Bonus Watch ’13: KPMG’s “Early Career Investment Bonus” Payouts Start This Week

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 the deferment of their bonuses over the course of three years. New seniors were kind of excited about the possiblities; third-year SAs were not. 

The days and weeks and busy seasons have rolled by as they tend to do and last week, a source at KPMG reminded us that the payouts start tomorrow. That matches the date in the written communication from KPMG CEO John Veihmeyer and then-Vice Chair Henry Keizer that we published back in July 2011.

So unless there's been some kind of Scott London clawback, 1, 2, and 3-rated senior associates from 2011 that elected to take a payout, will receive $4,000 tomorrow. Less applicable taxes of course. If you're not getting a payout because you're deferring your bonus, good luck to you — you'll need it. If you're not getting a payout because you weren't rated a 1, 2, or 3, then you're probably not at KPMG any more. If by some small miracle you are still of the House of Klynveld, then I suggest you walk around looking for someone willing to kuddle.

How are people responding? Well, when we asked one source — a senior manager, who didn't qualify for ECIB — whether the SAs were "grumbling or do they need to curb the enthusiasm" the person responded:

They're not grumbling. But they might be rubbing people above them the wrong way who didn't qualify for it. 

That's not exactly a ringing endorsement of the plan, but it's not a condemnation either.

Since we're on the topic of money, there has to be some opinions out there. Feel free to share them now. 

Related articles

Auditor Swap: Papa John’s Dumps KPMG For Its Ex, Ernst & Young

Sometimes the grass isn’t always greener on the other side. Pizza chain Papa John’s must have realized this as it’s dropping KPMG as its independent auditor in favor of EY, which audited the company’s financial statements from 1990 to 2017. EY will take over Papa John’s external auditing duties for the fiscal year ending Dec. […]