Tag: Ernst & Young

Future Ernst & Young Associate Can’t Stop Talking About PwC

If you haven’t already, please read Adrienne’s post on submitting questions to the site. I applaud her for hitting every damn nail on the head, and I want to echo her bottom line: we love hearing from you; the advice columns keep this place buzzing; but please check to see if we answered your question last week. I’d also like to add that the details you can provide (practice lines, office location, level, etc.) make it easier for us to offer more precise feedback. Keep ‘em coming.

In the meantime, consider this post as Example A as to what will happen when a lazy ass individual seeks advice they can find right under their noses. With thistried to find some shred of a question to answer, but instead I found myself screaming at my monitor. If this is the product of Helicopter Parenting, we as a society are screwed. Nevertheless, we’ll get right to it:

Hey GC, how’s it going? I am writing about making a decision between EY’s FSO practice and their TAS practice. Right now there is a lot of squawk about PWC’s FSR and EY’s FSO practices. These are both very hot topics and I believe relevant to readers, as seen after the EY FSO Assurance article [this one].

First off, you’re making a decision between two different options at EY, yet refer to the “hot topic” of PwC’s FSR practice (Financial Instruments, Structured Products and Real Estate). Let’s spell out some definitions for people here who are not familiar:


1. EY FSO – Not a practice but rather a term that stands for Financial Services Office. Per their website (which I Googled like any child can do) EY’s FSO practice includes all three lines of business: assurance, tax, and advisory. It’s a go-to-market philosophy/marketing strategy/organizational hierarchy more than anything else. Go to the website to learn more, if you’re so inclined.

2. EY TAS – Transaction Advisory Services – an advisory practice by name, includes a variety of services (due diligence, restructuring, valuation, etc.). Without splitting hairs here, a TAS associate will work on FSO clients (e.g. valuing insurance claims at AIG). Said associate could also work on a transaction involving a factory in Topeka, Kansas.

3. PwC FSR – Most closely related to EY TAS as it would fall under TAS if it were at EY. But it’s not. It’s at PwC, where you don’t have an offer. Again, not relevant.

Many students have accepted or are contemplating offers from the big 4, and there are rumors circulating that FSR and FSO employees work banker hours and get paid like consultants.

You are clearly new to public accounting, Going Concern, and the world in general. Get paid like consultants? WTF does that even mean? And for the love of God, you’re not working at PwC. Stop talking about it. Note: At this point the contributor goes on with a list of questions; my feedback at the bottom.

I am having trouble making a decision between TAS and FSO. For staff one’s in NYC, total year one compensation with salary and signing bonus is between 60-70 thousand on average. Not bad, but with what kind of hours?

On the other hand, TAS year one salary is about 55k, no bonus. What type of hours can be expected? Being that all new hires in EY FSO start in BAP [link for those playing at home], a 4 year rotational program, does good old uncle Ernie just rotate their staff through busy season after busy season? How much travel can be expected in NYC, aren’t most financial clients located in the city? FSO and FSR new hires are earning on average about 10k more than their audit and TAS counterparts. If the hours are comparable to these service lines, why so much more money? If the hours are much longer in FSO, does the staff ever receive a bonus? There must be a hitch…

Readers should note: This contributor happened to email us from a company email address of a flailing/failing/going-down-in-flames investment bank and – in this writer’s opinion – should be thankful to have ANY job at ANY Big4 firm. Turns out this person has already worked at EY during a previous (and VERY recent) internship and assumedly had ample time/networks/professionals/resources/access to the Internet to answer the above asinine questions.

The hitch is that you don’t have an offer from PwC, so drop the comparison. It’s like comparing my ideal commute to work (jet pack, duh) to the one I currently have (6 train, running with delays). Comparing a PwC FSR offer to an EY TAS offer would at least be a bit more relevant.

I’m going to ignore all questions about busy season hours/travel because you should have asked them while going through the interview process. After all, that’s the point of the interview process. I’m also going to point out that your statement that, “FSO and FSR new hires are earning on average about 10k more than their audit and TAS counterparts” is wrong on many levels. First, FSO includes auditors. Second, new hires within FSO make different salaries (tax hires make XYZ, auditors makes ABC, etc.). Finally, STOP COMPARING EVERYTHING TO PwC’s FSR PRACTICE.

