Doubtful! But with the news of sugarplums dancing in some Big 4 heads, we got to wondering if any of the offices of KPMG and PwC might reconsider the firm-wide kibosh on the Holiday jamma-lamma-ding-dong.
Maybe this would be a coup d’état of the highest order but we’ve heard of offices going rogue in the past, so it’s worth mentioning.
Perhaps we’re expecting too much but it seems possible that partners in your local offices could rally the troops by pooling together some of their own cash and springing for cheese trays a few kegs of Beast.
Partners, you wouldn’t necessarily have to let anyone use the bathroom (especially the new associates, we know how they overdo it). You could set up Rent-A-Johns in the driveway.
Because as it stands right now, it appears that Bob Moritz will only be handing out fresh undies, and Tim Flynn will argue that the Phil Mickelson sponsorship is the gift that keeps on giving. That may fly with some but certainly not all. Discuss your hopes for an eleventh hour fiesta in the comments.
Category: Big 4
If it happens at a Big 4 accounting firm, we’re talking about it here.
At the Deloitte Holiday Party You’ll Have to Mill Around While Trying to Avoid the Guy Mopping the Floor
We have confirmed the comment that mentions the Deloitte Holiday parties going down in the lunchroom. According to our source, this makes two years running that D has thrown it down in the caf which was a step down from the epic ’07 rager at the Waldorf. It’s not that nice of a hotel anyway.
Personally, we were hoping that Barry Salzberg was going to encourage everyone chip in and build the location of this year’s festivities with their bare hands but it might be too late to get that project started. Maybe next year.
Obviously this is less than ideal because 1) it’s definitely not a full bar and 2) instead of catering you’ll have to choose between what you think is salisbury steak and chicken a la king.
As far as atmosphere, we will admit that this is less touristy than TOTG but still. And what about the poor saps in Parsippany? Training rooms A – C? Jesus. Nothing better than crushing beers in the room where you were introduced to the FASB Codification.
The Holiday Spirit Is Alive and Well at Ernst & Young
After a rough week of layoffs at E&Y we’re glad we can bring you some good news out of the Ernstiverse. After our reports back in September that the New York office that there was going to be no Christmaskah festivities, the FSO practice has had a change of heart:
Not only are the partners in FSO encouraging you to have a cup of cheer, they’re helping out a financially troubled New York institution.
We reached out to one source in FSO who had these thoughts:
I think for the most part people are very surprised we are having a party, and there is definitely a mixed feeling. Most would rather have gotten a raise, but apparently we got a great deal from Tavern so if there are no raises we might as well have a party!!
Since we don’t have many details at this point, important questions remain: A) Are you going? B) Open bar or GASP beer and wine only? C) Will there be dancing? D) If so, will Jim Turley be there getting his (rumored) $6 million man groove on?
Photos please, especially when he’s doing the sprinkler dance. Keep us updated with the details.
In the Spirit of the Season, Deloitte Is Giving You a Bigger Inbox
First off, you’re welcome. And they already hear your bellyaching you ungrateful brats so CUT. IT. OUT.
Second, they had to do it because, as you may or may not be aware, the increasing number of emails being sent and received just might be a sign that this economy is turning around:
I’m not yet convinced that the increase we’re witnessing in the number of e-mails (and e-mail size) is an early indicator of economic growth…but just in case, we are increasing the size of your e-mail mailbox by 50 percent.
Effective immediately, you will now have 600MB to do with as you wish (of course, don’t forget our communications policies enshrined in APR 208, which will undoubtedly both constrain and guide your rush to fill that additional 200MB void). Also, the 600MB is in addition to the almost unlimited e-mail storage on your laptop using PST files.
OK…I can hear a few of you grumbling, “but Google gives me at least 1GB…for free.” Sure…but does Google provide a free laptop, a free PDA, a world-wide directory, e-mails you can search while on a plane, technical support where a live person answers the phone, and ITS walk-up support in your local office staffed with smiling IT professionals anxious to serve you? I rest my case.
One last note: Increasing your mailbox size should not be construed as an invitation to avoid reading, deleting or filing messages…or using your mailbox as your central music repository.
Enjoy the space…consider it an early holiday gift.
As always, click here to respond or provide comments. They are always welcome.
Larry Quinlan
Chief Information Officer
Deloitte LLP
Barry Salzberg Makes Bob Vila Look Like a Lego Master
Barry Salzberg took time from talking up his chief rival for the Global CEO spot the new Deloitte Consulting CEO to write a piece for the Washington Post about how corporate philanthropy is alive and well.
