Ernst & Young chairman nets a million
According to Ernst & Young's annual report released today, chairman Nick Land earned just over £1m last year.
Land’s basic package was pounds 778,597, a 15% increase on the previous year.In addition he received a pension contribution of pounds 175,103 and interest on partner capital of pounds 46,899.
KPMG’s Mike Rake is the only other Big Five senior partner to have revealed his remuneration, which last year reached pounds 1.5m.
For the year ending 30 June 2000 the firm unveiled a total fee income of pounds 772m, including pounds 146.6m from its management consulting arm that was sold to Cap Gemini in May this year.
The continuing parts of the business grew by 16% to pounds 625.6m with partnership profit up 21% to pounds 189.1m and profit per partner up 18% to pounds 424,000.
The results meant that E&Y has fallen behind Deloitte & Touche in the Accountancy Age Top 50, which reported a fee income of pounds 796m this summer.
But the Deloitte’s figures included pounds 107m for CSL, its outsourcing operation which it plans to float off next year. E&Y does not offer a similar service.
The highlight of E&Y’s year was the sale to Cap Gemini with Land alone receiving 9,167 shares in the business, valued in the annual report at pounds 958,465.
Land said: ‘A lot has come to fruition this year, and we are pleased to have executed the MC deal. The sale has gone smoothly and has not disrupted the business.’
But he admitted that the slow down in fee income for management consultancy in the run up to 2000 had been more than anticipated.
‘It was a relief when it picked up again this year as the figures were under scrutiny from both sides,’ he said.
Management consultancy accounted for 20% of the firm’s total fee income, a hole that will not be easy to fill in the short term.
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The firm’s business assurance services grew by 14% over the year, and the corporate finance arm saw fee income rise 22% to pounds 130.2m.
Taxation services brought in pounds 243.2m, an increase of 15%.The firm also reported the successful integration of law firm Tite & Lewis, which had previously been linked to PricewaterhouseCoopers.
AccountancyAge.com last week revealed E&Y’s intention to to register as a limited liability partnership midway through 2001, which was confirmed in today’s report.
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