What you do have:

1. An offer in EY FSO: What group? I don’t have a f*cking clue, and you never told us.

2. An offer in EY TAS: Which sub-group? There are six spelled out on the company website.

So, back to one the question in your email that hasn’t been answered at GC a thousand times before:

Hey GC, how’s it going?

Overworked and underpaid. Ring a bell? Take a number.

Bottom line: read through EY’s website to understand their practice lines and acronyms, something you should have done before emailing us. Also, consider taking a job in a “safer” practice…because the last time we had record Black Friday sales was November 2008…and we all know that the house was on fire then…

Jim Turley Stepping Down as Chairman and CEO of Ernst & Young

~ Update includes statement from Ernst & Young

This morning we learned from a couple of sources that the big guy will be calling it a career officially on June 30, 2013 and the firm will announce a new CEO-elect at some point in early 2012.


Here’s JT’s message to the troops:

I have written to all our partners to let them know about my plans to retire from Ernst & Young on 30 June 2013.

Every year, our Global Executive (GE) considers the priorities and initiatives we feel Ernst & Young should focus on in the upcoming year, and these priorities are then approved by our Global Advisory Council (GAC), the top governance body of Ernst & Young.

Periodically, we also take a longer look at our strategy and vision, and involve the GAC in this as well. In July, we informed our partners that we were beginning such a long-term strategic review. The GE and I believe that our new strategy and leadership-succession plans are inextricably linked, and we agreed that June 2013 would be the right time for me to retire.

This is a normal process and the timing has worked out perfectly. I will be 58 years old, which is the normal early retirement age for many of our partners. By then, we will be implementing our new strategy and it’s right that a new leader should steer this implementation.

We are starting a robust process to identify the man or woman who will succeed me, in accordance with our regulations. We intend to identify a new Chairman and CEO elect during the first part of 2012. What I feel very good about is that we’re the type of organization that continually develops large numbers of great leaders, so I see many men and women who could lead Ernst & Young successfully into the future.

This is not a retirement letter or speech to you all, as there is much to do before June 2013. However, I wanted to be very open with you about our plans. Thank you for your continued support as we continue both our strategy and succession-planning process.

James S. Turley
Chairman and CEO

UPDATE: Ernst & Young provided us with the following statement:

In a communication to all Ernst & Young partners worldwide on 10 November 2011, James S. Turley, Chairman and Chief Executive Officer of Ernst & Young confirmed that he will retire as planned, aged 58, on 30 June 2013. The succession process to decide a new Chairman and CEO-elect is now underway and will conclude in early 2012, no later than April.

So after riding out Lehman, handing out a lot of trophies, and inspiring the greatest lyric in the history of Big 4 employee produced videos, (I’m sure there are other accomplishments too) Jimbo will ride off into the Black and Yellow sunset. This seems like an appropriate tribute:

Feel free to leave other well wishes below.

Interns, Here’s the Lowdown on Ernst & Young’s FSO Assurance Practice in NYC

Ed. note: Have a question for the career advice brain trust? Email us at advice@goingconcern.com with your problem(s) but only if you’re comfortable being mocked in an older sibling kind of way.

GC,

I know my question is somewhat specific but I just accepted an Internship offer for E&Y FSO Assurance in NYC and was interested in gaining some insight into the 3 divisions within FSO Assurance. First, I would love to hear your opinion on the pros and cons of each of the three sectors (Asset Management, Banking, & Insurance) including which EY is best known for. I was also wondering if there was a clear leader in each of those sectors in NYC and was wondering which of the Big Four was bestnks so much for your help. I know I am still a year away from having to actually select one of those options but gaining people’s opinions never hurt. Thanks so much.


Congratulations on landing a sweet summer gig with Uncle Ernie. You’ll be working for a great firm in a great city making a great salary while fetching great coffee for your superiors. Cheers!

But really, welcome to New York. You’re smart in thinking ahead to the fact that where you start with your internship will lead to a fulltime offer with the same group. This is because internships are essentially training camp for your first year – make it through the summer successfully and you’re in the club. I did a little digging within my professional circle to uncover some of the EY clients that you’d have the potential of working on, as well as my own two Lincolns.

