Category: KPMG

KPMG University?

Well, sort of.

If you’re thinking something similar to Deloitte’s sprawling campus down in Texas, then you’d be mistaken. The British firm has decided to recruit “school leavers, not university graduates” and will sponsor them to get accounting degrees, reports the FT:

From next year, KPMG will take in 75 school leavers, and then meet the cost of a four-year accountancy degree from Durham university and an accountancy qualification. Trainees on the six-year scheme will start on up to £20,000 a year. In 2012-13, the maximum university tuition fee, now £3,290, will rise to £9,000. At the same time, subsidies are being withdrawn from the sector and rules loosened to allow new entrants into the market and innovation in course design. As a consequence, such schemes could become more attractive to universities.

You could reason that this is a good thing because of the money it will save the students but our concern lies with their university experience. Or, the lack thereof:

KPMG said it could eventually take “in excess of 400” of these trainees a year, more than half its intake. The scheme is therefore expected to replace much of its traditional graduate recruitment. KPMG trainees will not join a conventional degree course. They will, instead, attend special classes to allow them to spend most of their time working at one of the company’s offices.

So, maybe we’re misinterpreting the Queen’s English but that sure sounds like recruits spending their college days sporting business casual, undermining interns/new associates for gofer duties and nothing to do with binge drinking, drug experimentation, gaining the freshman 15 (50?) or sinking themselves into debt. Is nothing sacred?

KPMG to fund young recruits’ degrees [FT]

KPMG Recruiter Tries to Convince Some of PwC Advisory to Jump Ship

~ Post has been updated after initial publication, see below.

On Tuesday, we told that you KPMG was using the power of the Google search to try and woo anyone casually interested in “ey careers.” While this use of technological slight of hand by the firm is impressive, today comes word that at least one experienced recruiter within the House of Klynveld is taking a more direct approach:

Well it’s apparent that KPMG – or one of the initials – is desperate for advisory help. I know a ton of PWC peeps who received an email from this nuanced internal recruiter. This guy is spamming all of my colleagues.


From the sounds of it, our source is a little put off by this blatant attempt but for anyone looking for a new gig in the Chicago area, you may want to look this guy up:

FW: It is a great time to consider KPMG Advisory!!!

Hi [annoyed PwC advisory professional],
Your profile came up during our research efforts.

We are actively searching for top talent with Big 4 experience to join KPMG Advisory. In October 2009 we implemented a new structure for US Advisory to help us to better serve our client base and to drive more growth. We have been extremely successful with both of these goals and have a wide variety of opportunities across all of our Advisory Service Groups. I would love to speak with you about these opportunities and how they would be beneficial to you and align with your career goals.

Please let me know when you would have time for an initial conversation.

Finally, make your New Year a great one with a career at KPMG!

Best Regards,
Mike Madura
National Manager – KPMG Advisory Recruiting Research
Office: 312.665.3628
eFax: 312.896.9325
email: mmadura@kpmg.com

Our source also isn’t sure why a restructuring from October 2009 is being used as a selling point but then again, maybe it’s part of the reason KPMG had the highest growth in revenue last year? Feel free to discuss.

UPDATE: This just in, “I work in PwC’s Boston office in tax and many of my colleagues received this email today. Looks like KPMG is after tax too, not just advisory. Thought I would pass it along as a follow up to your earlier post.”

[annoyed PwC tax professional],
Your profile came up during our research efforts.

We are actively searching for top talent with Big 4 experience to join the KPMG Tax Practice.

We are currently experiencing rapid areas of growth across the United States in our Federal, International and State and Local tax divisions.

We are also looking for qualified individuals in our specialty and industry specific practices in M&A Tax, Valuations Services, Financial Services /Alternative Investment Management and Tax Controversy. With so much anticipated growth we can offer faster upward career mobility than what you are currently getting.

I would love to speak with you about these opportunities and how they would be beneficial to you.

KPMG is poised to significantly increase our revenue over the next few years, and we’d like to discuss how you, or someone you know, might align with our strategy!

Please let me know when you would have time for an initial 20 – 30 minute conversation.

Make your New Year a better tomorrow with a career at KPMG.

