In 2002, Rake’s income dropped from £1.7m to £1.45m. His share from the sale of KPMG’s consulting arm – £153,000 – boosted his total income to £1.6m.
The year was also rough for the firm’s other partners, with operating profits per partner falling to £352,500 compared to £441,600 in 2001.
Altogether, the partners earned an average of £590,400, if the windfall from the sale of the consulting arm has been taken into account.
The economic downturn hit KPMG hard, with operating profits dropping 21% to £212m, although its revenues held steady at £1.2bn. The drop led to a restructuring programme which saw more than 1,000 redundancies.
KPMG was also faced with embarrassment as it saw its planned merger with Andersen collapse after a highly publicised announcement. Other highlights in 2002 included the change of its legal status to a limited liability partnership, and the sale of its UK consulting activities.
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