Benefits August 6, 2002

Accenture Accentuates the Negative: Cutting Pay, Bonuses

August 6, 2002 (PLANSPONSOR.com) - Consulting giant Accenture Ltd. has cancelled raises for most workers - and plans to cut partner salaries by as much as 8%, according to published reports.
Reported by

The Chicago-run company has canceled raises for the bulk of its employees, keeping their base pay flat for all of next fiscal year, which begins September 1.  The only exception is newly promoted employees, where some will get slight raises while others will receive bonuses in lieu of raises, according to Crain’s Chicago Business, citing a company spokeswoman.

Reacting to the business slump, Accenture partners will also have their salaries cut, and the company is also eliminating performance-based stock options next fiscal year.  Still other pay cuts will be aimed at partners whose salaries are above the industry average, according to the report.

Last month Accenture said it would slash about 1,000 jobs, roughly 1% of its workforce of 75,000 worldwide.  The company will be cutting consulting positions over the next few months, mainly in management.

The reductions will be primarily in the United States, the United Kingdom, and Australia, according to the spokeswoman.

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