Remuneration report

KPMG has a clear, consistent approach to remuneration. The firm’s people are entitled to both a fixed salary and performance-related variable pay. In determining variable pay, several criteria are considered, the most important of which is quality. As a matter of policy, professionals who underperform on quality are not eligible for variable pay. However, KPMG does reward those who go beyond the original scope of their roles and/or have a positive impact on their team and the company as a whole.

For all colleagues, performance is assessed against pre-agreed annual goals, which are linked to KPMG’s business plan, culture, values, and behaviors. Performance is graded, with these grades – together with an individual’s potential career path – used to determine remuneration. KPMG regularly benchmarks its remuneration against selected markets to ensure the firm remains competitive.

For engagement leaders – that is, those leading audits or advisory projects with clients – performance scores are determined using standardized quality and risk metrics (including the results of external reviews and internal monitoring programs, success in “leading by example,” and timely completion of training).

Partners

There is a different remuneration structure for equity partners. They do not receive a salary; instead, each year, they receive a share of the profits, which is also adjusted for performance (starting with quality). In 2024/2025, partners received an average profit share of EUR 765,000, an increase of 9% compared to the previous year (EUR 701,000).

Partners’ pay is determined by three factors: the company’s profit for the year, personal performance, and the number of partners. Management closely monitors any partners scoring four or five (the two lowest grades), for whom individual improvement plans are put in place. This process is overseen by the Supervisory Board. Equity partners are subject to clawbacks; this allows the firm to recover part of their annual management fees in the case of “demonstrably culpable conduct.” A deferred payment scheme is also in place for Assurance equity partners (in line with measure 3.5, published by the NBA).

Board of Management

Members of the Board of Management receive a fixed compensation and are not eligible for variable pay. Equity partners serving as members of the Board of Management are also excluded from profit sharing. The remuneration for Board of Management members is determined at the beginning of each year by the Supervisory Board, based on levels of partner pay over the past three years (a so-called rolling mechanism), long-term performance of the firm, market trends, and professional responsibility. This is done to focus remuneration on the longer-term performance of the firm. The CEO, as non-partner, is entitled to a severance payment in certain circumstances, and receives retirement benefits as a participant in the pension scheme.

When evaluating the performance of members of the Board of Management, the Supervisory Board takes into account their personal performance and their approach to long-term KPIs in areas such as quality, public trust, client satisfaction, people management, and sustainable business growth.

Supervisory Board

Members of the Supervisory Board receive fixed annual fees. In 2024/2025, they received total remuneration of EUR 405,000 (2023/2024: EUR 472,000). Remuneration (in EUR) for 2024/2025 was as follows:

In 2024/2025, the remuneration of the members of the Supervisory Board was evaluated and benchmarked, resulting in an adjustment per 2025/2026.