Category: PwC

PwC Gives KPMG a Break, Appoints Insider as New Head of U.S. Tax

I guess it was funny the first four times (and that doesn’t count the chumps that don’t get press releases) but for the extra special positions, P. Dubs must prefer to keep things in house.

Mark J. Mendola has been named as PwC’s U.S. Tax leader and a vice chairman of the firm. He will also serve as a member of the firm’s U.S. leadership team and the global Tax leadership team. Additionally, he will be responsible for the network of Tax practices across the Americas, including Canada, Mexico and South America.

For those keeping close tabs on this sort of thing, MJM joined PwC in ’86, no doubt inspired to join the tax practice thanks to the efforts of the Gipper & Co. He joined the partnership in ’98 with no indication that he strayed to the HoK. Word on the street is that KPMG is pretty bent out of shape over the competitive poaching, so PwC must be backing off. For now, anyway.

[via PwC]

PwC Associate Quits…To Work For a Food Truck

Sorting through Moanday’s emails, I received one from a very proud (and former) P’Dubber. He wanted to share his resignation letter, where he pretty much tees off on his former colleagues.

An excerpt: “burning bridges ain’t all that bad if people want to jump off of them.”

Thought you guys may enjoy this – my name is [redacted] and this was my resignation letter to PwC I sent to the entire group a few weeks ago…. had to get this forwarded from friends within the group as they confiscated my laptop and disconnected my phone service after i sent this out – also deleted it from everyone’s mailbox by the next afternoon. nonetheless, already has circled around like wildfire. if you do happen to use this – please take out any other names, don’t want word getting back of my moles within the group 🙂

[DWB note: names removed and yes, there’s lots of capitalization issues.]

Sent on : 10/03/2011 06:50:43 PM
Subject : dueces!

fellow underpaid laborers,

no need to bs here, it’s been a pleasure w some, a nightmare w most. my
last words –

to my friends, see you on the flipside

to the newbies, one word: dignity. you are not a part of a meritocracy and climbing the corporate ladder’s just a game. if you a snake, slither your way to the top and look down on everyone with misguided pride. otherwise be real and dont do anything that jeopardizes your values. if you plan on being the future of this group don’t bitch about it together in secret and ruin the sacredness of the pantry, with all that free milk and napkins. and soap. lead by example, not your examples. shit gets pushed down and blame gets pushed up, your boss’s boss’s boss has a boss to blame your grievances on. don’t just be a product of a farming system of the ML of finance. you may leave and feel better, but you’re leaving a bunch of people behind that will go through the same shit you did. respect and loyalty is nonexistent in this group.. act on it. if you can spare yourself a moment in retrospect that you’d remember with disdain, why not. and if this isn’t for you and you already know it stop wasting your time.

to my “superiors”, from the great and timeless Remember the Titans, “Attitude reflects leadership, captain”. oh and this whole external hiring thing is completely hit or miss, the lack of trust in organic growth is pure use-em-while-you-can turn over (pun…HA) culture and it shows.

well, I guess I won’t be getting any recs from here, but f it burning bridges ain’t all that bad if people want to jump off of them.

ohh and to the all bark, no bite HR Manager with an office for midgets, give the man credit for havin some sass, but he has memory issues. the people you told verbatim that sittin for the gmats would be enough, the email that proved it, the way you denied it and put it back on them and didn’t have a care in the world u were losing good talent (not myself of course, letsbehonest), manager of the year. I’d say you were the [redacted] of pdub managers. and don’t text message me man, cmon, seriously? i ask who u are, u reply “your HR manager”? well, not anymore (expletive). and no one likes to be text messaged by middle aged men, no one.

on that note, in the words of the amazing [redacted], dueces!

SHAMELESS PLUGS *YAY*
KorillaBBQ – the new face of Korean BBQ
As seen on the Food Network’s “Great Food Truck Race”
Web: www.korillabbq.com
Facebook: Korilla BBQ
Twitter: @KorillaBBQ

Those of you at PDubs – was it really erased from computers? Do former colleagues get a discount at the truck? We want details.

