December 11, 2018

Here’s Your Open Thread for EY Compensation Discussions (2017)

ernst young equifax

Okay, okay. I’m sure some people inside the House of Black and Yellow need a break from writing thoughtful emails to Mark Weinberger. It seems that yakking about EY compensation is the perfect way to do that.

The first requests came in yesterday and have been picking up steam today. A tip from yesterday notified us that the compensation discussions were off and running:

I think comp conversations should start today. I saw one person on fishbowl post. Assurance Senior in the West, 3 rated and raise of 5.8%. So not spectacular.

Folks weren’t happy with [performance based bonus] either. Heard it was around 1.6% for 3s.

Overall I think expectations are so-so. A lot of messaging that we didn’t meet vision 2020 goals this year, although we had growth in some areas. So hard to predict.

We will see….

Another tipster echoed the “wait and see” attitude, especially since PwC set the pace already:

Our [diversified staff group] members are getting their compensation: 4 rated senior 1 to senior 2 tax, Midwest 7.3%. So far not the greatest given our scoping of PWC raises being much higher, time will tell though

It must be difficult for EY people to watch the numbers from PwC roll in. Every June, when the PwC thread rolls, there has to be a lot of partners who look at the numbers and think, “Oof. Our people won’t be getting that.” Alternatively, there are probably some years where EY brass is excited to spring compensation news on their people because they will match the numbers that PwC people are seeing.

But being the second Big 4 firm to have comp discussions has to be a tough spot. If you’re first, you get to set the bar; if you’re last, like KPMG, you have plenty of time to adjust your plans. But going second is never fun. You’re always going to feel the pressure from the pacesetter. If you’re the type of firm that doesn’t mind not going first and have the confidence that the financial rewards you give your employees will satisfy them, regardless of what your competitor will do, then I suppose it’s no big deal. Is EY that type of firm?

¯\_(ツ)_/¯

So let’s get to it. Once again, here’s your checklist:

  • Position, promotion (if applicable)
  • City (preferred) or region
  • Line of Service
  • % Raise
  • % Bonus (if any)
  • Old & New Base

Have fun, everyone.

Other compensation threads:

Grant Thornton
BDO
PwC

If your firm is holding discussions about performance reviews, raises, bonuses, et al. this summer, email [email protected] with the details.

Image: Quentin Michon/Wikimedia Commons

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Forbes: Senior Accountants Pay Rising in the Recession

Feel free to call bullshit on this because we’ve heard rumors about pay freezes at KPMG (they are getting back to us on this) but according to Forbes, senior accountants rank at #11 for “Hot Jobs Where Pay is Rising” in the recession. The list states median pay at $60,300. Not only that but apparently, there aren’t enough of you senior accountants:

There’s a shortage of senior accountants right now, and the recession has actually provided a chance for them to revive client relationships, believes Mark Koziel, senior manager of firm practice management at the American Institute of Certified Public Accountants. “As long as there’s small-business America, as long as there’s big-business America, there will still be a need to do auditing and tax returns,” he says.

This strikes us as strange as there have been layoffs at several firms. The need for auditing and is obvious but those of you left are probably doing the work of two or three people.
UPDATE, July 22, 2009: KPMG got back to us re: pay freezes and had no comment