Senior PwC staff in the UK who are not on track to become partners will be offered a new “managing director” title, as the Big Four firm aims to retain top employees who are not being admitted to its £1 million-a-year partnership.
According to sources cited by the Financial Times, PwC introduced this new role to retain experienced accountants and consultants and attract external talent with higher salaries. However, managing directors will not be eligible for promotion to partner, making it a distinct career track.
This move highlights the efforts of Big Four firms to expand their workforces while maintaining the profit pool shared among partners. In recent years, PwC leadership has been under pressure to keep average partner pay near £1 million. This year, PwC’s UK partners earned an average of £862,000, a 5% decrease from the previous year.
Unlike its Big Four competitors—Deloitte, EY, and KPMG—PwC does not have a non-equity partner tier in the UK, a structure often seen as extending the path to partnership. PwC has the largest equity partnership in the UK, with 1,036 members, compared to Deloitte’s 749, EY’s 900, and KPMG’s 470.
The new “managing director” role will allow PwC to offer higher salaries to external hires who do not meet all the partner criteria, according to someone briefed on the plan. However, it is not expected to significantly alter the partnership structure in the near term.
PwC partners were informed of the new title during a recent “away day” where Marco Amitrano, the firm’s new senior partner, laid out his business strategy. This initiative is part of Amitrano’s larger overhaul of PwC’s UK operations, which includes the creation of a standalone technology and AI unit and the reorganization of other service lines, impacting around 2,700 staff and partners.
In a statement to the Financial Times, Amitrano said: “Our new MD grade will give us more flexibility to recruit and retain key talent. The grade is distinct from equity partner and opens up a new career path for high performers. It will create opportunity and give us greater agility in the market.”