Partner Pay Cuts Might Not Suffice for U.K. Accounting Giants

The major accounting firms shifted into survival mode this week in the U.K., slashing partner pay in the hopes of protecting jobs once they emerge from the coronavirus crisis.

Yet as the pandemic continues to wreak economic havoc, the question is whether more systemic change will be needed. The big accounting firms may have to consider changes to their core business models, refocusing on audit as their more lucrative advisory business withers.

“We might anticipate seeing a re-shaping of those models in favor of the statutorily-based work (e.g. audit, insolvency work) as was the case after the financial crisis,” Mike ...