Insurance – Let’s start with this one because I have a feeling that the group consensus will be unanimous: DO NOT JOIN THIS GROUP. Sure, it is a small, “family-like” practice in the financial services industry, but you’re not coming to work for the warm and fuzzies (if you are, avoid public accounting altogether). You’re coming to make yourself a valuable asset to future employers – one, three, or ten years from now. Can you receive accelerated responsibilities and extensive interaction with your clients? Yeah, but that’s because your co-workers are jumping ship and no one within the firm wants to transfer to the Insurance group. Unless you have an absolute passion for the industry (which you don’t, since you emailed us), I would avoid this group. Stay in this group for five years (you know, to make the dream promo to manager) and you’re setting yourself up for a career working for an insurance (or re-insurance) firm.

Banking and Capital Markets – This group is bigger and more prominent than the Insurance group. It’s taken its hit in recent years because…ummm…the banking industry is in turmoil, but some of the pain has been buoyed by their growing Broker Dealer client base (also falls into this group). Potential clients include Bank of America (*gulp*), UBS Wealth Management (the shining star in the UBS sky), Icahn Securities, JG Wentworth, ING Financial Holdings, and Cantor “run for the hills” Fitzgerald. Sources tell me audit staff are constantly trying to take rotations to the asset management group, so take that for what it’s worth. Career advancement outside of public can take you to either a banking or hedge fund depending on your client exposure, but have you read the papers recently? Banking ain’t the hottest date to the prom to these days.

Asset Management – this is EY’s money train in New York when it comes to audit (and even tax) services. EY and PwC dominate this market in New York, and depending on whom you ask EY has a more rounded client base (blue chip and start ups). Premier clients include Eton Park, Reservoir Capital, Anchorage Capital, and Och Ziff Capital (do some Googling to get an idea about these firms). The exposure to different investment strategies and financial products you will see will be second to none. Don’t forget that you can count the relevant investment banks left standing on two hands, whereas there are thousands of hedge funds and private equity firms in the country (most of which are in the greater NYC area, too). Your easiest and most lucrative path out of audit and into the private sector will be with a background in asset management. Absolutely, positively, 100%.

So there you have it. As always, GC’er please chime in below with your comments.

Your Ernst & Young Entrepreneurs Of The Year Include the Dude From Groupon, Patrick Byrne

We really don’t pay much attention to the E&Y Entrepreneur thingamajigs because, well, it’s boring. Sure, we like entrepreneurs just fine but c’mon. These guys are filthy rich and successful and E&Y gives them trophies? Is this sort of commercial circle jerk really necessary? Regardless of our personal feelings, the awards are a big deal – Jay Leno hosted this year’s event for crissakes – and the Google News feed for E&Y is constantly clogged with stories about people advancing to the next round of voting like some sort of capitalist March Madness.

Anyway, Casa de Turley officially announced this year’s winners over the weekend and Reid Hoffman and Jeff Weiner, founders of Facebook for Suits LinkedIn, are your entrepreneuriest entrepreneurs.


In addition to the dynamic duo there are quite a few guys you’ve never heard of that are doing well for themselves including Roger Linquist and Jose R. Mas. See? Never heard of them, have you?

There are also some winners that you have heard of including Andrew Mason, one of the co-founders of virtual clipfest and increasingly looking insolvent Groupon. As well as Patrick Byrne, the founder of Overstock.com. You know, the guy on the Segway. The guy who Sam Antar can’t help to poke and prod every chance he gets. The guy whose company is being sued by seven California counties thanks to a Walmart sticker. The guy who may have had some weirdo trolling a bunch of bloggers’ Facebook friends. Yes, that Patrick Byrne.

But HEY! not every entrepreneur can be squeaky clean. It’s not like he’s Pete Rose or anything. Unless you count this.

[via E&Y]

So Olympus Didn’t Tell Investors That They Fired KPMG After a Dispute Over an Accounting Matter, So What?

Once in awhile, management and their auditors don’t see eye to eye on things. If semi-well adjusted adults are involved, usually cooler heads prevail and differences are sorted out. On the other hand, if there are egomaniacs or individuals of Irish descent involved, then things can sometimes go badly. Not badly in the physical sense, mind you. Badly in the sense that auditors usually get fired. When that happens it usually raises eyebrows of investors and people start asking all sorts of questions. Luckily, footnote disclosures usually detail the dispute and everyone moves on. That’s precisely what didn’t happen at Olympus:

In May 2009, Tsuyoshi Kikukawa, the then president of the camera-maker and medical equipment firm, announced that the contract for its then auditor, KPMG, had ended and that another global accounting firm, Ernst & Young, would take over. Kikukawa made no mention of any row with KPMG, although Japanese disclosure rules require companies to notify investors of “any matters concerning the opinions” of an outgoing auditor. In a confidential internal document, Kikukawa wrote to executives in the United States and Europe, revealing that there had been a disagreement with KPMG which he did not plan to disclose to the stock market. “The release to be published today says that the reason of this termination is due simply to expiry of accounting auditors’ terms of office,” Kikukawa said in the letter dated May 25, 2009, which was written in English.

