DB is reporting that there’s swine flu at Citi and since we’re fairly certain that none of the 1,200 vaccination units were reserved for Klynveldian auditors, you better have your firm-issued surgical masks handy.
That goes for anyone else (read: Big 4 types) working at the Greenwich St. building.
If not, start washing you hands like Howard Hughes.
Earlier: Big 4 Sick Days: Open Thread
Tag: KPMG
Caption Contest Results: KPMG Scary Stories
Not a surprising choice but we thought it would be a closer race. The winner, garnering 45.5% of the vote, after the jump.
KPMG hires replacements for staff who were laid off.
What’s not known is what kind of offers they are getting. It’s an absolute certainly that it includes the standard CYA language: “Due to the volatility of the current economic conditions, your starting salary may be adjusted to market at the time you begin employment.”
Thanks to everyone for voting and we’ll have the results from our salary satisfaction poll later today.
(UPDATE 2) KPMG Atlanta Shake-up Makes Us Wonder
Leadership changes are inevitable in any business but the reasons can be a mystery. Dismal performance? Drugs? A pool boy? All of the above??
Tim Flynn (taking a break from his caddying duties) and John Veihmeyer sent a very upbeat email to the Atlanta office yesterday announcing the new office managing partner there.
Atlanta Office Leadership
A Message from Tim Flynn and John Veihmeyer | October 13, 2009
We are pleased to announce the appointment of [redacted] as managing
partner (OMP) for Atlanta, succeeding [redacted] who has moved into a
client facing role reflecting our commitment to focusing our most
experienced Partners directly on the marketplace.
We want to first thank [redacted] for his many contributions to the Atlanta office and for his leadership roles as lead area managing partner and Southeast area managing partner for Audit. In his new role, [redacted] will be focused on developing new market opportunities, serving some of our largest audit clients and assisting national and local leadership with client care and major proposals.
[Redacted] brings more than 27 years of experience to his new role. He is currently the Global Chairman of Industrial Markets and the National Sector Leader for Energy & Natural Resources, based in Houston. [Redacted] has spent the majority of his career serving energy clients, including Duke Energy, Chevron, Schlumberger, and Spectra Energy.
A well-recognized industry speaker and thought leader, [redacted] was a speaker at the 2006 World Economic Forum meeting in São Paulo. He is also a frequent guest on CNBC’s Squawk Box discussing energy issues and is a regular contributor to energy trade magazines. Since 2003, [redacted] has hosted KPMG’s Annual Global Energy Conference, which is attended by 500-600 energy executives each year.
Please join us in wishing both [redacted] and [redacted] success in their new roles, and in thanking [redacted] for his many contributions as leader of the Atlanta office.
Tim Flynn
Chairman
John Veihmeyer
CEO & Deputy Chairman
Ohhhhh, Squawk Box. That’s a feather in your cap.
Our source told us that: “‘Moved into a client facing role’ means you’ve been demoted in KPMG speak.” We asked around and it’s not clear just what the hell that means but we’ll run with it.
If you’ve got some more information on the shake up at the Radio Station Hotlanta, let us know or discuss in the comments.
UPDATE, 2:45 PM: We’ve received some tips confirming a new Dallas managing partner and have also heard there will be some shifting around of leadership in the New York office but we don’t have many details, so please share.
UPDATE, Thursday 2:49: According to another source, Southeast AMPs for the Tax and Advisory Practices are also being transitioned into client-facing roles.
KPMG’s Report on the Atlantic Yards Project Didn’t Impress Some People
We might be going out on a limb here but it seems like a lot of studies that the large accounting firms put out don’t get much attention. There might be a press release and a mention here and there but otherwise not too much excitement.
That being said, KPMG must be thrilled that the Atlantic Yards Report is taking such exception with th lantic Yards Project:
KPMG’s Atlantic Yards market study, conducted on request of the Empire State Development Corporation (ESDC), backs up the assertion that Atlantic Yards might be completed in the announced ten years, rather than, as then-ESDC CEO Marisa Lago said in April, “decades.”
