Thousands of EY audit partners are reported to be in line for multimillion-pound payoffs if the big four accounting firm goes ahead with plans to split its auditing and consulting businesses.
The Times says that, last month, it emerged that the group was exploring a full separation of its traditional auditing arm and its fast-growing consulting operation.
According to leaked internal documents, EY is looking to float the consulting business at which point it will sell a 15% stake in the new company.
Executives estimate that the business could be valued at more than £8billion. Consulting partners would retain 70% of the company, with the remaining 15% kept back for staff share awards.
A substantial amount of the money raised would be used as a "golden goodbye" for audit partners, who would remain in the slower-growing business.
Under the plans laid out in the Project Everest proposal documents, those partners would receive a one-off payout of two to four times their annual pay, it has been reported.
For EY's UK audit partners, who were said to be paid an average of £749,000 last year, their windfall payment might be as much as £3million. The most senior partners would most likely get far more.
Those partners staying with the consulting business, which is expected to rebrand, would get shares in the newly-public company worth seven to nine times their salary, paid over five years.
The Times reports that EY said in a statement: "No decision has been made. We are evaluating strategic options that will drive value for all our stakeholders. We undertake this evaluation from a position of strength."
EY traces its roots to the 19th Century. It employs more than 300,000 people in 150 countries.
FTSE 100
The UK's top share index, the FTSE 100, was up nine points at 7,130 shortly after opening this morning, following yesterday's 105-point gain.
Brent crude futures were up 0.64% at $114.77 a barrel.
Companies reporting today
- Full-year results: DS Smith, Safestore Holdings, Telecom Plus