My girlfriend is in KPMG’s advisory branch and she and all of her co workers just got their bonuses cut for the year. In addition, KPMG also said they were considering cutting 401k match, pension benefits, and reducing pay firm wide. Are there any other firms that are taking this kind of action? This might just be for advisory.
Would like to clarify that pay reduction is the least likely of the options and it would actually be x% work for x% pay So far, only ey cut bonuses officially but idk if anyone should expect a bonus this year
When did EY announce bonus cut?
US all hands webcast last week.
What % of comp is bonus?
5-15% of base at entry level depending on group. Maybe another 15% once you’re manager+ but less clear on that
COVID-19 must seriously be destroying the economy.
Yes I know another Big4 Advisory group that is doing the same thing as a result of COVID. I cant name names though. Dont want to peddle rumors
Not surprising.
Okay, this is overselling it. Yes, merit bonuses were cut but KPMG has never had a large bonus percentage and has always focused more on larger raises, which are still planned on schedule per the call. Longevity bonuses are still being paid out in May. Retirement, pension, and salary cut are not currently planned, but are options if things get really bad. They were being up front to let us know options, and they said the soonest anything would be implemented if it occurred was July— while noting that none of these additional cuts were planned. Most employees are quite happy with this because having a job that will still be giving raises, paying non-merit bonuses, and promoting on schedule is pretty good.
RSM Audit is safe from cuts so far... I hear there are hiring freezes on the business side (IT here)
Deloitte hasn’t came out and said anything just yet. I’m assuming we’ll know more this next month.
Better than lay-off I suppose
Yes we just finished the meeting. I confirm they are true. salary cut is pending on the situation. This applies to audit tax and advisory