Category: KPMG

KPMG Reinstating “Standing Ovation” Bonus Awards

Back in November 2008, KPMG suspended the highest level of its Encore bonus award, the Standing Ovation to “manage costs.” Since there is no shortage of exceptionalness at Radio City, the $500 awards were adding up so word came down that it was ixnay the tandingsay vationsoay.

The firm did keep its “Bravo” award that was good for $200 and replaced the five-hundo bonus with a $25 award and “thanks e-cards” that were way better than anything from Hallmark simply because Tim Flynn probably included a personalized message.

And you, simply, cannot put a dollar figure on that.


The most devastating part of the Standing O kibosh was that the trophies — which could easily qualify as a “blunt object” at a crime scene — were no longer handed out. These, understandably, are most coveted of all KPMG tchotchkes.

Well now, according to accountants familiar with the matter, the firm has reinstated the Standing Ovation for reasons that we can only speculate. It will be reserved for those Klynveldians that “go above and beyond” the call of their duties. Again, we can only speculate as to what this actually entails. Considering the fact that the hours you’ve been putting in for the last month or so have been expected, it may just mean that you have to try a little bit harder.

The reintroduction is being received tepidly, as one source told us:

Kinda meaningless to me. They don’t hand them out. Except for managers that want to get laid by younger staff.

Seconded by another source:

Just because they bring them back, doesn’t mean any partners plan on approving them. – “Oh, I nominated you for a standing ovation, but it didn’t get approved! It’s the thought that counts though, amirite?”

Another source saw it as too little, too late:

“Do they really think $500 is going to stop a mass exodus of [people] from leaving? Perhaps they should have thought about that when they didn’t give raises.”

Despite the vague qualifications for the award, it’s good to see TPTB reinstating the bonus for the sake of morale/bribery/empty hope. Now go get yourself one!

Jefferies Follows Select Comfort’s Lead, Dumps KPMG for Deloitte

So this makes two SEC clients lost for KPMG in as many days. Again, Jefferies had no disagreements with KPMG yada yada yada. Jefferies didn’t even receive a GCO like Sleep Number. However, KPMG did include this language for this year’s (i.e. December 31, 2009) audit opinion:

“As discussed in Note 1 to the consolidated financial statements, in 2009 the Company retrospectively changed its method of accounting for noncontrolling interests in subsidiaries and earnings per share due to the adoption of new accounting requirements issued by the FASB.”


BFD, right? Could Jefferies really be so bent of shape over that to make the auditor switcheroo?

The other point is — and maybe we’re making a mountain out of a molehill here — this is the second example of a non-standard auditor opinion from the House of Klynveld followed by clients kicking them to the curb for the clean scalped, mustachioed comfort of Deloitte.

One thing is for sure and that is that Deloitte is clearly on the offensive here after losing so many SEC clients last year. Still, we’re curious about a few things: 1) Is Big D going after KPMG clients specifically? 2) Is there a secret weapon being employed to woo these clients (e.g. Barry does a dead-ringer Dr. Phil impression during the presentation)? 3) Are KPMG clients upset about Tim Flynn stepping down as chairman? OR are they upset that the Radio Station is still camping out in Iran?

If you’ve got concrete knowledge, crackpot theories or just want to take a shot in the dark (since most of you are probably drinking by now) on this new and emerging (?) trend, fire away.

8-K [Jefferies]
10-K [Jefferies]
Jefferies Announces the Engagement of Deloitte & Touche LLP as the Company’s Independent Registered Public Accounting Firm [Business Wire]

UANI Goes After KPMG for Iran Ties

[caption id="attachment_6035" align="alignright" width="260" caption="There\'s no connection. See? Iran is way over here. "][/caption]

It’s hard enough to be a Big 4 firm these days that you don’t need this. New York-based United Against Nuclear Iran (UANI) is a little upset with any and all companies that are doing business in Iran and just because you claim that you are a protector of the capital markets, that doesn’t earn you a free pass.

The Financial Times reports that UANI’s latest target is none other than the House of Klynveld and the lobby group sent a letter to Tim Flynn stating their displeasure with KPMG’s ties to their independent member firm in Iran, Bayat Rayan.


Flynn, who is stepping down as the Chairman of KPMG this summer, probably isn’t too psyched to have the firm lumped into the cross-hairs of UANI, who has relentlessly pressured companies to stop doing business in Iran.

The FT reported that the UANI set its sights on KPMG “after [a] week-long campaign against Ingersoll Rand ended with the Dublin-based diversified industrial company announcing on March 8 it was instructing its subsidiaries not to sell products ultimately destined for Iran.”

We contacted KPMG for comment but have not yet heard back regarding a response from the firm.

According to the letter, UANI will take “any and all action we deem necessary to hold KPMG accountable for its inappropriate business relationships with Iran,” which sounds pretty serious. Although we’re not sure what ‘any and all action’ will entail but for T Fly’s sake, we suggest he gets this resolved sooner rather than later. If he doesn’t, he can expect calls from Bill O’Reilly and his mug next to Ahmadinejad’s on the Factor.

