Going Concern

Deloitte

Deloitte Consultant Inadvertently Finds Peace on Vacation

Caleb Newquist
August 16, 2011

Barbara Adachi, a principal in Deloitte Consulting’s human capital practice, started creating a stricter separation between vacation and work when she was in Patagonia on vacation several years ago. Her BlackBerry didn’t get reception there, she said, “and I had no choice but not to check it — it was very freeing.” [NYT]

Rumors

(UPDATE) Layoff Watch ’11: McGladrey Causing Some Head Scratching

Caleb Newquist
August 16, 2011

Hot off the grill from Mickey G’s:

Some people let go at McGladrey. Heard it was like 15 [UPDATE: SEE BELOW] from the corporate marketing department and a few others. Some head scratchers going on. Moved people around including a few changes that have people baffled. People who have no business being promoted promoted.

Earlier in the summer, we heard a rumor about layoffs in the Northern Plains region and at the time our tipster said that the firm “spread[s] the terminations over months instead of doing them all at once,” which has more or less become the norm. ANYWAY, we’re trying to get some more info from tipsters and the firm but in the meantime, drop your knowledge below or get in touch.

UPDATE: A McGladrey spokesperson has informed us that the firm did recently “announce a restructuring of our marketing department to better align with the organizational structure and business objectives outlined by our firms more than a year ago,” adding, “This resulted in the elimination of 11 positions within the marketing organization.”

The head scratching was not specifically addressed. Carry on.

*Dustin Bradford

Any Guesses on How President Obama Feels About Warren Buffett’s Op-Ed?

Caleb Newquist
August 15, 2011

Stop me if you’ve heard this before.

Obama has often cited Buffett’s call for higher tax rates on the rich, and he seized on the Monday op-ed in the Times and the coverage it’s gotten on the web and on cable news to do so again.

“He said we’ve got to stop coddling billionaires like me,” Obama said. “That’s what Warren Buffett said.”

“He pointed out that he pays a lower tax rate than anybody in his office, including the secretary,” the president added. “He figured out that his tax bill, he paid about 17 percent. And the reason is because most of his wealth comes from capital gains.”

Not to be confused with Grover Norquist’s opinion on the matter.

Obama: Warren Buffett is right on the money [Politico]

Salaries

Study Suggests That If You’re Not Happy with Your Salary, You Might Try Being More of a Contrarian Dick

Caleb Newquist
August 15, 2011

[R]esearchers examined “agreeableness” using self-reported survey data and found that men who measured below average on agreeableness earned about 18% more—or $9,772 more annually in their sample—than nicer guys. Ruder women, meanwhile, earned about 5% or $1,828 more than their agreeable counterparts. [WSJ]

Comp Watch ’11: Individual Results Coming in at Deloitte and More Details on Bonuses

Caleb Newquist
August 15, 2011

Following up on our previous post that addressed the high level discussions at the firm, some people started getting calls on Friday and more are having meetings today:

Our first tipster was a recently promoted to Senior Associate in ERS Tech Risk in the Northeast:

Year end rating of 2, 18% [raise].

And the latest from Houston for an 5th year Senior Associate in audit:

Audit 4th year senior going into my 5th year from the Houston Office (Mid-America Region).

As a 1-rated senior my numbers were:

9.9% raise
10.4% AIP bonus

In addition, we received a couple of slides that could be of interest to you on the following two pages.

Next page...

Here are details for “Rewards and Recognition” which spells out the awards in the program and last year’s stats:

Sixty-nine percent of SMs receiving a bonus seems impressive and the Outstanding Performance award could pay out nicely if you’re lucky enough to get one on the high end. The Service Anniversary award, on the other hand, is not impressive at all.

Next page...
If this slide looks familiar, it’s because it is very similar to one we posted back in July that showed Deloitte’s efforts to revamp their comp structure. The previous slide showed the AIP pool for Senior Consultants while this one is for Senior Managers (although :

So share your details as they roll in and feel free to comment on the results, the slides and anything else that tickles your fancy (as it relates to Green Dot Comp).

Grover Norquist Has a Sternly Worded Tweet for Warren Buffett

Caleb Newquist
August 15, 2011

And just an FYI for Grover – The New York Times has a clarification for you (and many others).

Maybe the typo is GN thumbing his nose at O^3 but if the Times is calling out the entire Twitter universe, it’s conceivable that this is a common error that can even befall the most fastidious bagel counters.

[@GroverNorquist]

Salaries

Life after Public Accounting: Is the Grass (aka Money) Really Greener?

Caleb Newquist
August 15, 2011

As summer winds down, those of you that are still living the Big 4, et al. life may be wondering if you’ve squandered the last couple of months getting overserved on patios and roofdecks, spending hours by the pool and vacationing to exotic locales. You might say, “All this time I was having FUN, I could have been looking for my dream job. What was I thinking?”