You may have recently heard that Olympus is in a bit of situation. They up and fired their new CEO after he was on the job for two weeks because he was asking a few too many questions. You see, Michael Woodford was of the opinion that the $687 million advisory fee the company was paying for to a firm assisting them with a purchase the company in the UK was a tad steep and wouldn’t keep [yapping motion with hands]. Mr. Kikukawa – who has a reputation as an ‘emperor‘ – didn’t care for that, so he and the Board of Directors told Woodford that his services were no longer needed, chalking it up to Woodford being a little too British.

Fast-forward to today’s news – The accounting issue in question – goodwill impairment – was related to the company, Gyrus Group Plc., Olympus purchased back in 2009. And who do you suppose gave Reuters the memo outlining the whole we’re-firing-KPMG-because-they-disagree-with-us-and-we’re-not-telling-anyone-about-it thing?

The confidential letter was given to Reuters by former Olympus CEO Michael Woodford who was ousted after just two weeks in the job on October 14 for what he says was his persistent questioning over the Gyrus advisory fee and other odd-looking acquisitions. Woodford says the letter was addressed to him in his role as head of Olympus Europe at the time and to Mark Gumz, then head of Olympus Corp America.

Apparently this is no big whoop as long as it’s not material and “the numbers add up” says an accounting professor who has ties to Olympus. Oh! In that case, I guess everyone should just move along.

Exclusive: Olympus removed auditor after accounting [Reuters]

Hiring Watch ’11/’12: Ernst & Young Chicago Taking Applications

They’re looking to fill 500 JITs with new Black and Yellows by June of next year.

Chicago Mayor Rahm Emanuel announced the jobs on Tuesday, saying the firm will start hiring immediately and hopes to have all the positions filled by June. Ernst and Young currently employs about 2,000 people in Chicago. The hires will be diverse across experience levels and include support workers.

Just remember that E&Y seems to be upgrading the gene pool, so uglies need not apply.

Ernst & Young to add 500 jobs in Chicago [CT]

The Fall Busy Season Has One Ernst & Young Team in Danger of Going into Diabetic Shock

By way of the Ernst & Young Staff Twitter account, we learn that the young associates are quite fond of the snack drawer:

While I’m not one to condone such unhealthy life choices, I am not lost on the fact that these drawers of death are not uncommon. That said, if all of you out there in E&Y land insist on this type of sustenance, I suggest you get a pair and put down the whole drawer in a prescribed amount of time. The bankers and hedgies have been doing this for years and since many of you think yourselves worthy of their ilk, you should be able to hold your own in the mass consumption of factory produced crap. Anyone up for the challenge should provide a full inventory of the items to be consumed as well as the time limit and the prize to the winner should they emerge victorious. Additionally, I would need to be given a play by play in order to appropriately report the progress and results to the world at large.

We’re waiting. The gauntlet has been thrown.

New Jersey Hasn’t Forgiven Ernst & Young for the Whole Lehman Brothers Thing

I mean, you know how it is, when you lose $192 million. It’s a tough thing to forget. The Journal reports that the Garden State has renewed its lawsuit against E&Y saying “Those review reports were false, as E&Y knew or should have known that Lehman’s quarterly financial statements were not prepared in accordance with [GAAP].” When reached for comment, E&Y spokesman Charlie Perkins’s voice was barely audible on a nearly worn out tape recording, “Lehman’s demise was caused by the global financial crisis that impacted the entire financial sector, not by accounting or financial reporting issues.” Wouldn’t it be nice if Chuck had Nick DeSanto sing the statement? With a rock accompaniment? At least it would liven up this story again. [WSJ]

Another Ernst & Young Employee Is Yearned for in Craigslist Missed Connections

This past summer, a comely E&Y auditor was the subject of a missed connection for “personal and professional” reasons. As disappointing as that is, we’re hopeful that we can make true Internet love happen, as another E&Y employee is the object of someone’s Craigslist Missed Connections post, which makes us wonder if the firm’s recruiting efforts have taken a turn for the superficial. Regardless, this particular encounter is of anonymous affections but is far less creepy.