Thankfully, Dillard’s Disputes with Audit Firms Haven’t Resulted in Anyone Disappearing into Thin Air

Your mother’s third favorite department store, Dillard’s, has fired PwC as their auditor over a dispute related to the timing of a “tax benefit related to its new real estate investment trust.” The Little Rock-based company replaced P. Dubs with KPMG (who will take every chance they can get to stick it to Team Autumn). Basically the two didn’t see eye on this matter (here’s the 8-K that explains it), Dillard’s asked the IRS for their opinion, who said the treatment was kosher and next thing you know, the audit committee was on the hunt for a replacement.

Anyway, this isn’t really news until you consider the fact that PwC had only become Dillard’s auditor in 2009. Deloitte had been the auditor of the company for 20 years and in many auditor-client relationships, that’s just the honeymoon phase. So that seems a little odd. And couple that with the most recent firing of PwC and you’ve got to wonder what’s the scoop is over at DDS. But all that pales in comparison to this:

In 2008, [Dillard’s] had a dispute with CDI Contractors LLC’s chief financial officer [Ed. note: Link is broken], John Glasgow.

At the time, Dillard’s owned half of CDI. It has since bought the half that it didn’t own.

Glasgow objected the way Dillard’s CFO James Freeman was conducting an audit of CDI. Glasgow disappeared during the dispute and was declared dead [Ed. note: Ditto] more than three years later, although no trace of him has been found.

After Glasgow’s disappearance, Dillard’s restated earnings for several previous years, blaming an accounting error by CDI.

The last thing we want to see are pictures of auditors on milk cartons.

Dillard’s Fires PWC After Accounting Dispute, Hires KPMG As Auditor [AB]

Anxious Accounting Student Needs Advice for a PwC “Superday”

Ed. note: Have a question for the career advice brain trust? Email us at advice@goingconcern.com.

Caleb,

I’m an avid reader of Going Concern and I was wondering if you could help ease my anxiety on my Superday coming up fairly soon. I’m currently a senior in a master’s program and I am looking for an internship this Winter. I’ve interviewed with all Big 4 and only managed to score a second round with PwC for a Northeast location. I do have a couple back up offers but really want PwC. Do you have any tips or other insights on these superdays? I often read that the majority of people attending superdays get an offer but I don’t wident. Any insights you can provide would be greatly appreciated.

Thanks,
Anxious Student

Dear Anxious,

I’ll do my best to give you some honest insight on Superdays, although I don’t know if it will quiet your fears.


Your biggest competition at the Superday will be yourself and your choice to pursue a winter internship (presumably tax?). Everyone knows that the summer internship programs are the bees’ knees: barely 40 hours a week; summer outings; awesome schwag. Winter internships, on the other hand, have been traditionally limited in numbers but extensive in experience. This is changing a bit this year, as firms are looking for a small uptick in winter interns to help offset the turnover in staff. The firms’ practices have higher standards for the students they hire for this time of year because they’ll be doing actual work (relative to the summer class). But should you land one of the spots on the winter intern bench, you’ll be poised to rake in a lot of overtime $$$. So, what do you need to do at the Superday to best position yourself for one of the internship spots? Keep your cool. Keep your confidence.

Be flexible. Winter interns are oftentimes from local universities, since many students balance a light credit schedule while putting in long hours at 300 Madison Avenue (or 345 Park, or…okay you get it). If you’re in this position, oversell your availability to work. Think you’re taking 15 credits? Say your’e taking 12. Available on weekends? You bet! They’re looking to hire workhorses, not show ponies. If you’re taking the semester off, that’s great; make sure the recruiter knows this. Talk about your willingness to work long hours and do “what’s best for the team” even if that means working weekends. The goal is to land an offer, not sound like someone with a grasp on reality. “Work the entire month of February and sleep under my desk?!?! Sign me up!!!”

