told I was getting about $800.
The only thing is, there aren’t a lot of details at this point. The firm’s first quarter is not over until the end of this month, so the pool likely hasn’t been determined and it isn’t known whether the mid-year comp will be paid as a bonus or as a merit increase. Our source on the matter speculates that it will be a bonus rather than a raise but it is fairly certain that it will be structured in a way that will incentivize employees to stay with the firm. There has been steady stream of people leaving (which is not atypical this time of year) and there are hopes that this show of love will stem the tide.
So while it appears that the House of Klynveld has heard your grumbling about anteing up, time (and the amount of money) will ultimately determine if this will satisfy the troops.
If you’re familiar with the talks or you have more details, email us the details and discuss your thoughts below.
UPDATE – circa 2:10 pm: Some thoughts on a non-bonus approach:
Pure (educated) conjecture on my part, but I would assume that the mid-year “surprise” would be a raise, as the firm is apprehensive at this point about giving bonuses, because people could just take them and leave. Harkening back to our SOX-404 years (2005), we gave multiple raises, bonuses and awards throughout the busy season (i.e., if you worked 60+ hours in a week, immediate $200 award) with a bonus at the end of the tunnel. I seriously doubt any early 2011 compensation would be front-loaded.
And then, in case you weren’t already aware, there’s this:
In other news, [the Dallas] office has been reaching out and giving offers to people they have previously laid off and are seeking out experienced hires. Not sure if it’s firm-wide, but an interesting sign of desperation nonetheless.
From the mailbag:
I work at GT as an associate in [a Southwest] office. Partner called to tell me i got a 1k bump to salary. It appears that GT is giving out raises in December. They are calling them market adjustments…
There seems to be confusion as to whether this is a bonus, lump sum raise, or spread out over the year. My partner told me it’ll be spread out over the year and it was a permanent raise. Others have been told it is a lump sum bonus. The new A1’s found out yesterday their starting pay was increased. I’ve talked with seniors and none of them have heard anything I know about, and they seem pretty pissed at the whole situation.
Are SAs getting blanked? Is this happening anywhere else? Inform everyone below or email us if you know the scoop.
This just in:
Was communicated a spot bonus yesterday, PwC Tax. $4k as a senior. I have never received a spot bonus anywhere near this size. I think instead of mid-year salary adjustments, they are giving enhanced spot bonuses to the higher performers. This is in addition to the “ipad or cash” extravaganza from earlier this month.
PwC is really buttering some people up, aren’t they? Either it’s going to be a rough 2011 or the good times are really back. If you’ve received similar news this week, do share or get in touch and we’ll keep things rolling here.
We reported last week about a rumor that PwC would be paying bonuses and making salary adjustments this December and we now confirmation of the bonuses, courtesy of an email from PwC’s Bob Moritz.
BoMo t that thanks to a solid first quarter, the firm would like spread a little wealth around in the form of $1,000 bonuses for “client service and IFS” employees who were with the firm prior to June 30, 2010 and $500 bonuses for those hired after June 30.
The firm is letting employees choose their “recognition payment” from one of the four following options:
• Net payment of $1,000/$500 included in the December 15 pay cycle.
• Visa gift card
• $1,000/$500 charitable contribution to the PwC Foundation in your name – Aka the PwC Human Fund
In addition, Roberto informed everyone that the spot and bonus pools are being increased across the firm. There was also the standard words of encouragement, repeated “thank yous” and whatnot. The email appears in its entirety below.
So, P. Dubbers – doesn’t look like a mid-year salary adjustment but it beats a sharp stick in the eye. Discuss your contentment or your undying resentment in the comments.
Recognizing your contributions
Thanks to your efforts in providing quality service to our clients, our first quarter results are showing a strong revenue increase year over year. We all should be proud of these results. We’ve supported one another, served existing clients and stakeholders at the highest levels of quality in an extremely competitive environment, and won new work–all achieved through delivering the PwC experience and the new brand promise!
Rewarding your efforts
Because your efforts helped us drive our results, we want you to share in the rewards. Last month I told you that we have taken the results of our top-line growth and have begun reinvesting in you through our holiday time off and celebrations, in-person training events, and more. To further acknowledge the role you have played in our success to date, every staff member–both client service and IFS–will receive an after-tax “recognition award.” Those hired prior to June 30, 2010, will receive $1,000. Those hired on or after June 30, 2010, will receive $500. We debated whether the recognition payment should be in the form of cash or a gift, and concluded that you should decide. So, every staff member can choose from one of the following:
An additional net payment of $1,000/$500 to be included in your December 15 pay period.
Order from several versions of the iPad (total value of iPad and gift card will depend on whether you’re eligible for the $1,000 or $500 gift award).
A Visa gift card valued at $1,000/$500 to use for the holiday season, vacationing , technology gadgets or anything you’d like to purchase for yourself or others.
We will make a $1,000/$500 charitable contribution to the PwC Foundation in your name.
More details to come shortly on each of the options above, as well as how to choose your recognition via a special website.
Increased bonus pools
In addition to the benefits we announced previously and the recognition award mentioned above, we have also decided to increase our spot and bonus pools across the firm, enabling us to better recognize and reward those individuals who are truly delivering for our clients and driving our results. As our top and bottom line continue to improve, we are committed to sharing those results with you. Shortly, you will be hearing from your LOS on how these increased bonus pools will be earned and rewarded over the remainder of FY11.
