The Big Four consulting firms—EY, Deloitte, PwC, and KPMG—are experiencing a partner problem as economic challenges and slower demand affect their traditional golden-ticket status. In 2024, these firms saw a notable drop in total revenue growth, which has directly impacted their partner ranks. Partners, the most senior employees responsible for client relationships and business development, are feeling the pinch. Equity partners share in the firm's annual profits, so as margins tighten, their payouts have decreased. According to a Business Insider analysis, the number of partners at three of the Big Four’s UK branches has declined. PwC saw 124 partners leave in 2024, more than in the previous two years combined. EY’s partner total dropped by 43 in 2024, while KPMG has experienced declines for at least three consecutive years. Deloitte UK, though increasing its partner numbers by 6 in 2024, showed a significant slowdown compared to the 69 added over the previous two years. Paul Webster, a former EY employee and managing partner at Page Executive, explained that the current environment significantly differs from the past, where partnership meant a lifetime job. Now, partners are being encouraged to retire, as paying out lower bonuses or reducing partner numbers is a more viable option in a tight market. Alan Paton, a former PwC financial services partner and now CEO of Qodea, believes this trend will persist over the next three years, making partnership "a club that you can't get into anymore." To cope with the declining partner ranks, firms are increasingly relying on non-equity partners. These individuals receive a salary rather than profit-sharing, effectively creating a stopgap measure. James O'Dowd, founder of Patrick Morgan, an executive recruiter specializing in senior partner hiring, noted that non-equity partner roles have become more prevalent as the market has slowed. This shift frustrates many non-equity partners who see their path to equity partnership becoming more distant. Historically, a Big Four employee could achieve equity partner status by age 35, but now, it's more likely in their early forties. PwC has introduced a new managing director (MD) role to fill the gap below equity partner, effective July 1, 2024. This role is designed to provide senior, high-performing staff with an alternative path and to offer more diverse career opportunities, attracting and retaining top talent. A PwC spokesperson highlighted the firm’s commitment to adapting to the evolving business landscape. These changes are also influencing younger professionals' perceptions of partnership. Both Webster and O’Dowd agreed that the allure of the partner title has diminished. Younger employees are more attracted to meritocratic compensation models and alternative career paths that align wages closely with performance. Additionally, recent auditing scandals and regulatory fines have raised concerns about the risk-sharing nature of the partnership model. For instance, a PwC partner in Australia saw her bonus severely cut due to the firm’s 2024 tax scandal involving the Australian government. Paton, the former PwC partner, maintains that becoming a partner is still highly aspirational but acknowledges that it has become less attainable. He also pointed out that artificial intelligence (AI) could further transform the role of partners in professional services, potentially making the position obsolete in the future. Industry insiders like Webster and O’Dowd emphasize that the Big Four’s traditional partnership model is struggling to compete with modern, performance-based structures. They believe that firms must adapt to stay relevant, particularly in an era where AI and changing market dynamics are reshaping the professional services landscape. Meanwhile, KPMG, EY, and Deloitte did not respond to requests for comment, leaving the exact strategies for addressing the partner problem unclear. In evaluating these developments, industry experts note that the Big Four firms risk losing talent if they fail to align compensation with performance and address the growing dissatisfaction among non-equity partners. Adapting to new market realities and leveraging technology efficiently will be crucial for these firms to maintain their competitive edge and attract the best professionals. As the consulting landscape continues to evolve, the Big Four’s ability to innovate and redefine partner roles will determine their future success.