Now, then. General advice for Superdays:

You’re always being watched. Think that the teambuilding event is trivial? Think again. The recruiters will be watching how you interact with the team members. One comment of “this is the dumbest thing I’ve ever done” will get you dinged. Sit down, shut up, and BE REALLY EXCITED TO PLAY WITH MARKERS.

Careful with the booze. Every firm’s 2nd round interview program is different, but be sure to take it easy if there is booze involved. Take a page out of my BFF Patti Stanger’s book: keep it to two drinks. You’ll loosen up, it’ll taste GREAT after the long day, but you won’t get too loose lipped. Just because the evening’s atmosphere is casual, doesn’t mean the office managing partner should know what you’re getting your boyfriend for Christmas.

Shoot for the middle of the fairway. Every in-office interview program has the same cast of characters. The Funny Guy. The Guy Who Thinks He’s Funny But Isn’t. The Girl Who’s Skirt is Questionably Short. The Guy Who is Wearing His Father’s Suit. The Sit in the Corner Special. The Candidate with Too Much School Pride. The Leader Who Doesn’t Know How to Be a Team Player.

Umm, yeah. Don’t be any of those.

Easy on the cellphones. Silence it, turn it off, and only look at it on breaks. Nothing pisses off an over-the-hill recruiter more than watching a room full of Millennials texting and tweeting over their morning fruit salads.

Good luck.

Promotion Watch ’11: KPMG Admits 166 New Partners in the Americas

That’s right boys and girls, 166 new lucky Klynveldians will be taking a seat at the big kids table, only to be poached by PwC in the next 2-3 years. Despite the risk that many of these new partners will trade blue squares for autumnal Atari, John Veihmeyer and Henry Keizer were excited to welcome the newest members of the club:

“These new partners are role models for high performance – with a passion for quality, an unyielding commitment to integrity and outstanding service, and a dedication to helping clients cut through the complexity in this dynamic environment,” said John B. Veihmeyer, Chairman of KPMG’s Americas region and Chairman and CEO of KPMG LLP (U.S.).

“We are very proud of each of these new partners, and we look forward to their continued leadership. We’re especially grateful to the spouses, family, friends, coworkers, and mentors who have played a key role in their development and their career success,” Veihmeyer said.

Henry R. Keizer, Deputy Chairman of the Americas region and Deputy Chairman and COO, KPMG LLP (U.S.) said, “With their steadfast focus on technical excellence, professionalism, teaming and relationship building, these new partners have helped us make great strides in achieving our strategic priorities.

“Their ability to engage and motivate our people has also been critical to our efforts in fostering a high-performance culture – thereby driving the firm and our people to the next level,” Keizer said.

The KPMG press release doesn’t have a breakdown of the numbers but luckily we got our virtual hands on an email that has the breakdown. We won’t name names but it’s probably moot since someone at PwC Experienced Hire recruiting probably has them all on a hit list already. ANYWAY, here’s the breakdown by service line for the U.S. (74 new partners):

Advisory – 26
Audit – 27
Tax – 21

And by line of business:

Information, Communications and Entertainment – 12
Financial Services – 17
Healthcare and Pharm – 5
Industrial Markets – 19
Private Equity – 4
Mid Market – 3
Government/Public Sector – 1
Consumer Markets – 9
Other – 4

Congrats to all the new partners!

[via KPMG]

PwC Manager, Exploring New Career Opportunities, Accidentally Makes Entire Office Aware of It

When looking for a new job, discretion is important. Discussing your upcoming interview during the morning team meeting is typically frowned upon as well as making remarks like “I’m getting out of this godforsaken dump as soon as possible” within earshot of superiors. Another no-no? Not catching the “PwC [Your office] All” in the CC line of your response to a professional recruiter:

Caleb,

Woke up this morning only to find out that someone decided to look for new opportunities. Only problem is that on his reply he copied the entire office of 1900 people. Perhaps a lesson learned for all those auditors looking for a new job.


