How much do Big 4 partners get paid?

KPMG UK released their results last month for their most recent accounting period and they showed a fall of 10% in pay for the KPMG partners when compared to the previous year.

Although the firm’s revenue rose by 5% to £2.2 billion, it’s profit fell to £301 million.

The firm wrote off a number of technology investments.

KPMG, like the rest of the Big 4, have invested heavily in technology companies in an attempt to stay at the forefront of technology.

Unfortunately for KPMG, not all of their investments were successful. Bill Michael, the Chairman of KPMG, highlighted one investment that hadn’t done so well – KPMG had committed £3 million to Flexeye, a tech company that analyses large amounts of data and it hadn’t proved to be the wisest investment.

Whilst profits fell, it hasn’t all been bad news for KPMG as their audit practice grew by 10%.

Back to the average pay of the KPMG partners though and although their average pay fell by 10% I’m sure that the partners will still be able to afford to buy a sandwich for lunch.

The average pay for the KPMG partners was £519,000 each.

That’s not too bad is it?

But how does it compare with the average pay from the partners of the remaining Big 4.

The most recent reported results show the following average pay per partner:

Deloitte – £865,000

EY – £677,000

pwc – £652,000

It looks like Deloitte partners will be having the more expensive sandwiches for lunch.

Splash out on a new purchase

The Swedish furniture giant IKEA has started the year with a splash by running a magazine advert that offers a discount on a baby’s crib to pregnant mothers.

Now, whilst in itself there’s nothing unusual about offering promotions to certain segments of the market, what is unusual is how the promotion is claimed.

The magazine advert ran in an issue of the Swedish lifestyle magazine Amelia, and the full-page advert read: “Peeing on this ad might change your life.”

Yes, there was a patch on the magazine which was an actual pregnancy test. If you peed on it and were pregnant then a discount code would be revealed which would provide you with a discount on the IKEA crib.

A couple of points spring to mind.

Making sure you’ve finished reading the magazine before trying to reveal the discount code is one of them and also an online order would probably be better than taking in the “code voucher” to your nearest IKEA store is the second.

Having said that you have to admire the ad agency behind the novel idea.

Akestam Holst were the ad agency that came up with the idea and they told adweek that “In order to make the interactive functions of this ad work in reality, we had to make several technical advancements. The pregnancy test strip was used as a starting point, which relies on antibodies that bind to the pregnancy hormone hCG, resulting in a color change. For scaling up of this technique and adopting it to the physical format of a printed ad, Mercene Labs has used their experience in development of surface active materials for microfluidics and medical diagnostics. Careful selection of materials, together with a controlled capillary flow have been crucial for the success of this project. Technical advancements made during the work with this campaign have the potential to improve medical diagnostics.”

So all in all, a very unusual advert and whilst some people thought it was a hoax, it is true and the pregnancy test (and discount code) both work.

In summary, it is true and it is not taking the ….

(Let’s just say it’s not taking the mick).

Go to jail for another…

It’s always best to keep on top of your tax affairs. Submit your returns on time and make sure they are completed accurately to the best of your knowledge is the best approach.

Not everyone agrees with this approach though and millionaire businessman Peter Duffield from the UK took a different approach.

As a result, he’s currently serving a 4-year jail sentence after failing to pay £1.3 million in taxes but it looks as though things may be getting worse for him.

The background to the case is that he failed to submit a single tax return for 7 years. He told investigators from the tax authorities that he wasn’t a “paperwork person”. To be honest, that isn’t a great excuse.

He was jailed for 4 years but further investigation by the tax authorities has found that he failed to declare profits on the sale of 3 properties and as a result underpaid tax.

This was a pretty significant amount of tax that was underpaid and a confiscation hearing at Central Criminal Court ordered him to pay £1,232,189 within 3 months.

The unfortunate thing for Mr Duffield is that if he doesn’t pay the additional money within 3 months then he will have to serve an extra 8 years in jail.

The even more unfortunate thing for Mr Duffield is that if he doesn’t pay the additional money within 3 months he will be jailed for 8 years and then after the additional 8 years he will still owe the money to the tax authorities.

In conclusion, it’s always best to stay on top of your tax affairs…

Does this mean Way Too Fat?

January is one of the most popular months for people looking to lose weight. New Year resolutions often revolve around getting fit or dropping a kilogram or 2.

Losing weight can be big business for companies.

Weight Watchers is one of the largest and most successful companies involved in the business of losing weight. They were founded more than 50 years ago in the living room of entrepreneur Jean Nidetch in Queens, New York and since then have grown to a huge company.

They now have over 1 million active members who attend approximately 32,000 Weight Watchers meetings around the world.

That’s a big organisation and they have just signed up a big star to help with their promotions.

The American music producer DJ Khalad is big in a number of ways.

Firstly, he is one of the largest stars on social media (he has nearly 4 million Twitter followers).

Secondly, he is large in terms that he is overweight.

DJ Khaled isn’t alone in trying to lose weight in 2018 but what makes him different is that Weight Watchers have signed him up as a social media ambassador. He will be paid an undisclosed sum to follow the new Weight Watchers Freestyle programme and will document his progress on his social media accounts.

This is obviously good news for Weight Watchers because it will be great publicity if he loses weight (we’ll ignore for now what happens if he doesn’t lose weight…).

The market also thought it was good news as the shares in Weight Watchers shot up 8% on the New York stock exchange the day his appointment was announced.

Maybe it’s best not to go out for a big meal to celebrate though…