BDO hands partners a big pay rise after a record year

Partners at BDO have been given a 12 per cent pay rise after a record year for Britain’s fifth-largest audit firm, despite the industry regulator’s scathing review of its work.
For the first time, BDO’s annual revenue surpassed £1 billion having turned over £1.02 billion in the 12 months to the end of June, almost 9 per cent more than the £935 million it posted in its previous financial year.
Growth was driven by all its divisions. Its consultancy arm bucked the wider market slowdown as revenues from that unit rose 10.2 per cent to £342 million, while the tax business grew 7 per cent to £241 million.
BDO’s audit division reported an 8.4 per cent increase in fees to £433 million; some of which stemmed from higher prices but also from new client wins, including Citibank Europe and Workspace, the office landlord.
That was despite the Financial Reporting Council, the audit industry watchdog, lambasting BDO over summer for its “unacceptable” work in its annual report.
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“We’re disappointed with those results and we own those results,” Mark Shaw, who took over from Paul Eagland as BDO’s UK managing partner last month, said. “Over the last three years we have invested about £250 million back into our business, a very large proportion of which has been related to quality and audit quality. That’s a journey that will continue under my watch.”
That investment included a record £120 million last year, which hit partners in the pocket. BDO’s investment totalled closer to £60 million this year, meaning partners could share in more of the spoils.
On average BDO’s 466 equity partners were paid £681,000 for their work over the past year. It was their first pay increase since 2021. For comparison, EY partners, the lowest paid out of the Big Four firms, received £761,000 last year.
BDO is the nearest challenger to the Big Four of Deloitte, EY, KPMG and PwC. It has grown rapidly and now employs about 8,000 people in 18 offices across Britain.
As well as audits, BDO’s team of accountants and consultants advise on everything from tax and regulatory changes through to mergers and acquisitions and sustainability. It specialises in medium-sized businesses.
“We’re really lucky that we act for mid-market firms that are entrepreneurial, ambitious and growing businesses,” Shaw, 55, said. “That’s why our business has been more resilient [than others in the sector] because of our clients’ resilience.”