We’ve presented this in chronological order, so no need to start from the bottom and we’ve redacted the names to protect the innocent and those not too good with the email. As you can see, things get off to a pretty warm start:

[Anxious Recruiter],

I am very interested! How do we follow up on this?

[Anxious-to-get-the-hell-out PwC Manager]

The recruiter, sensing a live one, is on it:

I am submitting your new resume today. When can we talk [Anxious PwC Manager]?

The PwC Manager, sensing a little-too-eager beaver, starts balking:

[Anxious Recruiter],

I am committed all weekend, and will be unable to discuss until sometime on Monday. I hope that’s okay,

[PwC Manager]

Anxious Recruiter, being the early-bird-gets-the-worm type, plays it cool and suggests that they still get things rolling first thing Monday:

Not a problem [obviously less interested PwC Guy]. Can we set a time to talk on Monday? I get in to the office at 745am. I also have a meeting at 10am. I have 2 positions that are remote to discuss. I have already shared your resume with the client and they are interested.

Thanks!!

Sunday afternoon comes with no word from formerly excited PwC Manager and our recruiter starts panicking:

[PwC Manager],

Can we set up a time to talk tomorrow please? It is important!

Thanks!

It’s finally gotten to the point where the PwC Manager has to say, “Look pal, you’re freaking me out. Don’t call me, I’ll call you.”

[Anxious Recruiter who is coming on way too strong at this point],

I am currently traveling and will not reach my destination until after 10:30AM. Let me know what time will work for you after that, and I will try and make myself available.

Thanks,
[PwC Manager]

I know email is tricky but be extra careful with the more sensitive ones, mmmkay?

Happy 100th Birthday PwC Los Angeles!

Things sure have changed quite a bit since 1911 when it was just Price Waterhouse (what do we think the logo looked like?) and no one gave a shit whether working moms had a great place to work. Possibly in an effort to make up for those less diverse-sensitive years, the firm is celebrating their century in L.A. with “100 Years of Service, 100 Ways of Giving Back.”


P. Dubbersteins will spend a few hours sitting in god-awful traffic on their way to two dozen community organizations to do various nice things. And in case you feel compelled to share your story, the firm will let you do that too.

PwC has also built an intranet site with the theme, “What’s your LA story?” to generate excitement and internal buzz about the anniversary. It provides a centralized resource of information about the campaign and serves as another vehicle for the firm’s LA partners and staff to review and sign up for projects. A unique feature of the site is a page allowing people to share personal stories of how they have helped in the community, fostering a feeling of shared commitment and inspiring others to participate.

Sharing stories about how you’ve made a difference in your community is cool and all but I’m sure many current and former PwC L.A. employees have tales from the last 100 years that are just as interesting but fall within a different narrative. Maybe there was a partner at the Oscars who somehow ended up in the arms of Sophia Loren or maybe he got bombed with Jack Nicholson at the Vanity Fair party only to be found later, naked and passed out on the side of Mulholland Drive.

Or maybe you just recall some inter-office exploits that were especially memorable. The point is, PwC L.A., this is a time for reflection. So if you got memories (fond or not so much) about your time there, feel free to share them below.

PwC, Deloitte Enjoying Their Booming Advisory Businesses, Thankyouverymuch

This morning we linked to a Reuters report about the horse race between Deloitte and PwC for the biggest of the Big 4. It reports virtually nothing new that we haven’t discussed here already including Deloitte jumping P. Dubs last year by a whopping $9 million (thanks mostly to keeping their consulting business in house), the hiring sprees, the acquisitions, and oh! the audit business sucks:

With audit revenues leveling off in developed markets, the firms have been making a push in growing countries such as China and India and plowing ahead with investments in consulting, where business is growing after a recessionary slump.[…] The big four are expected to report their fiscal 2011 revenues in coming weeks and any significant growth will likely once again be in the consulting area, said Jonathan Hamilton, managing editor of Accounting News Report. “The audit business, while certainly the staple of all these firms, is a slow-growth business,” Hamilton added.

