Most professional services and business advisory firms in Ireland operate a partnership structure whereby leadership and high-performing staff members hold an equity stake in the company.
The leading accountancy, tax and audit firms in Ireland will often announce new partner appointments in batches to bolster the various parts of their rapidly diversifying businesses.
But how do these companies decide on who to promote, how often, and how do they remunerate partners?
Grant Thornton Ireland
Grant Thornton has 73 partners after announcing 15 new partners across audit, advisory, tax and operations in January.
A spokesperson said Grant Thornton continuously reviews its people resource needs, including at partner level.
"Selecting the right leaders for our organisation is a critical decision for the ongoing success of the firm," they continued.
"To that end we have designed a thorough and structured process to ensure we identify the best candidates who align with our strategic goals and values."
The company generally announces new partners each year, with additional partners appointed at other times according to business requirements and/or opportunities.
Grant Thornton has a remuneration committee that consists of five equity partners, including the CEO, that is charged with deciding how to distribute profits among the partners.
Typically, partner pay comes down to role, assessed ability and performance, but a percentage of profit is also allocated based on quality, behavioural and operation metrics, linking performance to the firm's long-term goals.
The recommendations are informed by the risk compliance & professional services division, approved by the management committee and ratified by a partner vote, according to Grant Thornton's 2023 transparency report.
EY Ireland
As of last July, EY Ireland has 153 equity partners, including seven that had been announced over the previous 12 months.
The Big Four giant has since appointed partners Shane McSweeney (head of strategy and transactions), Carol Murphy (head of markets), Eoin O'Reilly (head of AI and data) and Colette Devey (chief risk officer) to leadership positions.
The group, which has annual Irish revenues of €772m and a headcount of 5,196, made 1,415 new hires and 1,804 promotions during its 2024 financial year.
EY aims to achieve 35% female representation at partner level "as quickly as possible," according to managing Frank O'Keeffe.
Partners set goals, receive feedback, plan out their personal development and receive an annual performance, all of which are tied to their recognition and reward, as part of EY's performance management framework, LEAD.
Documenting [partners'] goals and performance is the cornerstone of the evaluation process," EY said in its 2024 transparency report.
"An EY member firm partner's goals are required to reflect various global and local priorities across six metrics, the most important being quality."
When partners do not adhere to EY's quality standard, remedial action such as performance monitoring, compensation adjustment, additional training, additional supervision or reassignment can be taken.
EY's compensation policy calls for "meaningfully differentiated reward" based on partner performance in terms of client service, engagenent and financial and market metrics.
Moore Ireland
Moore Ireland has 19 partners following its recent merger with Galway's DHKN.
In the past 12 months, the company said it has admitted eight new partners organically and inorganically.
Moore typically appoints partners annually, but increasingly operates on an event person, and will not "waste time" when the right person is ready.
"We have a structured, disciplined and systematic process for partner elevation. Career progression is vital element of our wider practice management strategy. We want our people, at all levels, to fulfil their potential and it is our role to create the environment whereby this can happen," a Moore Ireland spokesperson said.
"This applies to all our people, not just partners. But the process is calibrated to suit each role. For partners, key considerations typically are service and sector expertise, quality control, general business acumen, team skills and risk awareness.
"The key features of the process are that it is both transparent (clear to all participants how the process works) and consistent (applied equally to all)."
Azets Ireland
Azets Ireland currently has 21 specialist partners across audit, corporate finance, tax, financial services, restructuring, corporate governance, fund management, and business services, and has appointed 15 since 2020.
The firm plans to increase its headcount across its offices in Dublin, Enniscorthy and Waterford to 400 people by the end of the year.
"As part of its ambitious growth plans, the firm offers significant opportunities for professional development and for colleagues to progress right through the organisation from graduate level up to management and partner," a spokesperson said.
"As the firm continues to grow, Azets Ireland will continue to deepen and strengthen its bench of advisory experts at partner level and beyond, to better serve clients and provide them with the expert advice to navigate a rapidly evolving business environment."
KPMG Ireland
KPMG Ireland has 144 partners, according to its website.
"KPMG in Ireland compensation and promotion policies are informed by market data, clear, simple, fair and linked to the performance review process," the company said in its 2023 transparency report.
"This helps our partners and employees understand what is expected of them, including audit quality accountabilities outlined in globally consistent audit role profiles and the audit quality goal.
"The connection between performance and reward is achieved by assessing performance across a peer group to inform reward decisions. Reward decisions are based on consideration of both personal and individual firm performance."