For those capital market servants whose past season was simply too much to bear, you probably aren’t saying these words and have, at some point, spend a few weeks (or several) trying to find that perfect new job. For those who did finally pull the trigger on their public accounting career, a plea from a reader:

Can you guys do an article on the types of jobs (read: salary increases) former Big 4/public accountants have taken in industry (or somewhere else) after leaving this past busy season? I need a reminder of why I still work in audit.

Typically, auditors are in constant “remind me why I do this” mode but for the purposes of this post, we ask that tax and advisory professionals give the lowdown on their new gigs as well. Possible topics of interest to keep in mind when commenting:

• Did you simply leave for a bigger salary or bonus or were there work-life issues? If so, were your expectations in the marketplace met?

• Did you leave for a private company, nonprofit/government or – GASP – another public accounting firm?

• Is anyone going back to school?

• Anyone just saying fuck it and getting out of the numbers game altogether because they realized that money isn’t all it’s cracked up to be?

• Grabbag.

News

Kiwi Accountants Aren’t That Different From Americans, Rank Work-Life High on the Happiness Scale

Adrienne Gonzalez
August 15, 2011

According to a new survey by leading finance and accounting recruiter Robert Half, 79 percent of New Zealand finance and accounting professionals rank work-life balance as a number one priority in the workplace. Of those, 86 percent of women rank work-life #1, versus 72 percent of men.

Based on a survey of 426 finance, accounting and banking professionals and hiring managers across New Zealand, the Robert Half Financial Employment Report provides invaluable insights into the hiring intentions, staff retention rates and business confidence of organizations for the second half of 2011.

Two thirds of those surveyed (77 percent) valued “working in an enjoyable environment,” while slightly fewer (69 percent) ranked having a manager they can respect and learn from in the top three benefits most valued to them in the workplace.

Other important benefits were working for a stable company (58 percent) and job security (47 percent).

Only 28 percent of respondents cared about working for a socially responsible company (you don’t say!) while a mere 38 percent valued a short commuting distance and just 40 percent valued access to technology as important in the workplace.

Interestingly, 84% of hiring managers said that they find it challenging to find skilled finance, accounting and banking professionals. The functional area in which they are experiencing the most difficulty in finding skilled staff is accounting which has increased by 22% year on year. To help attract and retain staff, hiring managers indicated they are offering or planning to offer perks such as flexible hours/telecommuting (46%), subsidized training (52%) and additional bonus/loyalty leave (41%).

Now, back to that elusive “work-life” balance. Nearly two thirds (62%) of New Zealand professionals stay connected to work or do work-related tasks when they are on holiday. Nearly two thirds (61%) of New Zealand hiring managers expect their employees to be available to some degree while on annual leave or out of office hours. About half are only expected to be available in the case of an emergency (49%). Of the employers that expect their staff to be available when they are out of the office, over three quarters (79%) expect their senior managers to be ‘on call’, while 60% expect this of their middle management team.

Read the rest of The Robert Half Financial Employment Report here if you’re into surveys.

Accounting News Roundup: Coddled Billionaires; An Admission from PwC; What Do Young CPAs Want? | 08.15.11

Caleb Newquist
August 15, 2011

Stop Coddling the Super-Rich [NYT]
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors. These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us spotted owls or some other endangered species. It’s nice to have friends in high places.

PwC admits JP Morgan audit failings [Accountancy Age]
PwC has admitted a formal complaint over its audit of JP Morgan Securities (JPMSL) for the seven years to 31 December 2008. Accountancy and Actuarial Disciplinary Board chief Cameron Scott welcomed the firm’s “responsible” position, saying: “Those that accept mistakes can learn lessons from them.” PwC failed to report that JPMSL’s Futures and Options business did not segregate client money, in contravention of rules set out by the Financial Services Authority.

Google to Acquire Motorola Mobility for $12.5 Billion [Bloomberg]
Motorola shareholders will get $40 a share in cash, the companies said in a statement today. That’s 63 percent more than Motorola Mobility’s closing price on the New York Stock Exchange on Aug. 12. Both boards have approved the deal. Google, whose Android software runs mobile phones made by Motorola Mobility and companies such as Samsung Electronics Co., gains patents it needs to compete against Apple Inc.’s iPhone.

SEC Reviews S&P Math, Possible Leak of Rating [Bloomberg]
The Securities and Exchange Commission is scrutinizing the method Standard & Poor’s used to cut the U.S.’s credit rating and whether the firm properly protected the confidential decision, according to a person with direct knowledge of the matter. SEC inspectors are examining S&P’s policies for conducting such analyses and whether those procedures were followed when the New York-based firm downgraded the U.S.’s credit rating Aug. 5, said the person, who declined to be identified because the inquiry isn’t public.

What do young professionals want? [CPA Success]
Other than money, of course.

