PWC (PriceWaterhouseCoopers) released its latest update (April 15, 2010) of the administration of the Lehman Brothers bankrupcy. Its fees for the most recent six month period are £57.6 million ($88.6 million USD). This brings the total fees for 18 months to about £203 million ($312 million USD).
PWC-UK revenues from the Lehman engagement are 6% ot its total revenues for the 18 month time period.
The Big 4 Report describes this in an astonishing headline:
The headline is a bit of an understatement. The $24,000 per hour is derived from dividing the total fee to date by the total number of hours available (24/7/52/1.5) from the start of the engagement 18 months ago. Since the working hours per week are only one fourth of the total hours in a week (40/168), it is probably more realistic to say that PWC’s administration of Lehman generates about $100,000 per working hour. That is a lot of staffers assigned to the Lehman engagement.
PWC expects speedy progress to be made in the resolution of the remaining claims. But I wonder, how can it afford to be speedy? If the Lehman gravy train ends, then will it need to lay off the staffers (about 10,000)? That will be great for morale. It will also be great for its independence as it scrambles around trying to preserve its surviving revenues.
Debit and credit – – David Albrecht