Increased hiring to help your workload
You’ve been working hard, and we recognize that monetary rewards and compensation are only part of the value you look for from your PwC experience. You have told us that personal and professional development, career advancement potential, peer and team relationships, and even having a little bit of fun along the way, are also important to you. We want you to know that we are also working hard to relieve some of your workload through our increased hiring efforts. In fact, to help lighten your load, we’ve hired more than 1,400 new experienced people in the first quarter alone (for comparison, we hired a total of 1,725 in all of FY10), increased our campus recruiting from last year and are bringing resources to our practice from around the world. Many of you played a key role in bringing in that new talent, whether referring people, interviewing potential candidates, or on-boarding new people. Again, we thank you for those efforts and encourage you to keep them up. We will continue hiring resources to support our current and future needs as we look ahead towards achieving our long term goals, while also providing appropriate work-life flexibility for you.
Thanks for all you do
Again, on behalf of the partners, I want to recognize you for all you do for your teams, our clients and other stakeholders. To me, this demonstrates the power of 30,000 people coming together to build relationships and add value for our clients and one another–delivering on that new PwC brand promise! The fact is, you are making a difference, and our collective efforts are paying off.
Join me on Wednesday!
I look forward to speaking with you on Wednesday at 3pm ET during our third firmwide Town Hall webcast. If you haven’t already, check out the blog and help your colleagues get ready to put me and the LOS leaders on the hotseat with your questions.
In the meantime, I look forward to continuing this journey of success together!
So far there are several reports of low to mid-teens and some as high as 20%, which some simply don’t believe.
We do have some specific details for assurance associates in New York and they don’t sound terrible:
NYC first year associate went from $55k to $64k, associate raises [are] coming in around 11-18%
So if you’re keeping score at home (and we know you are) it appears that the partner at E&Y who prognosticated that raises at his firm would beat PwC’s Raises appears to be right in some cases but perhaps not all.
Sooo, Ernie troops – are you happy? Disappointed? Suicidal? Ready to jump ship? Or calling your friends at PwC to brag how you’re keeping the pace? Discuss.
Back in November 2008, KPMG suspended the highest level of its Encore bonus award, the Standing Ovation to “manage costs.” Since there is no shortage of exceptionalness at Radio City, the $500 awards were adding up so word came down that it was ixnay the tandingsay vationsoay.
The firm did keep its “Bravo” award that was good for $200 and replaced the five-hundo bonus with a $25 award and “thanks e-cards” that were way better than anything from Hallmark simply because Tim Flynn probably included a personalized message.
And you, simply, cannot put a dollar figure on that.
The most devastating part of the Standing O kibosh was that the trophies — which could easily qualify as a “blunt object” at a crime scene — were no longer handed out. These, understandably, are most coveted of all KPMG tchotchkes.
Well now, according to accountants familiar with the matter, the firm has reinstated the Standing Ovation for reasons that we can only speculate. It will be reserved for those Klynveldians that “go above and beyond” the call of their duties. Again, we can only speculate as to what this actually entails. Considering the fact that the hours you’ve been putting in for the last month or so have been expected, it may just mean that you have to try a little bit harder.
The reintroduction is being received tepidly, as one source told us:
Kinda meaningless to me. They don’t hand them out. Except for managers that want to get laid by younger staff.
Seconded by another source:
Just because they bring them back, doesn’t mean any partners plan on approving them. – “Oh, I nominated you for a standing ovation, but it didn’t get approved! It’s the thought that counts though, amirite?”
Another source saw it as too little, too late:
“Do they really think $500 is going to stop a mass exodus of [people] from leaving? Perhaps they should have thought about that when they didn’t give raises.”
Despite the vague qualifications for the award, it’s good to see TPTB reinstating the bonus for the sake of morale/bribery/empty hope. Now go get yourself one!
According to a tip we received, less than “special” people at GT are receiving bonuses too:
Based upon my salary [the bonus is] about 2%….[I’m] assuming the criteria for a bonus wasn’t as stringent as Nusbaum made it out to be, or the pool was larger than we were led to believe. Based upon the call with Nus, I figured only 5.0 would get a bonus.
A pleasant surprise for some. This particular tip came out of the Southeast region. Apparently these conversations are occurring circa now so continue to keep us updated for your city or region.
I’m a senior in Chicago moving into my fifth year, and I’m one of those 2s who got bumped to a 3, got a zero raise and a $1000 bonus. I’m apparently a “3 -plus” as they had “3-minuses” also and those folks did not get bonuses.
Also got a tip that compensation discussions are set to begin in the Northeast for the ERS and Tax practices soon so we recommend watching Leaving Las Vegas or The Reader immediately prior to your meetings to cushion the blow.
E&Y’s Dallas office sure appreciates their new associates because they’ll be the only ones getting pay raises this year. It’s either that or they want to the put them in the position for additional ridicule until the fresh batch of new associates comes on.
According to the tip we received, the announcement was made at the townhall meeting today and this is first office of any firm that we’ve heard of to make an official announcement to employees that pay was being frozen.
Those being promoted to a new level (e.g. SA to Manager) will receive bonuses but no details were given. We’ll update as we learn more.
We’re not trying to ruin your Friday but at the very least, this might encourage some of you to get your drink on a little earlier than planned.
Rumor received late last night that a Big 4 CEO was asked about compensation and bonuses at some grin n’ grip and he responded that the compensation adjustment and bonus pools for all the Big 4 firms was going to be down 90%.
This fits together nicely with the rumors of freezing and/or cutting pay that have been going around. Okay, now try to get some work done or figure out where you’ll be having that three martini lunch.