In other words, the consulting advisory business is hot and audit is not. And what causes some people to fly off the handle is how the firms have sold everyone on the idea that they can still miraculously be the bastion of good business principles ethics. Well, maybe not everyone:

More worries loom from stepped-up regulatory scrutiny. As consulting revenues grow, complaints are surfacing again that firms will be tempted to go easy on audit clients for the sake of winning or keeping a consulting job — a charge the audit firms deny.

Last week, European Union lawmakers approved a report that calls for barring auditors from providing audit and non-audit services to the same client. The report is nonbinding but could shape a draft law in the works.

PwC and Deloitte both said there was no conflict of interest in the consulting services they provide. Much of their consulting is done for companies they do not audit and they follow regulators’ standards and companies’ own restrictions on the kind of consulting they do for audit clients.

The report doesn’t mention many things that have cropped up (some recent, some not so much) including the nearly 500 reprimands Deloitte had in 2009, the rash of insider trading, or PwC’s incestuous Satyam scandal but talking points are also used to address those issues. These firms didn’t get to where they are without figuring out how to play the media game.

One thing is for sure – the firms are going to depend on their consulting/advisory businesses for growth until someone banishes audit firms from offering any other services at all. And God knows what that will take.

In close race for No 1, Deloitte, PwC grow apace [Reuters]

Comp Watch ’11: PwC Partners Making Deloitte Counterparts Look Like Peasants

The FT reports that the average partner in the UK took home £763,000, up 1% from last year. Ian Powell, the Chairman of the UK firm, took home £3.7 million. The average take home at P. Dubs puts Deloitte partners to shame who only managed to scrape together an average of £758,000, down from £873,000. What does the mean for the partners in the States? Probably nothing but it could indicate that Deloitte’s reign as the biggest of the Big 4 could be a one year wonder. [FT]

Comp Watch ’11: Performance Ranking Distribution and More Bonus Details for PwC

Earlier this month, PwC announced that they were throwing new labels on their performance review buckets for FY ’12. Those of you that can walk on water will be called “Top Performers,” better-than-average mortals will be “Outstanding Performer,” the meaty part of the curve is “High Performer,” rubes will land in “Needs Improvement” while the you Sling Blade mofos will be “Unsatisfactory.” While your mothers and I both believe that you’re all worthy of “Top Performer” status, P. Dubs doesn’t share our viewpoint. This morning, Assurance Leader Tim Ryan sent an email to all opiners regarding the distribution of the “Relative Perhe email was sent to us by a tipster and it includes this table:


As you can see, more than half of the new associates will be coddled with a “High Performer” ranking their first year in order to keep them on the hook. In year 2, we see a 20% drop distributed over “Top Performer” and “Outstanding Performer.” The table shows that, over time, if you aren’t consistently falling into the TP or OP categories, you won’t be wearing autumnal hues for long. This seems fair, although we all know that understanding how performance evaluations are determined is like trying to understand why Michelle Bachmann attempted to speak Yiddish.

The email also goes on to describe the three bonuses that will be available to assurance professionals: Credential (that’s your CPA), Contribution, and Annual Performance. Here are the details of each:

Credential Bonus
Associates are eligible to receive a Credential Bonus if they pass their primary credential exam, consistent with prior years.

Contribution Award
To provide a consistent approach to timely recognition of exceptional contributions, associates and senior associates are eligible to receive a semi-annual Contribution Award, in December and the spring. This award will recognize contributions that exceed the expectations at each level (e.g., unique client contributions to the team, extraordinary effort, enhanced quality, significant assistance to another practice). Individual awards will be determined through a formalized and consistent semi-annual process. This award is not contingent upon RPR or credential status.

Annual Performance Bonus
• Senior associates through directors/senior managers will be eligible to participate in the Annual Performance Bonus. The allocation of these bonus awards will be based on staff level and relative performance rating.

