PwC partners wanting to exit to rival consultancies say they are being hit with unreasonable restrictions that prevent them from providing service to clients they haven’t directly worked with and restrictions on their payout.
Why it matters: PwC partners want to move to rivals but the firm wants to slow or deter these departuresWhat next: Exiting partners may use lawyers to fight the restrictions
Partners who have left or are in the process of leaving the embattled firm have sought legal advice to navigate the exit terms of the PwC partnership deed, which one partner described as “outrageous, onerous and unenforceable”. The condition, which was introduced to the PwC partnership agreement in the past 18 months, says the withheld income – either in its entirety or at a recommended percentage – would be paid out 12 months after the partner leaves the firm at the discretion of the partnership board., a PwC spokeswoman said: “Partnership terms at PwC Australia are not dissimilar to those at other professional service firms and across other industries.