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The six-figure average income of PwC partners have been revealed in the firm’s annual report as it tries to repair its image damaged in the tax leaks scandal.
The firm reported a 15 per cent drop in full year profit to $619m for the period ended December 31, 2024, with partners receiving an average income of $767,000.
Partner income has fallen since it emerged that confidential Treasury policy was leaked to international clients, but PwC did not provide like-for-like numbers. It did reveal, when asked, that in the year ending June 2023 partner income fell 12.5 per cent from the previous year, and in June 2024 a further 12.7 per cent.
Profit dropped after various government departments black-listed PwC following what it has described as historical misconduct. Not only was information about proposed law changes designed to crack down on international firms evading tax improperly shared, it was used to pitch for clients.
PwC International then parachuted in one of its offshore lieutenants Kevin Burrowes to run the Australian division, who promised a clean slate, the sale of its consultancy division, and better governance.
Mr Burrowes was accused of misleading parliament for failing to reveal under questioning an additional $1.2m salary he was receiving from the international firm on top of his disclosed pay of $2.8m from PwC Australia. ALP Senator and committee chair Deborah O’Neill called this a “secret side payment”.
Now, in a first for any of the big four professional services firms in Australia, PwC has published its audited financial results and remuneration as part of an inaugural annual report.
Rob Silverwood, who announced his departure at the start of the year, on $2.27m, followed by Sue Horlin on $2.16m.
Also recorded was $154m from discontinued operations, presumably the consultancy division it sold to Allegro Funds Management which has been renamed as Scyne Advisory.
The firm borrowed $200m most of which is allocated for working capital.
The loan means PwC has an unusually high gearing of 66 per cent and a working capital ratio of 1.13, which if PwC were a company rather than a partnership, may worry a board.
Return of equity was 6 per cent, double the previous year but lower than the industry standard of 15-20 per cent.
The annual report highlights the extensive changes PwC has implemented following the “Commitments to Change Action Plan” developed in response to Ziggy Switkowski’s independent review of the firm’s culture, governance and accountability in 2023.
In a statement, Mr Burrowes declared the annual report disclosure a “positive milestone” for the firm, which reflected “PwC’s commitment to transparency”.
“In a period of change, growth and reform, we have set the foundations for a firm that is well-managed, grounded in ethics and integrity, with culture at our core,” he said. Mr Burrowes who was not available for an interview.
“We are delivering a new level of transparency for the firm, giving our clients, people and stakeholders an unprecedented level of knowledge around our firm’s performance, governance and operations,” he said in a statement.
“This annual report reflects a year of progress for PwC Australia. We introduced major governance reforms, armed our people with the latest developments in artificial intelligence and launched a new strategy that puts culture at the heart.
“These are all important steps, as we seek to realise our vision of becoming the pre-eminent professional services firm.”
As the firm continues its transformation journey, chair John Green acknowledged in the annual report that while progress has been made, “our transformation isn’t complete, we remain focused on prioritising governance, culture, and client-centricity”.
PwC Australia’s profit slumped 17 per cent to $619 million in the year to December 2024, according to the first-ever audited accounts of the local big four firms.
The accounts, published on Friday, show that revenues contracted 6 per cent to $2.17 billion. The firm’s 628 partners, who receive the profits of the firm and pay tax as individuals, earned an average of $767,000 in income, up slightly from the firm’s most recent disclosure.
PwC Australia chief executive Kevin Burrowes says the audited report is a ‘milestone’ for the firm.
The audited calendar year figures show the rate at which the firm has been shrinking since its tax leaks scandal has slowed in the six months since its last unaudited results to June 2024. Partner and staff numbers have also continued to contract in the six months between June and December 2024.
The firm is about a third smaller than before the 2023 scandal – which involved a former partner sharing confidential government information internally – but since this time chief executive Kevin Burrowes has been on a lengthy reform process to improve the way the partnership is governed and operated.
A slowdown in demand for once fast-growing consulting services means PwC’s rivals are also likely to post a second consecutive year of lower revenue when they report for the year to June. PwC has shifted to a calendar year reporting period, as this has long been its formal accounting period when dealing with authorities.
More transparent, better managed’
As a private partnership, the big four have limited reporting requirements and do not have an obligation to publish results nor to have these results audited. Releasing an audited financial report is a key part of PwC’s reform process, said Burrowes.
“The publication of our inaugural annual report, including audited financial statements and a remuneration report, is a major milestone as we become a more transparent and well-managed firm,” he said.
“It is a first for our industry, providing an unprecedented level of detail around the firm’s performance, governance and operations. It is a significant step and one of many we are taking as we strive to become the pre-eminent professional services firm.”
Undergoing a formal audit was a new experience for the big four auditing giant and required significant changes to the firm’s internal processes. The audit was conducted by mid-tier provider Crowe Australasia for $761,000.
The report showed Burrowes earned $3.4 million in the year to December. Rob Silverwood, a former senior partner, was paid $2.6 million. Sue Horlin, the head of audit, made $2.2 million, while Rohit Antao, the head of consulting, earned $1.5 million.
Burrowes, as part of his push to rebuild the firm’s standing in the market, has also reoriented the firm’s advisory offering to match changing client needs towards industry experts over general consulting advice.
“There is particularly strong demand in areas such as private capital, mining and critical minerals, as well as superannuation,” Burrowes said.
The fallout of the tax leaks scandal has led to hundreds of PwC partners and thousands of staff leaving the firm, a crackdown on tax advisers and the prospect of wholesale changes to the way the big four firms are regulated in Australia.
External monitoring to end early
A review of PwC’s governance after the tax scandal found serious deficiencies in the firm’s culture and accountability mechanisms. Under Burrowes’ leadership, the firm agreed to make 47 “commitments to change”. These included appointing independent directors, reforming its governance process and publishing audited accounts.
The federal senators who led parliamentary inquiries that helped expose the firm’s failings criticised the move as a “get out of jail free card” that lacked independence, and the firm had failed to demonstrate substantive reform.
PwC Australia remains under the supervised remediation of PwC International. Multiple inquiries, including by the Australian Federal Police, into the actions of former partners relating to the scandal, remain ongoing.
PwC Australia chief executive Kevin Burrowes says the audited report is a ‘milestone’ for the firm. 