You’re probably aware that this isn’t Dr. Phil’s first foray into virtual print. Not only has Salz given imaginary advice to the POTUS but he also did a “freewheeling” piece for Fortune on volunteerism.
The latest WaPo piece rings the same charitable note (although it’s considerably less freewheeling) and reminds everyone that not only will Deloitte continue to cut checks, they will also provide “skilled volunteers.” This is clearly part of the ongoing effort to not be seen as a giant faceless, professional services firm but a giant professional services firm that has mustache that may have buried treasure in it and a clean scalp that you can barely resist rubbing for luck.
Now while these “skilled volunteers” could possibly include the best and brightest giving NPOs the lowdown on double-entry accounting, you’ll note that the piece is entitled “Getting our hands dirty”.
Since it’s probably been many moons since the big guy has looked at a spredsheet — and he doesn’t really strike us as the type of guy to speak in metaphors — we’ll assume that he’s literally getting his hands dirty. That being said, we definitely envision something with a tool belt and possibly coveralls with an expertise in drywall or indoor plumbing.
If you’ve got thoughts on Dr. Phil’s latest scribal effort or what kind other blue-collar skills he has, discuss in the comments.
Getting our hands dirty [Washington Post]
Reports of Ernst & Young Layoffs Still Trickling In
We thought E&Y layoffs had finally quieted down but unfortunately late yesterday we learned of an additional ten cuts in the tax practice of the North Central region including Cincinnati, Detroit, and Pittsburgh.
These cuts in Cincy and the ‘Burgh are on top of the initial cuts we reported but this is the first tip we’ve received about layoffs in Detroit. Jump back to the main thread for the latest discussion and continue to keep us informed with details.
Satyam Would Like the U.S. Lawsuits Moved to India, Oh, and PwC Would Like to be Left Out Altogether
Satyam wants the U.S. Courts to kindly BTFO of business that should be handled in India. Specifically these silly fraud lawsuits.
Besides, PW India has already said that they want to bury the hatchet, so they feel that this whole will be best handled in the Eastern Hemisphere:
In a court filing yesterday, the software-services provider said it was joining a motion by its auditors, Price Waterhouse and Lovelock & Lewes, to dismiss the American fraud suits brought by investors.
“This case belongs in India,” the auditors wrote. “Satyam’s alleged billion-dollar fraud, as well as the allegedly improper audit, took place in India. Virtually all of the defendants are India-domiciled companies or individuals.”
P. Dubs India and Lovelock want the whole thing dropped since they were acting on the honor system. Annnnnnnd, since PwC International doesn’t have control over any of the individual firms they’d like it very much if the judge just dropped them out of this thing too:
PricewaterhouseCoopers International Ltd. said it should be dropped from the case because the investors failed to show it had control over its Indian member, Price Waterhouse, as is required by U.S. securities law.
From the looks of it, no PwC firm wants to be responsible for anything that went wrong with Satyam even though they signed the audit report. Fine, so can we agree that audit opinion was worthless? That’d be great.
Satyam Says U.S. Fraud Suits Must Be Moved to India [Bloomberg]
Ernst & Young Severance Negotiable?
Everything is negotiable, amiright? We heard that staff in one North Central office were given one month of severance but at least one person made a big enough stink that they ended up with three months. Personally, we thought the Big 4 was pretty inflexible on this point but hey, if it’s true, nice work.
Jump over to the main thread to check the latest discussion and if there are still details to be reported, get in touch.
Deloitte Names New Partner in Charge of Southeast Region
Some leadership changes for Deloitte are being reported in the DC area, as Gary Tabach will be the new partner in the charge of the Southeast region:
Gary Tabach, Deloitte LLP’s Greater Washington managing partner, has been promoted to vice chairman and regional managing partner for the accounting and consulting firm’s Southeast region.
He is replacing Maritza Montiel, who has been named managing partner of leadership development and succession.
Tabach now oversees some 10,200 staffers in 20 offices from Baltimore to San Juan, Puerto Rico.
Mr. Tabach still has to do most of the heavy lifting for his old job as he will remain the DC managing partner.
Ms. Montiel’s new position, managing partner of leadership development and succession, strikes as mysterious. That particular title gives the impression that she is “partner in charge of telling other partners that they need to lock it up or they’re fired”. If we’re in the ballpark let us know and keep us informed about any leadership changes for your office or region.