KPMG Takes Subtle Approach Wooing Anyone Interested in a Job at Ernst & Young

Recruiting for the talent amongst the Big 4 is competitive. This is known. What isn’t widely known are all the tactics in this competitive game of catch the accountant. In the past, we have seen direct solicitation by an E&Y recruiter which may be an effective method but it may be too abrasive for many within in the business who value propriety over the win-at-all-costs attitude.

Now comes news of a more subtle approach from KPMG, courtesy of an E&Y tipster who was searching for the firm’s career website:

While searching for the link to my firm’s career website I stumbled upon a pretty awesome ad (in a “ohhhh no you didn’t!” sort of way).


Since we’re fairly unfamiliar (read: completely unfamiliar) with Google’s method to the madness, we can only speculate how this little link found its way to the very top of Google search of “ey careers” but it does say “Ad,” so make of it what you will. Anyhoo, just for fun, we did our own quick Google Search of “ey careers” and got this:

So, it’s in the margin for us as opposed at the very top. But it’s still prominently placed on the search page and it’s also pretty hilarious that the hyperlink, “Ernst & Young Opportunities” goes directly to a KPMG URL (yes, it’s clearly disclosed by the Jobs.KPMGCareers.com at the bottom but who pays attention to that?). Perhaps our tendency to make mountains out of molehills is getting the best of us here but at the very least, this is an exciting twist on Sneaky Pete Piet.

Thankless Audit Client: Tui Travel Edition

Tui Travel is “an international leisure travel group” (which is fancy-speak for a travel agent) out of the UK. KPMG has been audited the books for awhile but this year they found a booboo that resulted in a £117 million write off. At the time the company copped to the error, although you don’t get the impression they were grateful.


From today’s report in the Guardian:

Just two months ago, Tui chief executive Peter Long said: “KPMG identified some system weaknesses and ledgers that had not been reconciled … Yes, they identified some of these control weaknesses which had then manifested themselves into the issues subsequently identified through a detailed investigation.”

Nothing unusual really, these things happen, clients usually grin and bear it but not our “international leisure travel group.”

KPMG said its relationship with “certain [Tui Travel] directors became increasingly strained” following “extensive discussions with the directors”. Among the areas where KPMG had raised concerns, the letter added, were the implications arising from the restated accounts and “their disclosure and accounting treatment in the financial statements”. Relations had reached such a low ebb, KPMG concluded, that “we are not confident that in the future we could carry out an audit of the company to the appropriate standard, but others may be able to do so.”

So it kinda sounds like their annoyance with the whole thing slowly boiled over into flat-out bitterness, leading to some increasingly unpleasant conversations. Sure, the directors in question would start out acting cool about it, “You know [chuckling], you really didn’t do us any favors there.” But eventually it became, “Boy, you’ve really outdone yourself, this time.” And finally, “For crissakes! You couldn’t leave it alone, couldja? [extremely patient KPMG partner explaining on the other end] What?!? [increasingly steamed, drumming fingers] We don’t care if it’s your job; we don’t like being embarrassed. [Pause, eyeroll] Stewards of generally accepted accounting principles?!? What does that even mean? [brief pause] Whatever, you can plan on us being uncooperative going forward.”

Or something like that.

Tui drops KPMG after it found £117m hole in accounts [Guardian]

Bonus Watch ’11: Some Details on KPMG’s New Utilization Bonuses

Who cares what they’re doing in Luxembourg, anyway? Our tipster qualifies some of these numbers for the new bonus program but assures us that they’re in the ballpark.

Details of the utilization bonus came through to managers in the NY Office to prepare them for the announcement to staff. Payments will be made in April and October based on total billable hours. Three Tiers T1 – 1700 hours, T2 1800 hours, T3 1900 hours, must meet or exceed hours listed. Bonus amounts based on base salary and level.

Associates are as follows as a percentage of base (might be slightly off, SA here and didn’t pay much attention to Associates pay) T1 – 2% T2 – 3%, T3 – 4%. Senior Associates T1 – 2.5%, T2 3.75%, T3 5%. So for a year if you reach 1900 hours, 950 Oct-April and 950 April-Oct, you would have received 10% of your base pay as a bonus broken into 2 payments.

