The AFR yesterday published a fascinating insight into the financial state of the Big4 in 2011. In summary, things are looking much better. Graduates and talented laterals are very much back in demand and, pleasingly, we think this will translate into healthy bonuses and pay rises this year. As always, we rely on our Big4 spies to send us salary/bonus news (so dont forget to email us – news@firmspy.com).
The AFR interviewed the chiefs of each of the Big4.
KPMG Chief Geoff Wilson obseved that many of the firm’s clients were bullish:
There’s a pent-up demand by many clients to do deals… In my conversations with clients, whilst they’re conscious of uncertainty and volatility, there is an underlying confidence that the Australian economy will continue to grow.
Mr Wilson noted that KPMG had already begun to see strong growth in advisory areas, particularly in business performance and technology. Showing his “green” credentials, Wilson also told the AFR:
Business has quickly recognised that growing in a sustainable way is not only the right thing to do, it’s actually good for business.
Meanwhile, PwC Chief Executive Mark Johnson told the AFR that in the second half of the 2010 there were double digit results for much of consulting, risk and provate clients:
Our business has grown in a number of key industries including financial services, government services, energy and resources, private clients and the middle market… It’s not surprising that there is a renewed and healthy focus on risk includingthe alignment of good risk practices with the business strategy.
The article reports that PwC grew its staff over the past year and graduate intake is expected to increase by 10% this year, growing from its total of about 700 grads over the last two years.
Deloitte chief Giam Sweigers is “similarly optimistic”, predicting double-digit revenue growth from the firm this year. Mr Sweigers is setting its hopes on its data analysis services:
Data analysis is currently changing the face of professional services… it’s quite remarkable what you can do.
Rounding out the Big4, Ernst & Young chief executive Rob McLeod said several areas of the firm were “going gangbusters”. He told the AFR that the firm is expecting to increase its graduate intake by 20% this year, commenting:
We’re looking forward to better times for the next three years.
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To any prospective KPMG grads out there – DON’T DO IT! That place is circus (it’s actually run by clowns and monkeys). If the heads of the respective firms are admitting to good times ahead then it must really be good times. The last few years they were predicting the end of the world even while their revenues were actually increasing.