PracticeConsultingKPMG says no to big golden handshakes

KPMG says no to big golden handshakes

KPMG has become the first Big Five to publicly commit itself against the handing out of massive 'golden handshakes' worth thousands of pounds to graduate recruits.

The move comes in the wake of reports that reveal Andersen Consulting is set to offer graduate recruits £10,000 singing on bunuses.

Big bonuses for graduates who are yet to complete a days work reflects, according to AC, the growing competition to net the best recruits.

But KPMG’s director of graduate recruitment, Keith Dugdale, said the firm ‘never has and never will’ offer such extravagant payments to graduates.

He said the most KPMG would run to was a £2,000 interest-free loan repayable over two years to help with paying students debts.

‘The market conditions do not make it necessary to throw vast sums of money at recruits,’ said Dugdale.

‘It doesn’t make economic sense,’ he added.

However he said competition for the elite graduates was fierce.

‘At the very top, with a small number of graduates, there’s huge competition.’The route to large cash payments may have been waymarked in the US where large bonuses have become common place.

In the UK, competition for the best graduates has recently been intensified with the deluge of start-up dot.coms offering large sharte options.

The City may be in the process of beginning to set itself apart by offering hard cash.

At Andersens UK managing partner Ian Watmore said the payments reflected a ‘battle’ between banks, accountancy firms, management consultants and dot.coms for the best recruits.

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