Well, not only are projections about condo values questionable, as I wrote earlier today, but KPMG’s report has some very shoddy research. Consider that the report (dated August 31) claims that Richard Meier’s On Prospect Park is 75% sold. (Only rental buildings are pre-leased.)
However, the New York Times reported September 27:
While the developers say half of the building’s 99 units have been sold, the real estate Web site StreetEasy.com documents only 25 closings through public records.
KPMG claims that the Oro Condos are also 75% sold. But just this week Crain’s reported that prices at Oro had been slashed 25%.
If you’re not familiar with the Atlantic Yards Project, you’re lucky. Let’s put it this way, it’s a $5 billion project that involves moving the New Jersey Nets to Brooklyn courtesy of Nets owner Bruce Ratner and sixteen new high-rise buildings and will be finished long after we get global accounting convergence.
So yeah, a developer’s paradise. Problem is that all the hype has transformed into a giant argument that pretty much involves everyone. As NoLandGrab points out, “if the Atlantic Yards project is so great, why does everyone pushing the project forward, and every alleged ‘study’ extolling its virtues, have to stray so far from the truth to make it appear viable?”
The obvious benefit we foresee is that the project may get rid of the worst Target on Earth but we may lack vision.
As for the Radio Station, they probably had the best of intentions when preparing their report but now, for better or worse, KPMG, who has yet to respond to our request for comment, is near the center of the rage. Enjoy.
What was KPMG smoking? Report claims 75% of Meier’s On Prospect Park has been sold; other statistics are way off [Atlantic Yards Project via NoLandGrab]
KPMG Atlantic Yards Market Study.pdf
UPDATE – July 13, 2010: Hey gang – a bit of belated correction/clarification here. Norman Oder, who writes the Atlantic Yards Report got in touch with us about our little quip about Target. He wrote to us “I know you’re trying to be entertaining, but that’s not close to true. The Target is across the road from the project site.”
So I guess our wishing out loud for the big Brooklyn bullseye to be destroyed won’t be happening (it’s not part of the plans at least) but we stand by our assertion that the Target is a hellhole and needs to be destroyed.
If KPMG Had Just Made Her Feel Like a Prostitute, They Would Have Gotten Off Way Cheaper
KPMG has been ordered to pay £45,000 to a former employee who failed The Institute of Chartered Accountants in England and Wales’s (ICAEW) computerized qualifying exams due to her dyslexia.
According to Accountancy Age, “[Dhrupa] Bid failed her first exam and was given permission by the firm to defer her retake so that a dyslexia assessment could be obtained from the ICAEW. She was warned by the firm if she failed she would have to be dismissed.”
More, after the jump
Previously, Ms. Bid had taken paper exams scoring in the 80s before taking the computerized exam and scoring 40% lower. She only found out that she had dyslexia until after she had failed the exam the second time. Her condition warranted her to an extension of time and to be given a paper exam.
It seems a little odd that she would take the exam again and fail, before finding out she had dyslexia since she was allowed to defer her re-take of the exam to determine if she had dyslexia.
Maybe the ICAEW was dragging on the assessment or KPMG didn’t have the patience to wait for the results but since Ms. Bid failed the second time she has had to return to Kenya since she no longer held a work visa.
KPMG issued the following statement:
“KPMG believes it acted properly and fairly at all times and did what was required of a responsible employer in supporting Ms Bid once the probability of her having dyslexia was made known to us.”
What’s not clear is whether the Radio Station would have preferred paying out less in damages and ended up being perceived as a pimp. Pretty tough call but it looks as though shelling out the additional £45,000 was worth it to the Firm.
The bright side for Ms. Bid is that she wasn’t made to feel like a prostie and she got paid way better than one too. Silver lining people. Silver lining.
KPMG forced to pay £45,000 in discrimination case [Accountancy Age]
Is AMC Auditor Shopping?
Maybe! But the movie theater company did dump PwC on October 1st according to a filing with the SEC after just two years.
