June 24, 2018

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

kpmg global big 4 structure

KPMG celebrated its new year on Sunday, which means compensation discussions are starting. We’ve received several tips in recent days, and a couple of them not expecting much:

Firm is pushing out information that results have been disappointing, overall seeing raises and [variable comp] substantially lower than in prior years.

And:

I was already told that the firm didn’t meet plan and that “there just isn’t that much money to go around this year”.

Since we started covering compensation, I’ve always thought that KPMG was in an advantageous position to its Big 4 rivals. By having its conversations last, there’s really no excuse to not beat one firm’s raises and bonuses. Keep it respectable, at least. Plus, you can tamper people’s expectations with the mentions of “disappointing results” or “slightly behind plan.” This way everyone mopes out of their local office all-hands meeting and goes, “Well, I’m not expecting shit, and now I feel bad.” Then you throw a pleasant surprise in their lap and they say, “Wow, I wasn’t expecting shit, and now I don’t feel bad!” When you’re the fourthiest of the Big 4, you have to go with what works, and I gotta believe that underpromising and overdelivering is a regular go-to tactic for the KPMG brass.

Once again, here’s your checklist:

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

Best of luck, Klynveldians.

More threads from Compensation Season 2017:

Wondering how your new salary stacks up? Compare it to the findings from our 2017 Compensation Report.

Image: mattbuck/Wikimedia Commons

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SHOCKER: Number of Fraud Cases in the Courts is High

In probably the most shocking news of the day, KPMG’s “fraud barometer” reports that the number of fraud cases in UK courts in the first six months of the year are the highest since the firm started issuing the report, 21 years ago.
Here in the states, the big sexy fraud gets all the attention but there is plenty of small fraud to go around. Plus, the bright side is, we’ve haven’t seen anything yet:

“These figures are bad, but the worst is yet to come,” Hitesh Patel, a partner at KPMG, said. “It will be a number of years before the impact of the recession fully feeds through into the fraud statistics.”

So our advice would be for any of you that are nervous about layoffs, look into getting transferred to the forensic accounting practice. You won’t be out of work any time soon.
Record total of fraud cases in court – and worse to come [FT.com]