Partners at RSM UK, a leading firm specializing in audit, tax, and consulting services, experienced their highest pay to date due to a record performance in its auditing division, even amid regulatory criticism of emerging challenger firms.

In the latest financial year, from April 2023 to March 2024, RSM’s 151 equity partners in the UK earned an average of £708,000, marking an increase from £661,000 the previous year.

This surge in compensation coincided with RSM’s strongest fiscal year, showcasing a 12 percent increase in annual revenue to a remarkable £543 million. Profits also saw a 7 percent growth, reaching £160 million.

Rob Donaldson, the chief executive of RSM UK, commented, “This year marked our strongest financial year yet — a remarkable milestone achieved against a backdrop of virtually no economic growth in the UK.”

The firm’s audit and assurance service, responsible for validating companies’ accounts, emerged as the leading service line, with revenues climbing 20 percent to £165.2 million.

Donaldson noted that this growth was “primarily driven” by new client acquisitions, including brands like Superdry and the City of London Investment Group. He acknowledged, however, that fee increases had also contributed to the rise.

As the seventh-largest audit firm in the UK, with a workforce of 5,400 people, including 368 partners, RSM faced scrutiny from the Financial Reporting Council (FRC) last December for its “unacceptable” work quality.

While the FRC did not disclose individual firm scores, its findings revealed that nearly two-thirds of the audits reviewed were deemed substandard. Donaldson stated he was “aware of the findings,” but asserted, “While our gradings aren’t in the public domain, we believe we have successfully upheld the standards of audit quality that we have set ourselves.”

Despite consulting being RSM’s largest service line, it saw only a 6 percent revenue increase to £216 million as clients remained cautious about economic and geopolitical conditions. Donaldson admitted that demand for certain consulting services has “proven sluggish in recent years,” but noted ongoing client interest in business transformation and financial modeling support.

Revenue from tax services witnessed an 11 percent year-on-year increase, reaching £161.3 million, as clients sought assistance navigating the “increasingly complex” tax environment.

Rank-and-file employees also benefited from a successful year, with RSM increasing its bonus pool to £11.8 million from £11.3 million, contrasting with other firms that opted for cuts.

Donaldson emphasized that these bonuses were part of a broader “major investment” strategy, which also includes a 15 percent growth in the workforce, a £6 million investment in refurbishing and opening new offices, and significant upgrades to technology systems.

“Our decisions to invest in these areas, we believe, will create greater opportunities for the next generation of partners and broader talent,” he stated. “It will also position us as the go-to firm for middle-market leaders globally.”