FT is reporting that Deloitte just axed half of UK executives this week, a surprisingly abrupt move that was announced to staff yesterday. The reason? “The changes were driven partly by a desire to replace older members of the management team with younger partners who would be young enough to run for election as chief executive at the end of North-South Europe CEO Richard Houston’s second term in 2027,” a source told FT.
Let’s get caught up:
Deloitte has overhauled its leadership in the UK, replacing half of the 16-person executive team, including the managing partner, in an unexpected reshuffle.
Eight of the accounting firm’s most senior partners are set to leave the leadership team to make way for six newcomers, according to people briefed on the changes and documents seen by the Financial Times.
Only one of the new appointments is a woman and the reshuffle will reduce female representation at Deloitte’s top table from 37.5 per cent to 28.6 per cent.
The shake-up, which was not communicated to staff until the firm was approached by the FT on Thursday, is set to be billed internally as a “refresh” and presented as business as usual, according to two people at Deloitte.
The FT headline makes it sound a tad more extreme than it is, yes Deloitte axed half of their executive leadership but there were only 16 people to axe and several individuals are staying on at Deloitte, just not in executive leadership positions. FT names Managing Partner Stephen Griggs, Consulting leader Anne-Marie Malley, Risk Advisory head Andy Morris, and Managing Partner of Financial Advisory Richard Bell as a few of the leaders who will be vacating their roles.
FT makes a point to mention the current leadership team is 100% white, two of the new leadership folks fall into the ethnic minority background category. And as mentioned above, although three women are stepping down only one will be part of the new leadership crop.
Deloitte axes half of UK executive team [Financial Times]