KPMG is latest target for activists seeking to cut corporate ties to Iran [FT]

Imprisoned Ex-KPMG Partner Sentenced to 57 Months for Defrauding IRS

Today in insult to injury news, Bob Pfaff, who pleaded guilty back in the fall for conspiracy to defraud the IRS, was sentenced today to 57 months for his tax untruthiness. He was also ordered to pay the IRS over $1 million in restitution. The bright side for Pfaff is that Judge Richard Berman ordered that only three months of this new sentence would be served consecutively. After 97 months, an additional three will be nothing. That’s just half of a baseball season.


Pfaff is already serving a 97 month sentence for his role in the KPMG ‘tax shelter mill’ that originally involved 17 KPMG executives. Charges were dropped against all but four of the accused after it was determined that prosecutors had pressured the Firm to not pay their legal bills.

Seemingly this marks the end of this particular KPMG/tax shelter case. Another recent case involves Daryl Haynor, a partner in the Tysons Corner office. Mr Haynor was indicted back in the fall for allegedly conspiring to defraud the IRS to the tune of $240 million.

Ex-KPMG Partner Pfaff Gets 57 Months for Tax Crime [Bloomberg BusinessWeek]

KPMG Knows You’re Feeling Like a Fatty

Yes. You. Spending day after day at that desk, consuming a steady diet of red meat, bagels loaded with cream cheese that is going straight to your [insert problem area] and, of course, caffeine. Sweet, sweet caffeine.

It all adds up to a bunch of tubby Klynveldians, and tubby = not happy. This is not lost on the leadership at KPMG. They want you to know that they want to help you lose that paunch ASAP and they are prepared to offer you a human being to assist you.

According to the Centers for Disease Control and Prevention, more than one-third of American adults are overweight, and many people are actively seeking a solution for weight loss. Losing weight isn’t just about looking better in the mirror—being overweight can contribute to a range of health issues, including heart disease, diabetes, hypertension, and even certain types of cancers.

Lots of us have tried to lose weight, but find ourselves giving up because it can be tough to do. But what if you had your own weight-loss coach, someone who could provide personalized guidance about nutrition and exercise, and provide strategies geared toward your specific situation? What if you could call that coach as many times as you wanted over a six-month period, when you had a question or needed some encouragement?

You can have just that, at no cost to you, thanks to KPMG and LifeWorks through the iCanChange program. iCanChange gives you access to a dedicated, experienced and credentialed health coach who will help you identify goals, strengths, challenges, and strategies for managing your weight.

You will be able to receive four scheduled calls from your coach, and you can call him/her as many times as you would like over a six-month period. Your coach will help you track your progress and set realistic goals to lead you along the road toward losing weight.

So, just who exactly is KPMG recruiting to help these numbers nerds get back in fighting shape? Richard Simmons? Chuck Liddel? Phil Mickelson?

Assuming this doesn’t have to wait until after busy season you best get crackin’ in case Radio City announces its own Canadian Tuxedo reprieve. Fat guy in a little denim coat is not a good look.

Alexandre Bilodeau Is KPMG Canada’s Phil Mickelson

When our Olympic Fever started last weekend, we had no idea what would happen. Sure there would be torches, majesty and endless montages but if you had told us that we would discover that KPMG has got dibs on a marketing dynamo like Alexandre Bilodeau, we would have said NFW.

AB was the first gold medalist for Canada in the Vancouver games. He won the Freestyle Men Ski competition on Sunday and now he’s got people just throwing money at him.


However, Al has had KPMG as a sponsor since 2006 (longer than Phil!) when he competed in Turin, Italy (the old man is a tax partner). All these new companies that want a piece of Golden Boy are going to have to get behind T Fly and Co. because Al strikes as a loyal guy.

KPMG Canada nailed this one. This dude is young, handsome, and doesn’t have to worry about a slimeball rival returning to steal the thunder. Now if he could only win the U.S. Open…

KPMG Boston Is Sprucing Up the New Headquarters, Sans Sign

This morning we shared with you the news about Deloitte’s new nightlight in San Jose. Back on the right coast, KPMG Beantown is getting a little redecorating done themselves although it sounds a little more substantive than a sign that can’t send morse code to San Fran in case someone needs an extra intern.

KPMG bestowed Jones Lang LaSalle with the honor of designing the interior of the new digs at Two Financial Center and it sounds like all Klynveldians will be infinitely more productive at the new HQ. 96,000 square feet of pure auditing, tax, and advisory bliss:

The interior will enhance workflow efficiency and accommodate KPMG’s growth requirements, which include capacity for 692 employees. Highlights of the build out, valued at $5.8 million, include: a central reception area on floors one and two, a large conference center with full media capabilities, an employee café, dedicated Human Resources suite and open office areas.

By the sounds of it they’re implementing some sort of Feng Shui strategy that will result in robotic efficiency.

