KPMG and PwC fees revealed
Public Accounts Committee report into MG Rover reveals benchmarked figures on big administrations
A partner at KPMG will cost you up to £540 an hour, whereas one from PwC is a
snip at £425.
The figures are revealed in a cost analysis of PwC’s administration of MG
Rover by the UK commons Public Accounts Committee.
The committee had sought assurance from the DTI that it had got value for
money in providing a bridging loan to MG Rover, £1.2m of which had gone on PwC
fees in a week.
The DTI provided benchmarks from KPMG and Kroll from their administrations of
Courts and Allders respectively.
Partners were charged at £425 an hour at Kroll and PwC, and at £475-£540 at
KPMG.
Senior managers cost £390, £350 and £340 at KPMG, Kroll and PwC respectively.
Support staff come in at only £100, £75-£125 and £68 for the three firms,
again in the same order.
The report into how much MG Rover cost the taxpayer gives a breakdown of the
fees, saying: ‘The basis for fixing the administrators’ remuneration is set by
legislation as a percentage of the value of the property that the administrators
have to deal with, or by reference to the time properly given by the
administrators and their staff dealing with the administration. The creditors
determined that the remuneration of the administrators of the MG Rover Group of
companies should be fixed on a time-cost basis.’
The PAC backed the DTI’s view that PwC’s fees had not been out of line with
usual practice.
Read the
PAC
report into MG Rover here. The figures are on page 46.