I might have some of the numbers slightly off, as I read over my managers shoulder, and am only interested in Tier 3 SA as I had 2100 billed hours last year, but I think they are generally accurate. This was for IT Advisory. I know other Advisory practices have the same pay out rates but lower hour expectations by tier. No idea about Audit or Tax.

UPDATE: Tables from the advisory email that was sent out earlier today:

If anyone can confirm these numbers for IT Advisory, please get in touch. Likewise, [I]f you’re in other advisory groups, audit or tax and have the details, email us and we’ll update.

Bonus Watch ’10: KPMG Announces Mid-year and Year-end Bonuses for Exceeding Chargeable Hour Targets

Fresh off yesterday’s news of an improved FYE ’10 (and possibly more red meat!), KPMG announces their mid-year surprise. This should make busy season interesting, no?

New Above & Beyond Award for Staff Linked to Chargeable Hours
A Message from Jim Liddy, P. Scott Ozanus, and Mark Goodburn
8:11 AM ET, December 17, 2010

As we near the end of the first quarter of FY11, we are pleased to report that the firm’s business strategy is working well and yielding financial results that exceed our operating plan.

We are busy across Audit, Tax, and Advisory, with many of our client service professionals—especially staff—working particularly hard. While we are increasing our hiring efforts to meet the demand for our services, we also feel that it is important to recognize and reward outstanding efforts of our team members.

To this end, we are introducing a new Above & Beyond award that will provide all eligible Audit, Tax, and Advisory associates and senior associates who exceed chargeable hour targets with meaningful FY11 cash awards.

Above & Beyond awards will be paid in April 2011 and October 2011 and will be in addition to any year-end variable compensation or merit increases.

More details about the program, including award amounts, chargeability thresholds, and program guidelines will be communicated functionally by January 5.

The Above & Beyond award recognizes associates and senior associates for extraordinary effort while we continue to address our resource needs. And, in line with our compensation philosophy we will continue to monitor the marketplace to ensure that all our people are provided with competitive compensation that differentiates exceptional performers with superior rewards.

Our commitment to the highest-quality service to our clients requires that each one of us continues to do our best work and meet our objectives. Thanks again for your continued hard work, your outstanding contributions, and for all you do to help our firm succeed!

So, House of Klynveld pre-managers, what’s the consensus? It’s an extra bonus, paid twice, all practices are eligible and the firm will “continue to monitor the marketplace” (translation: read Going Concern) to make sure things stay competitive. It seems like a decent deal, although the award amounts are TBD. The only problem that we foresee is the time-honored tradition of some people putting in face time merely to run up their hours. Granted, budgets should help self-regulate that phenomenon but we all know how well that works.

Anyway, discuss your thoughts and let us know when you hear the award amounts.

Could KPMG’s Improved Revenue Mean More Omaha Steaks for Employees?

Yes, that’s a question for the group. But first, we should mention that despite the glaring lack of exclamation points, you can’t help but think that T Fly is running around 345 Park (or wherever he puts his feet up these days – is he in A/dam?) high-fiving everyone that crosses his path about the slight uptick in this year’s results:

AMSTERDAM, Dec. 16, 2010 /PRNewswire/ — KPMG, the global network of professional services firms providing Audit, Tax and Advisory services, today announced member firm combined revenues totaling US$20.63 billion for the fiscal year ending September 30, 2010, versus US$20.11 billion for the prior fiscal year, representing a 2.6 percent increase in U.S. dollars; a 0.1 percent increase in local currency terms.

“These combined FY10 revenues overall reflect positive and improving business performance across the KPMG network of firms and functional businesses worldwide,” said Timothy P. Flynn, Chairman of KPMG International.

“This improvement underscores the strength of our brand and that, in a significantly changing economic and regulatory environment, clients and stakeholders value how the high-performing people of KPMG are cutting through complexity, delivering informed perspectives and clear solutions to them,” he said.

And if it wasn’t for Google – GOOGLE! – the House of Klynveld would be the idealist employer on the globe!

Flynn added, “KPMG was pleased to be honored by Universum, the global talent consultant, this year for its ability to attract the very best people. Universum announced that students worldwide ranked the KPMG network globally second, behind only Google, as an ‘ideal’ employer. This is strong affirmation of our priority to making KPMG a magnet for talent and a place where people can maximize their potential.