Partners are remunerated out of the distributable profits of the company, and a personally responsible for funding their pensions.
The final allocation of profits to partners is based on an assessment of their contribution for the year by the remuneration committee. KPMG in Ireland brought in revenues of €598m in 2023.
PwC Ireland
PwC Ireland has 141 partners, according to the latest transparency report, and most recently announced the appointment of 10 partners in tax and assurance last June.
Partners are remunerated solely from company profits, decisions on the distribution of which are made by the managing partner with input from the territory leadership team based on their assessment of individual partners' roles, experience and sustained performance.
"The key criteria applied to assess an individual partner’s sustained performance include an assessment of their impact with clients and in the marketplace, their impact in the firm and their engagement with our people. There is transparency among the partners in relation to the allocation of profits," PwC said in the report.
The firm employs more than 3,600 people in Dublin, Cork, Galway, Kilkenny, Limerick, Waterford and Wexford
Deloitte Ireland
As of May last year, Deloitte Ireland had 140 partners, but the Big Four firm appointed a further 13 the following month and three in October, potentially bringing the total to 153.
With the June appointments, the share of female partners rose to 33%, and the company plans to achieve its 35% goal this year.
Deloitte presently employs around 3,000 people in Ireland across audit, tax, consulting, and financial advisory services.
"In accordance with global policies, Deloitte Ireland’s partners are evaluated on a yearly basis, and depending on the outcome of the evaluation, the remuneration of partners may increase or decrease," Deloitte said in its 2024 transparency report.
"Specifically, partner evaluation is assessed across three dimensions, namely, shared values, personal attributes and capabilities. As stewards of our firm, all partners should be role models of our shared values.
"It is up to the partners, collectively, to know our firm, to take a broader view and to set the "tone at the top", guided by our values and our culture as an organisation, delivering quality to our clients.
RBK
Chartered accountancy firm RBK has 20 partners after appointing Sinéad McMahon, Charlene McCrossan and Michael Moriarty in October.
“As a full-service firm, RBK is dedicated to continually enhancing and expanding our wide range of specialist services, while supporting clients in navigating complex reporting and regulatory challenges," managing partner Joe Cleary said at the time.
“The expertise and commitment of our skilled staff are essential to delivering outstanding client service.
"These appointments showcase RBK’s extensive expertise across key areas such as audit, accounting, taxation, and business advisory while reflecting the firm’s ongoing growth and reinforcing our commitment to delivering exceptional service through the investment in and development of talented professionals.”
BDO Ireland
When BDO Ireland appointed five new partners last year it brought their total 41 partners.
The company, which has 500 employees in audit, tax, consulting and advisory across its offices in Dublin, Limerick and Cork, announced another four partners this week.
Managing partner Brian McEnery said: “Their leadership will play a pivotal role in supporting BDO’s clients as they navigate complex business landscapes and pursue growth opportunities."
Appointment and removal of partners is the responsibility of BDO's partnership committee, which is made up of five partners each selected to serve for three years.
A separate evaluation committee made up of the managing partner and four partners elected every year, reviews partners' contributions to the quality of client service, staff management and development, and financial success of the firm.
That committee is also responsible for recommending the distribution of profits, subject to a vote of the partners.
When evaluating partner performance, the committee consults the quality & risk committee report, and all partners go through a performance evaluation every two years.
Forvis Mazars
Formed following a merger of sorts between Mazars and US firm Forvis, Forvis Mazars currently has 38 partners and 680 professional staff.
In 2023/23, the company introduced a partner quality and risk report with several metrics for assessing contribution, performance and risk environment for each partner.
Profits are divided among partners according to the number of 'base points' they have, which are allocated on the basis of the performance of the national entity and the wider group.
In Ireland, Forvis Mazars has opted into a bonus system for individual performance, and partners receive a portion of the global envelope based on their country's performance.
"In determining the variable bonus element of partners’ remuneration in Ireland we make adjustments for quality, compliance and risk management matters, such as complaints, claims, or failure to comply with the firm’s policies and procedures," Forvis Mazars said in its 2024 transparency report.
"One of the ways we demonstrate our commitment to quality is by ensuring all partners have performance objectives set for quality. In this way, we can reward partners who meet our expectations of high quality, by using evidence from internal and external quality monitoring reviews.
"Partners who are not shareholders in Forvis Mazars Group SC are allocated a fixed profit share and may be allocated a further profit share based on particular performance criteria."
(Pic: Getty Images)