Deloitte’s Gary Tabach lands bigger regional role [Washington Business Journal (subscription required)]
Earlier:
New Deloitte Consulting CEO Plugs Magazine Lists, Shuns Facebook Fans
More KPMG Leadership Changes
Just a brief update on KPMG leadership moves that we’ve been following.
Late Friday we learned that the office managing partner (“OMP”) of the New York office has been promoted to serve as the Vice Chair of Market Development. Our understanding is that all the OMPs across the country will report to this position and it will focus on 21 key markets in the U.S.
The former head of the New York Financial Services will move up as the new New York OMP. No word on who will fill the leadership role in NYFS.
This appears to be the first instance where the OMP was promoted to a national position as opposed to a “client-facing role”.
Continue to keep us updated with the latest on the comings and goings of the grand poobahs and discuss your thoughts on the progress of the restructuring in the comments.
Earlier GC coverage of KPMG Leadership Changes and Restructuring:
Another KPMG Shake-Up
KPMG Shake-up Continues
Rumor Mill: KPMG Restructuring Plans
(UPDATE 2) KPMG Atlanta Shake-up Makes Us Wonder
CNN Says that Big 4 Business Is Blowing Up
That’s not necessarily verbatim but they’re definitely buying what the Big 4 bigwigs are selling.
If you saw the asinine CNN piece that came out on Thursday entitled “Accounting grows in shrinking economy“, you know what we mean.
The title itself should cause you to throw up in your mouth. Certainly the author of this gem, Kevin Voigt, isn’t talking about growth in revenues but he still manages to make a case for accounting industry stre trong>just that:
[T]he firms have emerged from the worst with balance sheets that would be enviable to most companies: Ernst & Young and Deloitte finished the 2009 fiscal year with flat growth, while PWC revenues were down 7 percent.
Getting nauseous yet?
Then there’s this:
[T]he Big Four firms continued to add to headcount through the recession. For example, PWC will end the year with 163,000 employees worldwide, an increase of “3 or 4 percent” from last year, Nally said. “There is a core element of what we do that continues regardless of the economy — public companies need audits, tax services need to be provided,” he said.
First, we notice that Dennis Nally conveniently left out that the ‘core element’ of services being provided is being done so with far fewer people. He makes it sound like that if you’re working in the audit or tax practices, your job is safe. We all know that’s not true.
Further, we’ll point out that E&Y did not add to their global headcount. That’s according to E&Y’s own press release for their revenue results.
It’s also interesting to note that the words “layoff” or “reduction in force” are nowhere to be found in the article. Voight manages to sneak it in with some subtlety:
Ernst & Young has kept hiring young college graduates, in part, because it wants to ensure an unbroken pipeline of talent after the crisis, Turley said.
“In a typical year, you would see 15 to 20 percent of our workforce hired away, not by our competitors, but by companies that need financial or tax or other financial talent … that process was curtailed this year because most in the marketplace weren’t hiring,” Turley said.
As a result, Ernst & Young and other Big Four firms have had selective culling of staff in some markets for performance-related issues. “We work in a high performance environment, and for those whom that environment doesn’t fit we’ve encouraged them to leave,” said Quigley of Deloitte.
“Culling of staff”? Interesting choice of words. Then Jim Quigley lies says that Deloittians were “encouraged” to leave the firm. That’s rich. Any former Deloitte people out there that would describe their experience differently?
The article also hints that — because Jim Turley said that typically, ’15 to 20 percent of our workforce hired away’ — the Big 4 had no choice to but to engage in the “selective culling of staff…for performance-related issues.”
To top it all off, Tim Flynn wasn’t even interviewed for this piece. In fact, KPMG is only mentioned ONCE in the whole article but Voight refers to the “Big 4” throughout. From the sounds of it, TF wasn’t in Singapore for the APEC and thus, probably not available (probably caddying). Just as well, if we were T. Flynn, we wouldn’t want our name included in this travesty anyway.
So gives us your thoughts on the latest Big 4 campaigning in the MSM. They make everything sound like it’s business as usual but as the discussion in our Exodus post indicates, the people on the front lines probably have a different opinion.
Accounting grows in shrinking economy [CNN]
Also see: CNN Lies: Accounting Industry Stronger Than Ever, Explosive Even [JDA]
GC Weekend: Update on Ernst & Young Layoffs
We received more details late yesterday on the E&Y layoffs. The latest cities reporting layoffs are now Minneapolis and Milwaukee.
We also learned that there were approximately ten layoffs in the tax practice last month in the Chicago office. These were all at the associate and senior associate level.
Check back to the original thread for the latest and continue to keep us updated.