The accounting world is in turmoil, and the numbers don’t lie. Partner promotions at the UK’s Big Four firms—Deloitte, EY, KPMG, and PwC—have plummeted to a five-year low, signaling a seismic shift in how these giants are navigating an uncertain future. But here’s where it gets controversial: Is this a strategic move to protect profits, or a sign of deeper trouble brewing in the industry? Let’s dive in.
For the 2025 cycle, just 179 professionals were promoted to partner status across these firms, a sharp drop from the peak of 276 three years ago. This decline, based on Financial Times analysis of reports, press releases, LinkedIn posts, and Companies House filings, reflects a broader struggle as demand for consulting services slows, squeezing revenues. Deloitte and PwC recorded their lowest partner promotions in five years, while EY promoted less than half its 2022 total. KPMG, however, broke the trend by resuming promotions after a multi-year pause.
Why the sudden slowdown? The Big Four are under pressure to safeguard profits for their roughly 3,000 equity partners. With advisory services in decline, firms have slashed promotions, pay rises, bonuses, and even headcount. But this isn’t just about cost-cutting—it’s about survival in a rapidly changing landscape. During the pandemic boom, these firms went on a hiring and promotion spree, but now that bubble has burst, leaving them scrambling to adjust.
Take Deloitte, for example. They promoted just 60 partners this year, down from 124 in 2022. PwC named only 40 equity partners, nearly half the 2022 figure. EY added 34, down from 74, while KPMG promoted 45, a modest rebound after years of stagnation. And this is the part most people miss: Despite fewer promotions, average partner payouts have hit record highs, with KPMG partners earning £816,000 and Deloitte’s topping £1 million. So, are these firms prioritizing the few at the expense of the many?
Laura Empson, professor of management at Bayes Business School, offers a thought-provoking perspective: The decline in promotions isn’t just about current performance—it’s about the future. With generative AI poised to disrupt core accounting activities, firms are hesitant to commit to partners whose long-term income potential is uncertain. “The future is particularly hard to foresee,” she notes, raising a critical question: Are the Big Four sacrificing growth for short-term stability?
Financial results paint a mixed picture. Deloitte’s UK business saw its first revenue decline in 15 years, while PwC’s growth flattened. EY managed a modest 2% rise in a “challenging market,” and KPMG reported a 1% increase, a sharp slowdown from 9% in 2023. Yet, KPMG’s overhaul under Jon Holt—including culling senior ranks in 2023—has left its partnership at its smallest in two decades.
Here’s another twist: Overall equity partner numbers have decreased for the first time in five years, dropping by about 80 to roughly 3,050. To retain talent without sharing partnership spoils, Deloitte, EY, and KPMG have introduced a “salaried partner” rank. PwC, meanwhile, remains equity-only but created a “managing director” title to keep top talent. Is this innovation, or a bandaid on a deeper structural issue?
As the Big Four navigate AI, economic uncertainty, and shifting client demands, one thing is clear: The partnership model is under the microscope. Are these firms adapting wisely, or are they risking their long-term health for short-term gains? What do you think? Let’s spark a conversation—share your thoughts in the comments below. The future of accounting may depend on it.