Accountant allegedly stole $241K from law firm[NF]
For two-and-a-half years, an accountant was allegedly using a prominent law firm’s bank account she controlled to allegedly pay her personal bills and even write herself double paychecks. Sharon Lynne Samples, 48, was booked July 31 and charged with taking $241,722 from the law offices of Lipscomb, Johnson, Sleister, Dailey and Smith, LLP, according to a Cumming Police incident report.

Bernie Madoff ditched by his wife of 52 years as she seeks reconciliation with son [Daily Mail]
The wife of Bernard Madoff has severed ties with the disgraced Wall Street financier and not seen him for more than six months, it has been revealed. Ruth Madoff, who has been married to the convicted fraudster for 52 years, has shunned her high school sweetheart as she allegedly seeks reconciliation with her son.

Deloitte Appoints Eric Openshaw to Lead U.S. Technology, Media and Telecommunications Practice [Deloitte]
In his new role, Openshaw will drive industry strategy, research, service development and delivery to the organization’s core [Technology, Media and Telecommunications] clients. Openshaw succeeds Phil Asmundson, who continues to lead Deloitte’s U.S. Media & Entertainment and Telecommunications as well as the Global Telecommunications sectors.

News

Question of the Day: Defunct Firm Edition

Caleb Newquist
August 13, 2011

From one of the best accounting Twitter…accounts you can follow:

Military Man Needs Help Transitioning into Public Accounting

Daniel Braddock
August 12, 2011

Ed. note: Have a question for one of our Big 4 refugees or the perma-ink stained wench that has never passed the CPA exam? Email us at advice@goingconcern.com.

Thank you for taking the tide to address my concern. I am a 10 year veteran looking to transition out of the military and into public accounting. I have a BSAcc from a private school and am looking at potentials for a Grad degree. My enlistment expires in the next few years, and I am really lost on the direction I should go with a Master’s degree. I have heard some say that I should do MBA with a finance interest so that I am more marketable. I have also heard others mention that I should specialize. I have some marketable qualitiSCI clearance, 3.9 GPA in undergrad), but I feel like I have lacked in networking due to my military service. I do have several contacts in the space business, specifically with Lockheed Martin, Aerospace and Boeing, but nothing on the accounting and finance sides (my current job is in military space communications). My undergrad school is in Colorado Springs and the networking events do not have any real attraction from accounting firms. Because of my military commitment, getting accounting experience is not possible (short of small things like running finance for my local HOA and VITA tax stuff for my base).

My dream is to work for a large accounting firm (doesn’t have to be Big 4, as I am not nearly as marketable as a 22 year old), but I am finding Internet research and local conversation to not hold enough for me. I am a student member of my local IMA, but management accounting is not the direction I want to go. I prefer audit, and would even consider tax (or if I am desperate I would even consider compliance), but I feel stuck in a hole about how to get my foot in the door. It seems until my military commitment is up I don’t have any place to start. I am in my early 30s, but my military career has taught me how to work long hours, so I am not opposed to Big 4-like treatment. I really want to make this change in my life, and any advice would be greatly appreciated.

Given that you have a few years left in your enlistment, I commend you for planning ahead. Your situation could lend itself to being a difficult one, but with some patience and enduring networking, I don’t see a reason that shouldn’t be able to break into a career within public accounting. For the reason you mentioned above (young blood), you might not be able to start out at a Big 4, but regional/midsized firms should definitely be on your radar.

Couple of things to consider:

Education: You have a great foundation with your BS in accounting and high GPA; however, you will be removed from the classroom by almost 15 years when you’re applying for accounting positions. Consider a Masters in Accounting program, as it will compliment your undergraduate work well, refresh your memory and skillset, and look attractive to HR reps at the public firms. I suggest staying away from the Masters in Finance because it won’t be the strong refresher you need to impress the hiring managers.

Network: Definitely check in with your contacts at Lockheed Martin, Boeing, etc. Sure, they may not be in the finance/accounting departments you’re interested in, but they should have access to the internal job boards. Have your contacts formally introduce you to the HR hiring rep responsible for the accounting positions now, just to initiate contact. Stay in touch in the coming years, seeking advice and providing feedback about your situation. Keep these doors open even though they are not direct links to the public accounting career you seek.

Spread out: Make a list of the geographic areas that you’d considering move to when you return to the States, then do your due diligence on what accounting firms are in the area. Reach out now to their HR/hiring managers (if not listed on company’s website, search LinkedIn) to establish contact now, and ask them straight up what they think of your candidacy.

Feel free to email me your résumé or any follow up questions should you have them. Stay in touch.

Grover Norquist May Have Given the GOP Presidential Candidates a Pep Talk Prior to Last Night’s Debate

Caleb Newquist
August 12, 2011

The most noteworthy and damning moment of the GOP debate in Iowa Thursday was when the moderators asked the candidates to raise their hands if they would walk away from a deal that cut ten dollars from the deficit for every one dollar in tax increases. Every last person on stage said they’d reject that deal. [Atlantic]

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