Category: Big 4

If it happens at a Big 4 accounting firm, we’re talking about it here.

Compensation Watch ’10: Deloitte Is Kicking Around Some Numbers

Last we checked on Deloitte’s compensation news, it was news of the wealth being spread around more than last year, although no one was really impressed based on the discussion that followed.

But now out of Ronaldo Fan Club HQ we’ve got an opening bid:

“It was announced at a Tax meeting last Monday that the average raise for NE Tax would be 5% this year.”


Since Dr. Phil recently said that raises weren’t going to return to “pre-recession levels” an average raise of 5% may be in the ballpark. Then again, this is only the tax practice…

Anyhoo, our source told us that reactions boiled down to:

1. After axing or transferring everybody from the Stamford, Wilton and Hartford offices, they better pay the remaining people more!

2. At least it’s more than the average of 0% last year…

If you don’t fall into either camp 1 or 2, make your opinion known. Otherwise, get back to watching your fantasy team suck.

Promotion Watch ’10: Ernst & Young Names 126 New Partners in the Americas

To please you hair-splitters, that number includes principals. E&Y also named 62 new executive directors and 19 new directors.

It’s been a couple weeks since the announcement but we finally were able to run down a few details on the new partners at E&Y:


We’re not sure why Howe had to slip in the diversity soundbite there but he did. Thoughts?

In terms of the breakdown, right now we only have a few specifics so far out of the Northeast:

Of the offices in NY, MA, CT, RI, and NJ, we had a total of 16 new execs: nine tax, four advisory, and a whopping three assurance.

If you’ve got more details, let us know. Congrats to the new PPEDDs at E&Y!

Happy Birthday Phil Mickelson!

Philip Alfred Mickelson was born 40 years ago on this blessed day (shares with 2Pac!) and we’re guessing it will be a busy one for the reigning owner of the World’s Ugliest sports jacket.

We imagine he kicked things off with 40 Krispy Kremes donuts for breakfast, followed by a little prep round for this week’s U.S. Open, Five Guys for lunch, maybe another practice round and wrap it up a nice dinner with the fam.


All the while, screening calls from Tim Flynn who desperately wants to wish Phil a happy 40th, good luck on his quest for the KPMG Grand Slam and to congratulate him for the umpteenth time on his third Masters Tournament victory.

It really is a big week for Phil/KPMG, as the U.S. Open has dogged PM for his entire career and a good performance this week (i.e. anything less than a win is unacceptable) could vault him over Tiger Woods who has other problems.

So send some Happy Birthday/good luck/Father’s Day/thanks-for-wearing-our-hat-for-$3-mil-a-year wishes to Phil below or just let him know what you think his chances are.

Is KPMG Moving Out of DC?

Maybe! The AP is reporting that KPMG is expanding its Fairfax County Office (i.e. Tyson’s Corner) by moving people from its DC office.

According to an accountant close to the situation, “The Tyson’s Corner office switched buildings, and as a result, had a large amount of available office space. The DC advisory practice (including IRM or whatever it’s called now) moved from the M Street office to Tyson’s. I used to sit on the 7th floor whenever I worked from the office, but the place was in full move-out mode when I went in on Friday.”


Residents of the commonwealth will be thrilled to know that Virginia’s governor approved a $250,000 grant from the Governor’s Opportunity Fund for the “project.” In other words, Virginia taxpayers footed $250k to move dozens of coffee guzzling, poorly dressed 10-key tramps out of the District. And it turns out, many aren’t thrilled about it, “Advisory people are bitching about moving, especially the ones who live in the District.”

But our source also says that the rest of DC office might be packing up:

There’s rumors that the entire DC practice will be moved to Tyson’s, but I don’t know if that’s true [let’s just assume it is, shall we?]. KPMG might be the only one of the big four who still has an office in DC proper, but then again, we’re the biggest of the big four when it comes to Federal clients – and there’s a certain cachet to having that office building in Dupont Circle with the big “THE KPMG BUILDING” emblazoned on the side. [O]therwise it’s been the usual hooplah from management and torrent of “OMG SO EXCITING!” emails, and the staff I know are mostly just “meh.”

If it comes to leaving the District altogether, John Veihmeyer will probably just buy the sign and slap it on the side of his summer house. Can’t let something like that go to waste.

(UPDATE) Compensation Watch ’10: Are Raises Looking Bleak at E&Y?

It’s been awhile since we’ve heard any news on the E&Y comp front but we finally received a preliminary report from one source late last week:

[Roundtables] went the same way they always go. Surprisingly, less pushback on proposed ratings for the portion I was involved in. I really think they may be scared to lose more people. Indications are raises will be low (3-5% range for most, more for 4/5 rated people) Bonuses are probably non-existent for the masses. Annoucements of promotions for other levels will be made in August (staff to senior, senior to manager, manager to senior manager) they will also do comp increase discussions then. Effective 10/1…


So despite Ernst & Young re-reassuring merit increases the 3-5% for the meaty part of the curve and no bonuses isn’t exactly what “the masses” were expecting.

