PwC partner pay revealed in annual report after tax leaks scandal
The six-figure average income of PwC partners have been revealed in the firm’s annual report as it tries to repair its image damaged in the tax leaks scandal.
PwC Australia has revealed audited financial results for the first time as it tries to restore its reputation as an opaque operator in the wake of the tax leaks scandal.
The firm reported a 15 per cent drop in full year profit to $619m for the period ended December 31, 2024, with partners receiving an average income of $767,000.
Partner income has fallen since it emerged that confidential Treasury policy was leaked to international clients, but PwC did not provide like-for-like numbers. It did reveal, when asked, that in the year ending June 2023 partner income fell 12.5 per cent from the previous year, and in June 2024 a further 12.7 per cent.
Profit dropped after various government departments black-listed PwC following what it has described as historical misconduct. Not only was information about proposed law changes designed to crack down on international firms evading tax improperly shared, it was used to pitch for clients.
Thescandal resulted in two senate inquiriesalong with state investigations.
PwC International then parachuted in one of its offshore lieutenants Kevin Burrowes to run the Australian division, who promised a clean slate, the sale of its consultancy division, and better governance.
Mr Burrowes was accused of misleading parliament for failing to reveal under questioning an additional $1.2m salary he was receiving from the international firm on top of his disclosed pay of $2.8m from PwC Australia. ALP Senator and committee chair Deborah O’Neill called this a “secret side payment”.
Now, in a first for any of the big four professional services firms in Australia, PwC has published its audited financial results and remuneration as part of an inaugural annual report.
Mr Burrowes’ total remuneration in 2024 was $3.37m. The next highest earner was Rob Silverwood, who announced his departure at the start of the year, on $2.27m, followed by Sue Horlin on $2.16m.
Also recorded was $154m from discontinued operations, presumably the consultancy division it sold to Allegro Funds Management which has been renamed as Scyne Advisory.
The firm borrowed $200m most of which is allocated for working capital.
The loan means PwC has an unusually high gearing of 66 per cent and a working capital ratio of 1.13, which if PwC were a company rather than a partnership, may worry a board.
Return of equity was 6 per cent, double the previous year but lower than the industry standard of 15-20 per cent.
The annual report highlights the extensive changes PwC has implemented following the “Commitments to Change Action Plan” developed in response to Ziggy Switkowski’s independent review of the firm’s culture, governance and accountability in 2023.
In a statement, Mr Burrowes declared the annual report disclosure a “positive milestone” for the firm, which reflected “PwC’s commitment to transparency”.
“In a period of change, growth and reform, we have set the foundations for a firm that is well-managed, grounded in ethics and integrity, with culture at our core,” he said. Mr Burrowes who was not available for an interview.
“We are delivering a new level of transparency for the firm, giving our clients, people and stakeholders an unprecedented level of knowledge around our firm’s performance, governance and operations,” he said in a statement.
“This annual report reflects a year of progress for PwC Australia. We introduced major governance reforms, armed our people with the latest developments in artificial intelligence and launched a new strategy that puts culture at the heart.
“These are all important steps, as we seek to realise our vision of becoming the pre-eminent professional services firm.”
As the firm continues its transformation journey, chair John Green acknowledged in the annual report that while progress has been made, “our transformation isn’t complete, we remain focused on prioritising governance, culture, and client-centricity”.
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Originally published as PwC partner pay revealed in annual report after tax leaks scandal
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