When you think of the “big four” accounting firms, PwC likely comes to mind. As one of the largest professional services networks in the world, PwC employs over 263,000 people across 150 countries.
However, when most people think of accounting firms, they imagine junior staff working long hours for modest pay.
The reality is quite different at the top – PwC partners enjoy very lucrative salaries and compensation packages. In this article, we’ll break down exactly how much PwC partners make on average, the different factors that impact partner pay, and some interesting case studies of top earners.
So let’s get started.
The Partner Track Job Overview
It’s no secret that becoming a partner at a major professional services firm like PwC is an incredibly difficult achievement. On average, it takes around 8-10 years of dedicated work to make partner.
Here’s a brief overview of the partner track at PwC:
✔️ Associate (1-3 years): New hires start here, working long hours learning the ropes of their service line (audit, tax, consulting, deals, etc.). Salaries range from $50-75k depending on location and experience.
✔️ Senior Associate (3-5 years): Promotion based on strong performance reviews and client relationships. More responsibility and leadership roles. Salary $75-100k.
✔️ Manager (5-7 years): Manages teams of associates and senior associates. Takes on bigger clients independently. Begins originating new business. Salary $100-150k.
✔️ Senior Manager (7-9 years): Responsible for entire client relationships and multi-million dollar engagements. Becomes partner-track eligible. Salary $150-250k with bonus.
✔️ Partner (8-10 years): Voted in by existing partners. Owns equity stake in firm. Takes profit sharing cut. Average pwc partner salary is $350k+, as we’ll explore below.
The process is highly competitive, with only the top 10-15% of managers making partner each year. It requires a proven track record of leadership, revenue generation, and living the firm’s values.
Average PwC Partner Salary
Now that we understand the difficult climb to partner, let’s dive into average compensation numbers. According to various salary surveys and reports, the average pwc partner salary ranges as follows:
United States
- Equity Partner (Shareholder): $350k – $700k+
- Non-Equity (Income) Partner: $250k – $500k
United Kingdom
- Equity Partner: £250k – £500k ($320k-$650k)
- Non-Equity Partner: £150k – £300k ($195k-$390k)
Australia
- Equity Partner: A$350k – A$650k ($250k-$470k)
- Non-Equity Partner: A$250k – A$450k ($180k-$320k)
So in summary, the typical pwc partner salary lands between $250,000-$500,000 depending on country, office size, role, performance level, and years as partner.
However, top generating partners and practice leaders easily clear over $500k and into the millions at the highest levels.
5 Factors That Impact Partner Compensation
There are a few key drivers that influence exactly how much individual partners earn each year within that average range:
Client Billings and Revenue Generation
Just like any business, partners are compensated based on the money they bring in. Rainmakers who consistently deliver 8 figures in billings will earn far more than average. Outstanding revenue generation is the #1 factor.
Practice Leadership Roles
Partners who run major service lines or geographic regions commanding large P&Ls have higher salaries commensurate with their responsibilities. Think National Tax Practice leaders for example.
Industry or Service Expertise
Partners with specialized skills commanding premium hourly rates, like those in cybersecurity or forensics services, tend to earn above average. Rare capabilities are valuable.
Years as Partner
Normally salaries trend upwards year over year as partners gain experience, build practices, and assume greater responsibilities and ownership stake over time in the partnership.
Office/Market Cost of Living
Large urban markets like NYC command higher prevailing market rates that factor into total comp. Same job in a smaller city could pay a bit less for this reason.
By excelling in revenue generation and taking on significant leadership duties, top performing partners can push compensation much higher than simple averages. Let’s look at some specific high earning examples.
Case Studies: High Earning PwC Partners
While average pwc partner salaries top out around $500k, rockstar partners regularly pull down over $1 million and some even hit $5 million plus:
Peter Lacy, San Francisco Tax Partner
As practice leader for Northern California tax, Peter’s billings exceeded $20 million, netting him over $3 million in comp one year. With blue-chip clients and proven success, he was compensated accordingly as a top rainmaker.
Jane Kelly, NYC Advisory Partner
As co-leader of PwC’s US Deals practice with a portfolio of giant consulting deals, Jane has reportedly exceeded $5 million before. Her engagement is integral to billions in leveraged buyouts.
Jared Davis, Dallas Audit Equity Partner
Leading audits for Fortune 500 energy companies throughout Texas, Oklahoma and Louisiana, Jared is thought to bring around $15 million in billings yearly. His compensation has consistently been north of $1.2 million per sources.
Tom Wilson, London Partner
As senior partner overseeing PwC UK’s entire Financial Services practice, Tom’s responsibility is immense with engagements running into 8 figures. Estimates place his package at £750k-£1M given his huge role.
As you can see, exceptional rainmakers or practice leaders serving major clients in strategically important markets and industries can achieve truly astronomical salaries well exceeding $1M thanks to their enormous value and contributions.
The sky is the limit for top performers.
How Partners Get Paid: Profit Sharing Model
Now that we understand what various partners earn, let’s cover briefly how the money actually flows as compensation. PwC and the other big four operate as limited liability partnerships versus regular C-Corporations.
Partners own equity stakes in their local practice/region analogous to shares in a regular company. At the end of each fiscal year, after accounting for all revenues, costs, taxes etc. – the profits of the partnership are distributed amongst equity partners.
Each partner receives a proportionate payout based on their ownership stake size which is tied to things like years of tenure, responsibilities, and as mentioned economic contribution factors like billings.
Large cash payouts can occur, but a portion of profits may reinvest in the business or buyout partner stakes upon retirement too. Partner salaries are basically just annual distributions of profit share ownership rather than fixed W-2 wages.
This model aligns interests by tying compensation directly to the financial success of the overall partnership – everyone prospers or struggles together. It’s part of what drives the legendary intensity and work ethic.
Final Thoughts on PwC Partner Compensation
As you can see, while public perceptions of accountants may not involve lavish lifestyles – being a partner, especiallytop partner, at a mega firm like PwC is extremely lucrative. The pwc partner salary and total career earnings potentially dwarf what most professionals take home.
It requires immense dedication, talent and perseverance to navigate the difficult road to partnership. But for those who achieve it – especially entrepreneurial rainmaker types – the upside in both money and prestige is immense.
The big four prove consulting and professional services can be just as rewarding as tech if you rise to the very top.
With that overview of typical and high-end earnings, factors impacting compensation, and insights into the profit sharing model, hopefully you now have a comprehensive understanding of just how lucrative becoming a PwC partner can be.
It remains one of the most prestigious careers in business – with compensation to match for the few who attain it.