That being said, this office may be catching some bad luck since we that at least one E&Y partner was confident that the raises would beat PwC’s.

Although, some lucky E&Y soldiers have seen some “spot bonuses” for their hard work but it’s not clear how widespread that generosity is.

On a marginally-related note, we’ve received word that the partner promotions were announced but we’re still trying to run down some details. Get in touch with us if you’ve got the scoop on the new partners, what you’re hearing about comp in your office and discuss below.

UPDATE, Wednesday June 16th: A couple more accountants familiar with E&Y have their own take on the comp situation:

I heard that we “we’re not going to be disappointed with raises” here at EY. I don’t know what that means. And I tend to believe, that as you posted today, 3-5%, is a more realistic view of what’s going to happen (though that’s just my own pessimism).

and that is coupled with another source, “Haven’t heard anything further on comp other than ‘moderate.’

Continue attempting to decipher the latest. As you were.

Satyam: Does Anyone Mind if We Take Another Three Months to Finish Our Restatements?

With just a couple weeks until the June 30 deadline for the company to issue its restated financial statements, Satyam is requesting just a little more time to get this mulligan nailed down. Three months to be precise.

Yes, they’re completely aware that it’s been nearly 18 months since the shit hit the fan. And yes, this is the third time they’ve asked India’s Company Law Board (“CLB”) for an extension on the filing but at this point they figure expectations are so low, no one will get too worked up over it.


Except for an “analyst with a leading brokerage house.” who is quoted in the Business Times, “There is no clarity on what is happening within the company. They should have at least provided the current sales figure or the bench strength. How is the shareholder supposed to rate their stock?”

Since more than a few people might be caught up in “sales figures” and whatnot, Satyam went to the trouble to let everyone know that they’re working hard, ordering in, etc. etc. so you can rest your pretty little heads:

A Satyam official said, “The records have been under the custody of investigating agencies and we recently got a court clearance. Also, our auditors (KMPG and Deloitte) told us they need some more time for the restatement. It’s only a matter of a quarter.”

See? It’s just a matter of a quarter. Plus, you can’t really blame them – KPMG and Deloitte are the ones saying they need more time. Satyam has likely been bugging them for months about wrapping up but KPMG and Deloitte are probably complaining, saying things like, “we can’t find any documentation to supports these numbers” and “this doesn’t add up.”

So, TFB if some whiny analysts don’t like it. We’ll just find out just how big of nightmare these financial statements will be in due course.

Everyone at Deloitte Worked for Free Today

As you may or may not be aware, it’s Deloitte’s 11th Annual Impact Day today:

“Deloitte is providing hundreds of nonprofit leaders from across the country with valuable counsel to help them deal with common business challenges, at no cost.”

That’s right friends, no one is – gasp – billing time! It’s a 100% green dot free-for-all across this great land.


However, we did speak to one source at the firm who told us that they haven’t participated in Impact Day in 3 years, “everyone leaves me alone so I can get something done,” so despite the message at Deloitte HQ that “no one is available to take your call,” and what you’re reading on Twitter, we know some people are working.

Obviously that’s lame but the real question is how many Green Dots called in sick and are currently getting blitzed watching the World Cup? And keeping an eye on their fantasy teams? AND maniacally laughing while watching Barry Salzberg live Tweet the whole day?

The KPMG New York Exodus Picks Up Steam

Last month we touched on a possible exodus starting in KPMG’s New York office with the news that a number of people had given their notice to leave the firm. A few readers were not impressed with the news including Hyperbole:

6 people leave a massive office in an industry that even in a slow year expects 10-15% voluntary turn. I’m all for ripping on the firms, but this is a little ridiculous…

“DAMANGE CONTROL BEGINNING: 26 FANS LEAVE LAKERS GAME AT HALF TIME

EXODUS!!!!”


However, another commenter, blah felt that this was just the beginning:

I believe the exodus is coming. Folks are pretty pissed off these days and there are a lot of career opportunities out there right now for us.

Now, here we are, a month later and it sounds as though the numbers are increasing quickly as we have had multiple sources confirm that approximately 12-15 professionals have given recent notice between the banking and asset management groups – two of the largest in the New York office. The majority being SA2s, SA3s as well as experienced managers.

Our sources have indicated that many more are actively looking and that this is not the “normal attrition” that is expected by a firm. One recent SA that gave their notice was kind enough to send us a copy of their farewell email that sounds – oddly – inspired. After drying your eyes (or throwing up in your mouth), feel free to discuss the latest conga line going out of 345 Park.