“The caliber of talent is a true differentiator among professional services firms in the global marketplace, and KPMG member firms worldwide will continue to invest in their people in the year ahead, attracting the best and most diverse talent. Our growth plans call for us to recruit approximately 250,000 people over the next five years,” Flynn said.

Whether “recruit approximately 250,000 people over the next five years” actually translates to putting asses in the cubicles, will remain another matter since every firm on Earth claims to ratcheting the hiring up a notch. Anyway, feel free to discuss whatever you like related to the Radio Station revenue results, including the likelihood of more bovine flesh in your future.

KPMG Partner Doesn’t Understand Why People ‘Are Dropping Like Flies’

From the mailbag:

Hey Caleb,

Was with a [Midwest city] KPMG Advisory partner this weekend. She said that employees are dropping like flies because KPMG finally unveiled raises after 2 yrs without. Only EP’s were awarded (less than 5%). She said the numbers were in the double digits. What the hell did they expect?


If this sounds a little confusing, it was. We asked our tipster to clarify:

[A]re you saying that she’s under the impression that people are just now leaving because they are upset that they didn’t get raises for two years? And she’s surprised because the raises in the double digits when they were actually in the single digits?

And their response:

[S]he is surprised that so many are leaving especially given the unemployment rate in [midwest city] regardless of how long it’s been since raises were given. It’s not a secret that the other big four have not only given raises but as you report, awarded mid-yr bonus/raises as well.

We went back to some of this year’s KPMG comp threads and the 5% sounds a little suspect, as those rated as “exceptional” were pulling much better increases than that but then again, maybe there were some exceptions that weren’t reported. Also, it seems a little strange that a partner would be so clueless about raises but anything is possible, s’pose.

And as far as the gnashing of teeth because mid-year raises and bonuses are being handed out at other firms, keep in mind that KPMG isn’t even out of their first quarter yet. The rest of those firms have fiscal years that end prior to KPMG’s and they know how the first half of the year is shaping up. Expecting KPMG to start throwing money at people with less than three months in the books is a little ridiculous. At this point, the rumors around the idea of a mid-year surprise should keep you hopeful (but don’t go expecting anything).

It’s been no secret that people have exiting the House of Klynveld (and other firms) – regardless of the unemployment situation – prior to the end of the year (as is typical this time of year). Frankly, people we talk to are pretty optimistic about the job situation for most Big 4 types looking for something new, so this partner may be even more clueless than we thought.

Whatever the case, only 17 shopping days until those left will likely settle for sitting tight through another busy season. If we’re way off base here (or right on the money), feel free to jump in.

Comp Watch ’10: KPMG Town Hall Results in More Questions Than Answers

After hearing that KPMG was following suit with a mid-year compensation surprise, we’ve now been tipped that any hope you had of seeing a little extra moolah has been crushed:

Last night was KPMG’s New York Office (NYO) townhall meeting. During this meeting, close to 2,000 NYO employees of the firm gathered in a hotel in Time Square to listen to a series of presentations from the CEO, COO and Office Managing Partner (OMP). During this four hour presentation, they covered an array of topics, including: compensation and benefits, technology, etc.

Depsite hearing that the firm will be allowing staff (associates and senior associates) have KPMG email access on their iPhone, Android or BlackBerry phones, no further details were provided about what they will be paying for, if anything.

They also announced that they were keeping up with the average regarding compensation, but made it a point to mention that with every average, someone must be below the average, hinting that we were that someone. After finding out that there will be no mid-year bonsues or raises, some left the meeting rather disappointed… at least there was free booze and food (like any other normal KPMG event).

But wait! This sounded a little weird to us since our sources on the original story were solid, so we checked in with another source who told us the message was simply non-committal, “They didn’t really confirm/deny what was going to happen with the mid-year stuff.”

So all this “Yes? No? Maybe so,” probably isn’t so helpful but that’s where things appear to stand.

