Business
PwC introduces 'Managing Director' position to retain top employees
PwC introduces the position of Managing Director in the UK to retain top employees and attract external talent.
The accounting firm PwC will introduce a new "Managing Director" position in the UK to retain experienced staff who are not set to become equity partners. This new career model aims to help retain key personnel among auditors and consultants while also attracting external talent with higher salaries.
Internal sources report that Managing Directors will not be eligible for promotion to Partner. The introduction of this role underscores PwC’s effort to align workforce growth with the protection of the partners' profit pool. In recent years, executives have faced pressure to maintain the average partner income close to one million pounds. This year, the average payout to PwC partners in the UK decreased by 5 percent to 862,000 pounds.
In contrast to its Big Four competitors Deloitte, EY, and KPMG, PwC in the UK does not have a non-equity partner tier, which is often seen as a means to extend the path to partnership. With 1,036 members, PwC has the largest equity partnership among the Big Four. Deloitte has 749 equity partners, EY approximately 900, and KPMG around 470.
The new managing director position allows PwC to pay higher salaries to external candidates who do not meet all the criteria for a partnership. A person familiar with the plan said: "It will not change the partnership structure as it does in other companies—at least not in the near future.
The partners were informed about the introduction of the new role during an "away day" where the new Senior Partner Marco Amitrano presented his strategy for the company. Amitrano also plans a comprehensive restructuring of PwC's UK business, including the creation of a standalone technology and AI unit as well as the reorganization of other business areas. These changes affect around 2,700 employees and partners.
In a statement, Amitrano emphasized: "Our new MD position gives us more flexibility to recruit and retain key talent. The role is distinctly different from that of an Equity Partner and opens up a new career path for high-performing employees. It will create opportunities and make us more agile in the market.