Allow me to leave you with a few words of inspiration on this most joyous day:

BLOOD ALONE MOVES THE WHEELS OF HISTORY!

Have you ever asked yourselves in an hour of meditation – which everyone finds during the day – how long we have been striving for greatness?

Not only the years we’ve been at war the war of work but from the moment as a child, when we realize the world could be conquered. It has been a lifetime struggle a never-ending fight, I say to you and you will understand that it is a privilege to fight. WE ARE WARRIORS! Accountants of New York City, I ask you once more rise and be worthy of this historical hour. No revolution is worth anything unless it can defend itself. Some people will tell you accountant is a bad word. They’ll conjure up images of used car dealers, and door to door charlatans. This is our duty to change their perception. I say, accountants of the world… unite. We must never acquiesce, for it is together… TOGETHER THAT WE PREVAIL. WE MUST NEVER CEDE CONTROL OF THE MOTHERLAND…

PwC May Have Overlooked Billions in Illegal JP Morgan Transactions. Oopsie.

Now £15.7 billion may not seem like much to you if you are, say, Bill Gates or Ben Bernanke but for PwC UK, it may be the magic number that gets them into a whole steaming shitpile of trouble.

UK regulators allege that from 2002 – 2009, PwC client JP Morgan shuffled client money from its futures and options business into its own accounts, which is obviously illegal. Whether or not JP Morgan played with client money illegally is not the issue here, the issue is: will PwC be liable for signing off on JPM’s activities and failing to catch such significant shenanigans in a timely manner?


PwC did not simply audit the firm, they were hired to provide annual client reports that certified client money was safe in the event of a problem with the bank. Obviously that wasn’t the case.

The Financial Reporting Council and the Institute of Chartered Accountants of England are investigating the matter, and the Financial Services Authority has already fined P-dubs £33.3 million for co-mingling client money and bank money. That’s $48.8 million in Dirty Fed Notes if you are playing along at home.

Good luck with that, PwC. We genuinely mean that.

Inquiries mount after PwC ‘failed to notice’ mistakes [Times UK]

Let’s Welcome the KPMG Interns with…

…kind words from John Veihmeyer? Obviously! Bagels with schmear? This isn’t 2007. Happy hours where the booze flows like wine? TBD.


The Klynveld interns started this week (an official Tweet from the KPMG Go says there’s over 1,000 coffee go-fers this summer) and we hear they’re starting out with some stimulating training for a couple of days before they head to national training which we hear will be at a HoJo in Fargo, ND. Cutbacks, you know.

We know some of you KPMG vets will be asked to mentor these blades of grass and we’re a little curious about what the guidance has been re: coffee, lunches, booze etc. since TPTB are still squeeze all the hairs out Lincoln’s beard but still want you to convince the hot and/or smart interns that KPMG is the place they want to be.

Anyhoo, we’ll try and bestow some wisdom on this year’s crop with some key thing to remember:

1. Get things started off right and start kissing the new managers’ asses.

2. Business casual does not consist of sweat pants.

3. If we send you on a scavenger hunt, try not to make it obvious.

4. Showing up with booze on your breath isn’t allowed until you’re well into your first year as full time employee.

5. We’re out of ideas… help them out.

All Deloitte New Hires Want to Do Is I-F-R-S

No, really. They made a song:


Items of note:

– “Spin that beat” had to be requested twice.

– Things don’t get really serious until #20 gets off the stage.

– #21 didn’t know the words but managed to do the arm swinging quite well.

– The line, “My workpapers don’t lie” is obviously a lie. Everyone ghost ticks at some point.

– Calling out the tax practice for not having any swagger is a little presumptuous.

Other thoughts? Go.

Is Ernst & Young Quadruple-Checking Your Expense Reports?

A curious mind out of Casa de Turley:

EY just moved to a “new” (basically the same, but it does look more flashy) expense reimbursement system in the US. Along with that move though, my expense pay back times have increased from usually about a 2-3 day turn around for approval to a 5-7 day approval. While it’s not unheard of that it would take that long, I was wondering if other EY people were experiencing the same payment delays and what this could be signaling? Just slow/less staff processing expense reports or is this some sort of cash flow management? I’m not sure that that even makes sense since we bill the client for the expenses, so it puts off the billing process as well as the reimbursement process.


As to why and how this happening, we’re guessing that those of you that got into the habit of going to Bobby Vans twice a month, playing Omaha, Hold ‘Em et al. on the web and lap dances and somehow convinced yourself it was business related have finally broke the proverbial camelback. It’s either that or Jim Turley is pulling up his boot straps and checking every single expense report himself.

Other theories or wild-ass guesses? Fire away.