At Accenture, Partners Take Pay Cuts, Staff Forego Raises

In response to a continuing industry slump, Accenture, the consulting firm that went public after separating from Andersen, is implementing a drastic austerity program to cope with today's tough times for the consulting industry.

The firm has said it will cut partner salaries by about seven to eight percent for the fiscal year beginning September 1, 2002. It will also cut the salaries of some staff below the partner level, and the base pay for most other employees will remain frozen.

The only employees who will receive salary increases will be those who are promoted, and even among those, several will receive bonuses instead of pay increases.

In other cost-control measures, Accenture will not grant performance-based stock options to the firm's 2,700 partners this year, and it is reviewing the overtime pay policy for employees.

This latest round of belt-tightening follows a series of job cuts that resulted in the elimination of 1,000 positions last month. The firm has also been trying to cut costs by closely managing its travel expenses, training employees through the Internet, rather than sending them to classrooms around the country, and redesigning its offices.

Like other consulting firms, Accenture has lost revenues as companies have postponed spending on information technology projects during the economic downturn. Hopes for a recovery in this hard-hit industry have been pushed back to next year.

-Rosemary Schlank

You may like these other stories...

Read more by Rita Keller here.I recently read a tweet by my music-teacher son regarding his fifth-grade musicians: “My fifth-grade flutes and clarinets just exhaust me. They have so much energy and ask sooooo many...
By Richard D. Alaniz  On June 24, 2013, the US Supreme Court narrowed the definition of who qualifies as a "supervisor" for the purposes of harassment cases. This holding is a significant win for...
By Ken Berry The common perception is that most of the key provisions included in the massive 2010 health care legislation – the Patient Protection and Affordable Care Act (PPACA), frequently referred to as...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.