EY US cancels holiday bonuses
EY US has opted not to give its staff holiday bonuses this year, the Financial Times reported on Saturday.
The Big Four firm broke the news at an all-hands meeting on Friday, noting a darkened economic outlook.
Numerous banks and analysts have pointed to a probable recession in 2023, with Goldman Sachs CEO David Solomon last week saying he thinks “there's a very reasonable possibility” of a recession next year.
“While EY continues to experience strong revenue growth, we have elected at this time not to fund our additional, discretionary mid-year program given the changing economic environment,” EY told the Financial Times. “We remain steadfast in our commitment to being a leader in recognition and rewards. This includes our intention for planned annual performance-based bonuses and ongoing recognition awards.”
EY has for the last two years paid merit bonuses around the holiday season, alongside the main bonuses awarded at the end of the fiscal year in June.
EY Global achieved its highest growth in two decades in fiscal year 2022, boosting revenue by 13.7% to $45.4 billion. The Americas region, which is dominated by the US firm, increased revenue by 19% year-over-year to $21.1 billion in FY2022.
EY may be looking to cut some compensation costs in order to pump up valuation ahead of a potential IPO of its tax and advisory business. That would mean more valuable shares for consulting partners and bigger payouts for audit partners.
