PwC chairman nets £3m payday as profits soar

The credit crunch has failed to dent PricewaterhouseCoopers' annual profits – or the pay packet of the accountant's chairman.

The world's biggest accountancy firm said underlying profit increased by 7 per cent to £664m in the year ended 30 June. Kieran Poynter, who stepped down as chairman at the end of the financial year, saw his pay rise to £3m from £2.8m. However, his payday was dwarfed by the income of John Connolly, chairman of rival Deloitte, whose £5.7m annual pay was announced last month.

Turnover rose by 7 per cent to £2.24bn. The firm said growth weakened in the second half after a strong first six months of the year as transaction-related business slowed down with the downturn in merger and acquisition activity. But a pick-up in business restructuring and forensic investigations activity driven by the economic slowdown helped offset the drop-off elsewhere.

Average profits for PwC's 840 partners were £797,000 compared with £970,000 at Deloitte. PwC said its pay reflected the amount of investment it made during the year in businesses such as advising companies on corporate responsibility.

Ian Powell, Mr Poynter's replacement as chairman, said: "The current economic uncertainty has affected business and consumer confidence with transactional activity down and a lowering of growth expectations for many UK and international businesses.

"Despite the market conditions, as the market leader, client demand for our services remains solid."