We’re thinking that less than $1 mil a floor sounds like a decent deal but no sign? How the hell is that worth it? It probably wasn’t up to the gang at JLL but they could have at least looked into it. If the British invade again, a warning from the four blue squares would go a long ways towards KPMG’s national security cred.

Who Will Be the Next Chairman of KPMG?

Yesterday we told you the sad news that Tim Flynn will not be serving another term as Chairman of KPMG.

After taking the time to compose ourselves and realized that life will somehow go on, we had questions. Figuring you had some of your own, we’ll throw a few out there for some discussion. These will range from the obvious (i.e. headline) to the inane but they are all of equal importance:

• Why Tim? Why?

• Is the Davos trip the last hurrah and if so, what is doing to celebrate/reflect/mourn?

• If he’s not taking Tim Geithner’s job then what? Will T Fly defect to one of the other Big 4? Launch a blog? Ponzi scheme?

• How does Phil Mickelson feel about this and does this mean he will keep TF on the bag or is this an honor reserved only for the Chairman?

We may not have covered everything here so chime in with your questions or simply respond to those we’ve put out to the group. And please, if he happens to change his mind, notify us immediately.

Tim Flynn Will Not Serve Another Term as Chairman of KPMG

Tim Geithner better be paying attention. This could be your successor.

As you may know, my five-year term as U.S. Chairman ends in June of this year. Late last week, I informed the Board and subsequently announced to the partners, that I have decided not to serve an additional three-year term as U.S. Chairman after my initial term ends this June, as permitted by the firm’s governance.

This decision was made after much thought and personal reflection. KPMG’s partnership agreement has a well-defined and time-tested set of protocols in place whereby the Board of Directors is expressly responsible for managing the succession process for Chairman. Over the next 60 days, the Board will execute that process, the planning for which began late last summer.


Our firm has an outstanding group of partners and an effective, seasoned leadership team that is focused on our partners and employees, our clients, and the marketplace.

You have my personal commitment that I and the entire leadership team will remain focused on these key priorities throughout the remainder of my Chairmanship.

Thanks for all you do every day for KPMG.

Chairman_Succession

Tim Flynn at Davos: We’re Moving Toward the Green Light of Trust

After wondering aloud if the Big 4 was just going to spend the entire week at Davos chasing blondes and eating chocolate some of the more easily rankled of you pointed out that Tim Flynn was all business and had already given an interview with CNN. Plus, since we saw Dennis Nally this morning it would seem like there is work being done. God forbid the guys do anything fun while they’re over there.

Anyhoo, we finally got around to watching TF’s chat with Richard Quest at Davos and we thought he did a pretty bang-up job. One thing we would have done different — if we were T Fly that is — was ask DQ why we were excluded from the last CNN interview. “What about it CNN? I’m not good enough for APEC piece but you’re happy to include me on this little campout?” Or something to that effect. We imagine that he was asked to keep it cordial.


Back to business: The one thing that threw us off was the red light/green light of trust thing. Trust doesn’t really strike us a color, least of all green. Think about it: Green = money = Goldman Sachs. Plus, has T Fly seen those tea party people? They don’t trust anyone. See why we’re confused? If you get it, please explain, but watch first.

KPMG Haiti Relief Effort Details

We finally nailed down some specifics from a trusted source on KPMG’s efforts to assist with Haiti relief.

The Americas Region (U.S., Canada, Central and South America, and Israel) have contributed $300,000 to the efforts so far, with a total goal of $500,000. These are the combined contributions of the both the firm and its employees. The International firm has pledged $500,000.

All contributions are going to UNICEF and Save the Children.

If you’ve got updates on your firm’s efforts or if you would like to notify us of what your firm is doing to assist the efforts in Haiti, email us at tips@goingconcern.com

Earlier:
We Knew Accounting Firms Were Helping Haiti

The Latest Challenge for KPMG Employees

Team, KPMG has submitted a challenge to its employees in the Florida/Carolinas/Puerto Rico neck of the woods, and we felt compelled to include the rest of you, just for the sake of expanding the brain pool:

Name the Business Unit Contest
January 22, 2010
How do you describe the most scenic business unit in the nation? From the mountains and outer banks of Carolina to the Everglades and beaches of Florida and the rain forests and blue waters of Puerto Rico, we have it all!
As the former FBU and CBU business units come together, we thought it would be fun to invite each of you to participate in a contest to name the new BU. In addition to bragging rights, a prize will be awarded to the person who submits the winning name.
Remember…be creative and have fun!
Send your ideas to US-FBU CSS COMM Leadership Mailbox by Friday, January 29, 2010. A prestigious selection committee will make the final selection and the winner will be announced by Friday, February 5, 2010.

Lost of questions here: 1) It’s busy season; between reading this fine publicaion, trying to get laid, and wallowing in disappointment, who has time to come up with name for the FlorinasRico business unit? 2) Who’s on the prestigious selection committee and how did they get this cushy gig? 3) Does Phil Mickelson figure into this prize in any way, shape or form? 4) If yes, will Tim Flynn be caddying for you, Phil or both?
You’ve only got until Friday to submit ideas, so we suggest you get on this ASAP.