• The total Annual Performance Bonus pool is based on achieving our quality and financial performance goals. Successful achievement of our goals will result in award ranges as noted in the chart. These ranges will increase if we exceed our goals (as was the case in FY11 when we increased the overall performance pool by 10%) and decrease if we do not achieve our goals.

• An individual’s bonus within the target award range will depend on the total bonus dollars allocated to her/his market or business unit based on quality and financial performance, as well as the individual’s contributions in relation to peers within their performance category.

• It is expected that all staff at the senior associate level and above rated High Performer or above will participate in the Annual Performance Bonus. Please note, staff who have not worked the full year may receive a prorated bonus award based on the bonus ranges.

And the representative tables:

Just a few thoughts:

1. Don’t fuck around when it comes to the CPA Exam.

2. Even though Contribution Awards “will be determined through a formalized and consistent semi-annual process,” I can’t help but interpret this as “a political and opaque determination that we’ll throw together at the last minute.”

3. You’re probably wondering about “quality and financial performance goals” mentioned with the APB. Here’s the scoop on those:

Quality performance goals
• Inspections: Reduce the number and severity of non-compliant audits identified through inspections
• Training: Complete participation in all required training, including passing applicable assessments
• Planning: Improve the timing of planning and phasing of our audit work, including the appropriate use and leverage of our delivery model.

Financial performance goals
• Revenue: Achieve our annual revenue budget, which includes a 4.9% revenue growth target
• Contribution Margin: Achieve our contribution margin budget
• Cash Collections: Achieve our monthly cash collection plan

Achieving our quality and financial performance goals will require both an individual and team effort. Reaching our quality goals will require staff to continue to focus on our compliance with auditing standards, concentration on continuous improvement and enhanced management of all engagements. Meeting our financial performance goals will be dependent upon each staff charging all their time and billing timely for all client services.

Assurance quality and financial performance results will be shared with you on a quarterly basis.

So while the increased transparency is nice, the quality and financial performance will be one of those things where you’ll be told the numbers; you’ll hear the story behind the numbers; the end. You could audit your ass off, ace every diversity, independence, and ethics training but if business is down or flat (looking probable) you’ll simply have to accept it.

Anyway P. Dubbersteins, try to digest this and discuss your ecstasy over the latest details.

Confirmed: New PwC Senior Associates Can Look Forward to Fireside Chats with Partners and a Pacific Ocean Backdrop

Last month we reported some details about the Milestone Award for PwC’s new class of Senior Associates. At the time we weren’t able to definitively confirm the details but we’re happy to report now that yes, your four day adventure will be happening at Terranea Resort and YES, there will be fireside chats and other social activities to keep you occupied.

“Fitness activities” may not appeal to everyone but with any luck the “signature adventure” won’t involve any physical exertion. ANYWAY, enjoy your getaway, new PwC SAs! Be sure to take lots of pictures and share them with us.

Big 4 Hiring Watch: PwC Going on the Offensive in China

You may remember that the Big 4 have BIG plans to go on a hiring binge here in the States and around the globe over the next few years. Just last year, Deloitte announced that they were adding 250,000 new employees over the next five years (although we were a bit skeptical as to what the final numbers would actually shake out). The latest in job creation PR, comes from PwC who has announced that they will be adding 15,000 new professionals in Hong Kong and China:

Accounting firm PricewaterhouseCoopers plans to hire 15,000 graduates and experienced professionals over the next five years in China and Hong Kong, it said Tuesday, as it capitalizes on growing business opportunities in the region, particularly mainland China.

The Big-Four firm said the new hires will be “across all lines of service,” adding it hopes to recruit more than 2,000 university graduates in the coming months in Hong Kong and China. The company is conducting campus recruitment in Hong Kong and three mainland Chinese cities this month.

Adding to this glowing news was Fitch Rating’s vote of confidence in the Big 4 who “should inspire confidence in terms of corporate governance” in Chinese companies. Right. Because it’s been clockwork so far.

PricewaterhouseCoopers: To Hire 15,000 In HK, Mainland Over Next 5 Years [Dow Jones]