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There’s a few things:
- Volume of work is lower so annual total billings per fee earner are lower.
- Pyramid is seen to be a bit steeper, Partners take home significantly more relative to more junior employees.
- Risk mitigation. When the M&A market isn’t as buoyant the low-margin, low-risk aspects of big-4 like audit and managed services keep the M&A teams funded, which in turn means people swallow lower wages for better job security. When M&A does well, profit is shared back to those other equity partners who have hedged risk.