Back to our original tipster, who is now hearing talk of next fall’s associates receiving a boost in their starting salaries:

Later that evening, however, many of the recent hires (new associates in 2010) were beginning to hear that the 2011 new hires (for next year) were already receiveing salary adjustments (upwards into the $60,000’s), in addition to their already higher starting salaries and sign-on bonuses.

So my question is: Does KPMG plan on compensating the new associates (that started in 2010) that did not receive a sign-on bonus this year, or perhaps have any plans to bring their salary closer towards the industry average?

Starting salaries have been consistently rising over the years and with increased competition among the firms for the best recruits, you can expect that to continue. Whether that results in adjustments for KPMG’s latest class of new associates remains to be seen, since a mid-year surprise is still uncertain. We should say, however, expecting more money after being on the job for 2-3 months is a little presumptuous. We understand the frustration but, seriously? You can barely open Excel at this point.

As you hear more regarding the mid-year compensation (or lack thereof) email us with the scoop.

KPMG Partner Who Missed $1.9 Billion Error Having No Problem Blaming Others

Apparently it’s auditor punishment Monday. Or Tuesday, if you’re Down Under:

A lead KPMG auditor who only learnt about a $1.9 billion [about USD $1.88 billion] error in his audit of Allco Finance Group through a report in BusinessDay was benched for nine months by the corporate regulator yesterday.


To be completely fair, it sounds like it may have been a tricky audit:

Christopher Whittingham, a KPMG partner, led a core team of 20 audit staff that signed an unqualified audit report on the notoriously complex accounts for Allco for the year ended June 30, 2007.

Or was it?

The error detected by BusinessDay involved the 2007 accounts classifying $1.9 billion in liabilities owed by Allco as non-current, telling investors they fell due more than a year later. The liabilities were, in fact, current liabilities, meaning they were due within the year. The amount of current liabilities is a significant issue for shareholders when considering whether a company can meet its debts when they fall due.

Whatever the case may be, Mr Whittingham shouldn’t sweat it too much:

[T]he Australian Securities and Investments Commission released an enforceable undertaking with Mr Whittingham, which included a nine-month suspension, a $10,000 fine and 10 hours of professional education.

Well, at least he’s taking responsibility for his mistake and isn’t pointing his finger at anyone else or making excuses, right?

Mr Whittingham said he had relied on managers for aspects of the audit, the error had no bearing on Allco’s collapse and he had reissued its accounts the day after he became aware of the error.

Oh.

Regulator suspends senior KPMG auditor [Sydney Morning Herald]

Earlier:
(UPDATE) PCAOB Gives Ernst & Young Manager the Charlie Rangel Treatment

Compensation Watch ’10: KPMG Discussing a Mid-Year Bonus (or Something)

After moves by Deloitte, PwC, McGladrey and now Grant Thornton, we have now heard that KPMG is discussing a mid-year surprise.

The only thing is, there aren’t a lot of details at this point. The firm’s first quarter is not over until the end of this month, so the pool likely hasn’t been determined and it isn’t known whether the mid-year comp will be paid as a bonus or as a merit increase. Our source on the matter speculates that it will be a bonus rather than a raise but it is fairly certain that it will be structured in a way that will incentivize employees to stay with the firm. There has been steady stream of people leaving (which is not atypical this time of year) and there are hopes that this show of love will stem the tide.

So while it appears that the House of Klynveld has heard your grumbling about anteing up, time (and the amount of money) will ultimately determine if this will satisfy the troops.

If you’re familiar with the talks or you have more details, email us the details and discuss your thoughts below.

UPDATE – circa 2:10 pm: Some thoughts on a non-bonus approach:

Pure (educated) conjecture on my part, but I would assume that the mid-year “surprise” would be a raise, as the firm is apprehensive at this point about giving bonuses, because people could just take them and leave. Harkening back to our SOX-404 years (2005), we gave multiple raises, bonuses and awards throughout the busy season (i.e., if you worked 60+ hours in a week, immediate $200 award) with a bonus at the end of the tunnel. I seriously doubt any early 2011 compensation would be front-loaded.

And then, in case you weren’t already aware, there’s this:

In other news, [the Dallas] office has been reaching out and giving offers to people they have previously laid off and are seeking out experienced hires. Not sure if it’s firm-wide, but an interesting sign of desperation nonetheless.