I had to split up the post since our lady friend opted not to use the “Return” button. The rest of it is on the next page.

Since this was in Rutherford, we’ll go out on a limb and say that this is a Secaucus employee. If you’ve got some idea of who, what and where, help us figure out a way to get these two together. We’re trying to make some love happen, people.

[via Craigslist]

Comp Watch ’11: Big 4 Starting Salaries North of the Border

There’s been quite a bit of chatter out of Canada recently (Happy Thanksgiving, btw) and we now have some of the details for those receiving offers from 3 of the Big 4.

KPMG is offering $40,800 per year. They claim they will pay over time if you work over 40 hours per week.
PwC is offering $40,800 per year with a 0-15% bonus based on performance.
EY is offering $40,500 per year. No mentions of overtime.

This is for the Toronto offices and these figures are all in Canadian Dollars, which comes out to slightly below $40k USD but with the possibility of overtime, obviously the haul could be a lot more. If you’ve heard different numbers (or any Deloitte numbers at all) for these firms, get in touch or discuss below.

Here’s Some of the Loot Big 4 Firms Are Giving to Recruits (UPDATE) – Even More Stuff

Earlier this week, DWB put out an open call for accounting firm recruiting schwag. Pictures, comments, hell we’d even take your extras but none of you have bothered to email me to get my addy. Your lack of sharing ability will be forgiven but not forgotten, dear readers. Luckily, one recruit out of Toronto sent us a few images of the corporate treasures that Ernst & Young, KPMG, and PwC are tossing to those receiving offers. We’ve laid out the images on the following pages for your viewing pleasure and included our tipster’s thoughts on each.


Apparently this is how the E&Y stuff arrived. Someone needs to work on their bo”http://www.goingconcern.com/2011/10/heres-some-of-the-loot-big-4-firms-are-giving-to-recruits/ey-offer-1/” rel=”attachment wp-att-49718″>


EY offer package – “Cheaply made luggage tag, ball point pen, and passport wallet. A bunch of junk.”

Signing package for EY – EY branded luggage and carry on.

KPMG Offer package – “Dr.Seuss’ Oh the places you’ll go (Party Edition, nonetheless). Neoprene logo computer bag.”

Signing package for KPMG – “No one has received it yet.” UPDATE: Apparently there is no signing package from KPMG, however our tipster did say that the computer bag “was the best pre-signing gift of the three firms, so maybe that’s KPMG didn’t give out anything else.” The House of Klynveld is also throwing a second signing party for the newbies, whereas E&Y and PwC are just throwing one.


Offer package for PwC (not pictured) Now on the following pages – “PwC – PwC branded cookies, $50 prepaid AMEX credit card, hand signed PwC card.”

Signing package for PwC – “Choice between two options. (1) Backpack, binder, coffee mug. (2) Gym bag, water bottle, umbrella.”

PwC Signing

This recruit told us that he’ll be accepting with PwC but didn’t elaborate on whether he was choosing the coffee cup or the umbrella but did say that PwC is coming on pretty strong to those receiving offers:

Another student who has offers from both EY and PwC received a call from the CEO of PwC to ask her to join PwC. Now I wish I hadn’t signed yet, so I could have talked to him.

Choose wisely, grasshoppers.

That cookies looks repulsive but our tipster says that “It’s soft and looks amazing.” Right.

Where Is Ernst & Young Finding All This Musical Talent?

Look, I understand that these firms want well-rounded individuals but when more and more people start showing talents that outshine their professional services skills, it makes you wonder if the recruiting folks need a talking to. I bring this up because, unbeknownst to us, FORTUNE puts together a Battle of the Corporate Bands every year and this year’s winner is American PI, a 12-member band, 11 of which are E&Y employees. Granted, they won’t be winning Record of the Year any time soon since they’re simply covering I Heard It Through the Grapevine, Southbound, People Get Ready, and Superstition but they did have three members win “best of” awards.

And with this triumph by American PI, E&Y now has rock, show tunes, and hip-hop covered. It’s probably only a matter of time until they manage to poach the PwC pianist.

[via AT]