The profit share system at PwC has seen more than 1,000 of its former partners share a total windfall of £100m after record profits this year
Certain retired partners are paid a share of annual profits via the firm’s annuities system, which is in place at each of the Big Four.
PwC does not disclose exactly how much each former partner receives as part of the scheme, but in the year to 30 June, the average payment per member was £90,000, as first reported by the Financial Times.
John Hitchens, who currently sits on the conduct committee of the FRC, is among the beneficiaries. He retired from PwC in 2014 after 26 years at the firm.
He declared his “retired partners allowance” to the FRC in its register of interests. The committee on which he sits oversees the regulation of accountants.
PwC declined to comment on Hitchens’ payment. The FRC has been approached for comment.
PwC says that certain former partners are paid pension annuities “and other post-retirement payments”, as are the surviving partners and dependents of deceased former partners.
Although the firm’s annual report references the annuities, they are not recognised in the firm’s financial statements because they are personal obligations of the individuals rather than of the LLP.
Sourced from ICAEW - written by Frances Ball