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The Going Concern Year in Review (2010)

Posted on December 29, 2010 by Caleb Newquist

2010. What a year, amiright? It got off to a bit of a rough start after our facelift but as the year went on, things stayed interesting…most of the time. Anyway, since most of you aren’t getting Jack Squat done this week, let’s take a look back at the year that was.


1. Compensation – Shocking revelation here, we realize but – YES! – it’s true, this was what you cared about most in 2010. After two years of disappointment, the Big 4 and the aspiring “Bigs” (Grant Thornton, BDO, McGladrey) all returned to merit increases and bonuses this year. PwC shot out of the gate with Ernst & Young keeping pace while KPMG remained steady but slightly behind. Deloitte, lagging behind, made a late charge with the announcement of a mid-year adjustment, which may or may not have set off a rash spreading amongst the other firms to provide bonuses throughout their fiscal year-ends. Was it a successful 2010 on the compensation front? Some say “yes,” some say “no,” but there’s little doubt about what keeps your attention.

2. PwC Email Hottiegate – Unless you were in a coma during the second week of November, you were aware of the email that listed the top 10, errr 13, new female associates that came out of PwC in Ireland. The gents who passed around the list weren’t so concerned with using work email to give the ladies the Letterman treatment and the Irish brass didn’t take too kindly to the “tradition.” This story dominated our pages for a few days and the last we knew, a total of five employees had been suspended, the women weren’t planning on lawsuits and Adrienne gave her point of view (as a member of the fairer sex).

3. Ernst & Young and Lehman Brothers – We were really expecting a slow week leading up to the Christmas holiday but because the force is strong with Andrew Cuomo, our dreams were filled with Jim Turley trying to burn us with Montecristos. It all started in March when the bankruptcy examiner’s report put E&Y right at the center of the failure of Lehman and last week we finally saw Cuomo fire the first shot.

4. PwC Makeover – Change is usually met with wailing and gnashing of teeth and the updated look rolled out by PwC in mid-September was no different. Despite the rants about color schemes and geometry, Bob Moritz assured everyone that the majority of feedback was positive and that he was happy to answer any questions about the change that didn’t relate to autumnal hues and Legos™. As is typical in these situations, the bellyaching has died down and everyone is now distracted by their new iPads.

5. Large firm vs. Small firm – An anonymous reader submitted an essay on the main differences between life in the Big 4 (and aspiring Bigs) life and that of the lives working in the smaller firms. Most have wondered what life would be like in their bizarro public accounting existence and some have actually lived it. There are pros and cons to each but life at the small firm is decidedly different.

6. An auditor’s life:

7. Layoffs – 2010 saw fewer mass layoffs than the past couple of years but that doesn’t mean there weren’t spots of cuts here and there. Most notably were the nationwide cuts at McGladrey as well as the 500 cuts made by PwC in Florida. Grant Thornton was busy slimming down its exposure in smaller markets but layoffs were not always part of the “transition” as practices were often sold or employees were giving the opportunity to transfer. And last but not least, we learned that Deloitte claimed “our bad” on their cuts from May 2009.

8. Getting in trouble on the Internet – Whether you’re trying to win a trip to Whistler for you and your bros or emailing your buddy about putting the moves on a lady, there was plenty of idiotic behavior going on across the Internets. Adrienne laid out how to not behave but humans are creatures of habit and we’re sure there’ll be more exciting idiotic behavior in the coming year.

9. PwC Houston Happy Hour – The team happy hour. Typically a festive event filled with free booze, laughs and the occasional awkward advance. The latter allegedly took form of a partner towards an associate this past summer in PwC’s Houston office that resulted in a odd pick-up line, a sloppy kiss (our vision) and then a knuckle sand. The latest we heard was there were multiple associates approached, the partner-in-question was still with the firm and that the associate(s) involved were shipped off to other engagements. So all is well in H-town. PwC never returned our calls, emails or singing telegrams on this story.

10. Accounting Career Drama – One of the most popular series on GC is the career advice that we throw out here and there. Everything from trying to quit nicely during busy season to defection amongst Big 4 firms to explaining why your fantasy football roster is constantly on your computer screen. We’re here to help you get through the purgatory that is your time on Earth so if you’ve got a problem and want advice, email us at advice@goingconcern.com.

Honorable mentions:
Too hot for PwC; thinking about law school?; a Big 4 failure in our future?; an accounting degree isn’t a scam like, say, a law degree; articulating the dress code; Ernst & Young manager censured by the PCAOB; how to screw up the CPA exam; Joseph Stack’s (the guy who crashed the plane into the IRS building) manifesto; accounting professor de-pants.

If we missed any of your favorites, feel free to recall your fondest memories on this here site. As we head into the new year, here’s a friendly reminder of how to get in touch with us:

• Email us comp news, gossip, cost saving initiatives and any other newsworthy items to tips@goingconcern.com or advice@goingconcern.com if you have need some bloggy wisdom.

• DM or “@” us on Twitter: Going Concern; Caleb; Adrienne.

• Like Going Concern on Facebook and leave a message on the board. You’ll have to work hard if you want to friend us.

• If you really want stay off the Internets, simply email one of us and we’ll give you a number to call.

We couldn’t do it without all your help, so keep it up in the new year so we can have an even more eventful 2011!

Posted in NewsTagged 2010, Compensation, Ernst & Young, Layoffs, Lehman Brothers, PwC Email Hottiegate

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Having just passed April 15, the first words I want you to read are “Thank you!” As we move through our busiest season, I continue to be impressed by the long hours, personal sacrifices and collaboration I read about in my e-mail, on our home page and by special letters and words of praise and thanks from our clients. As I’ve met with clients recently, one after another client executive raves about our people. It’s customary in the firm to say that clients rave about “our service,” but what they’re referring to is “you.” They are raving about each of you. The individuals for whom you work and with whom you have formed strong relationships based on excellence and trust are taking the time to tell me how valuable you have been to their respective businesses. Every time you show up, speak up and stay up late, you are demonstrating our global values: collaboration, leadership, excellence, agility, respect and responsibility. You are making a difference.

In case you missed it, your mere ability to drag yourself out of bed every morning, get to work at a decent hour, manage to utter a coherent sentence, and sacrificing your own health by depriving yourself of sleep you are making a difference. Your clients have noticed this by way of your wrinkled clothes, scuffed shoes, that expanding paunch, and your the all around zombie-esque qualities you exhibited every day during busy season (never mind this was all done for very little money).

And because of all those raving clients, Steve-o sent a little nudge to GT partners to make sure that they know, that you know, that they appreciate it because as it stands, they’re not doing that bang-up of a job:

Thank you.

These two simple words make a profound difference.

Feedback from the Voice Your Experience survey indicated that we need to continue to improve how we recognize our people. Interestingly, research shows recognition is not only about money and that a personal acknowledgement is especially powerful in motivating people to achieve exceptional results.

Please use the enclosed stationary to write your people notes of appreciation. By modeling this behavior, you play a key role in perpetuating a spirit of acknowledgement that benefits both our people and our business.

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