Remember back in 2011 when KPMG announced a loyalty compensation program called the Early Career Investment Bonus? It was a pretty creative plan on the firm's leadership to entice senior associates to stick with the firm for the better part of a decade. For that commitment, a person could hypothetically accumulate a $36,000 payout through the deferment of their bonuses over the course of three years. New seniors were kind of excited about the possiblities; third-year SAs were not.
The days and weeks and busy seasons have rolled by as they tend to do and last week, a source at KPMG reminded us that the payouts start tomorrow. That matches the date in the written communication from KPMG CEO John Veihmeyer and then-Vice Chair Henry Keizer that we published back in July 2011.
So unless there's been some kind of Scott London clawback, 1, 2, and 3-rated senior associates from 2011 that elected to take a payout, will receive $4,000 tomorrow. Less applicable taxes of course. If you're not getting a payout because you're deferring your bonus, good luck to you -- you'll need it. If you're not getting a payout because you weren't rated a 1, 2, or 3, then you're probably not at KPMG any more. If by some small miracle you are still of the House of Klynveld, then I suggest you walk around looking for someone willing to kuddle.
How are people responding? Well, when we asked one source -- a senior manager, who didn't qualify for ECIB -- whether the SAs were "grumbling or do they need to curb the enthusiasm" the person responded:
They're not grumbling. But they might be rubbing people above them the wrong way who didn't qualify for it.
That's not exactly a ringing endorsement of the plan, but it's not a condemnation either.
Since we're on the topic of money, there has to be some opinions out there. Feel free to share them now.