Sky News has obtained part of an internal memo KPMG Global Chairman and CEO Bill Thomas sent to firm partners earlier this month in which Mr. Thomas turns his nose up at EY’s plan to split consulting and audit practices. Some choice quotes from the memo:
We are a partnership that has been strong and growing in some countries for over 150 years.
Our culture fuels this growth and stability.
Our responsibility is to leave the firm better than we found it for those who come after us – we are stewards of the business for our mentees and the next generation.
This is the very fabric of who we are.
To monetize the goodwill of our firm that has been created for over a hundred years, at the expense of the next generation, would be entirely contrary to our culture.
Sky News interprets this memo as implying “such a radical restructuring would be akin to an act of corporate vandalism.” So basically EY partners are a bunch of greedy jerks who have no problem extracting large sums of money from the many years of exceptional client service they have provided and the reputation that comes along with it. Suck it, EY. Suck it and then go cry about it into the bags of money you will get from the split when the deal goes through.
Sources told Sky News KPMG did discuss following EY’s lead when the news of the split broke — rumor is Deloitte is already considering it, though Deloitte denies this — but ultimately decided to retain its current structure even if other Big 4 firms jump on the break-up bandwagon. PwC too has said it has no plans to change its multidisciplinary model.
KPMG chief takes swipe at rival EY’s $80bn break-up plan [Sky News]