Deloitte chief shoots to top of pay league

John Connolly, the senior partner at the accounting and audit firm Deloitte, shot to the top of his industry's pay league last year, receiving more than £4m through the group's profit-sharing programme.

Publishing its UK results for the year to 31 May, the group revealed that Mr Connolly was paid some £4.166m over the period - putting him among the highest-paid individuals in the country. The average Deloitte partner received £765,000, while the executive management shared a total of £27.9m.

The payouts came on the back of a bumper year for the firm, during which its profits swelled 8.7 per cent to £489m, while revenues rose 15 per cent to £1.56bn.

The group's consulting business grew fastest over the year, with new business increasing by some 22 per cent. Deloitte's audit division grew by 17.2 per cent, while its tax and corporate finance businesses expanded by about 10 per cent. Mr Connolly conceded, however, that markets may prove more challenging over the coming year. "The markets will be tougher in the year ahead," he said. "The complex interaction of the turmoil in the Middle East, oil prices, fear of inflation, a slowing US economy and now the recent UK interest rate increase impact corporate confidence and there is already evidence of this.

"We have reshaped our leadership to meet the market challenges ahead and our continued investment in quality and people is an indication of the confidence we have that we will continue to be successful."

Mr Connolly said the group had increased its professional staff by almost 13 per cent during the last financial year, and had already promoted 38 new partners, 12 new principals and 136 new directors since the start of its new year. In spite of his warnings over hardening market conditions, Mr Connolly said the firm had seen strong business levels during the first two months of its financial year.