According to the filing, P. Dubs had only been engaged as AMC’s auditors for the last two fiscal years (4/3/08 and 4/2/09) and the audit committee decided that KPMG will now get the pleasure of opining, also effective on October 1st (congrats, we guess?).
As is typical in these auditor swaps, AMC’s filing states that they had no disgreements with PwC “on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.”
We’d like to think this came down to a PwC partner making some sort of stand against the asinine concession prices that are borderline unethical but that’s just our personal vision. If you’ve got your own ideas about the reasons for the dismissal, discuss them in the comments.
AMC Entertainment hires KPMG to replace PricewaterhouseCoopers [Kansas City Business Journal]
KPMG Comp Discussions: Mid-Atlantic Says ‘No topic is off-limits’ and Possible Cuts in the Midwest
We’ve heard of at least one instance in the Detroit office where a manager’s pay was cut approximately 4%. At this time, it’s not clear if it will affect the entire Midwest region or just the Detriot office, so let us know the details for your office, regardless of location.
Meanwhile in the Mid-Atlantic, we received the text of an email that states that “no topic is off limits” in the comp discussion, which will hopefully invite some colorful discussion. If any other regions have a similar communiqué, kindly pass it along. We love reading emails. The text of the email that lists things that you should be prepared to discuss, appears after the jump.
During the week of October 4, our Midatlantic area Audit partners will be conducting Project Future discussions to address your individual compensation as well as personal and professional growth opportunities at KPMG. Project Future is an initiative that allows you to discuss various topics with firm leadership.
While the current state of the economy is on everyone’s mind, I encourage you to take this opportunity to share your experiences, interests, and short- and long-term career goals. You should also use this time to discuss the firm’s plan for growth, including new client opportunities and recent wins.
Remember, no topic is off-limits during the Project Future meetings, so bring your list of items to discuss. Here are a few items you should be prepared to talk about:
• Compensation
• Future engagement assignments, including your utilization, chargeability, and overtime hours
• Industry and career interests
• Your experience working for KPMG
• Personal and professional growth
• Tips on how to build a great career at KPMG
• Sabbatical program
• Promotion outlook
During the week of October 4, your assigned Project Future partner will contact you to schedule a convenient time to meet. If you don’t hear from your partner, please contact your local HR manager.
This is the fourth year we have conducted Project Future discussions, and I hope you continue to find value in meeting with your partners.
Thank you.
If you’re more comfortable discussing the points above here, please do so in the comments. And if you’ve got other suggestions of what you’d like to discuss, or care to expand on “Project Future” mention them as well and of course, share your euphoria or lack thereof with us after your sit-down.
Former KPMG Partner Sues Firm for $30 Million
This whole tax shelter problem for KPMG is back from the dead, as a former partner who was indicted and later exonerated of the charges has sued the firm for “attorney fees, lost wages, and future earnings,” according to the L.A. Times.
David Greenberg’s lawsuit alleges that “[he] was singled out as a rogue employee to cover up the company’s own widespread practice of tax evasion and conspiracy. The suit says KPMG publicly accused Greenberg of committing crimes and allegedly tried to divert attention from its illegal practices.”
So, yeah, that kinda sounds ugly. Nineteen people were originally indicted in 2005 for the tax shelter schemes and the lawsuit alleges that Greenberg is the only person whose legal fees have not been paid by KPMG. He also claims that he’s still being named in lawsuits and has amassed $10 million in legal fees. Dude’s probably a little pissed.
Continued, after the jump
Natch, KPMG isn’t amused by the whole accusation of ‘widespread practice of tax evasion and conspiracy’ and released the following statement:
“The claims throughout this lawsuit are baseless,” KPMG spokesman Dan Ginsburg said. “We will use all appropriate measures to defend ourselves…This lawsuit attempts to revive issues that are long dead,” Ginsburg said. “Mr. Greenberg released KPMG from any obligation to pay his legal expenses in a 2003 agreement which has been upheld by the court.”
Hell, if that’s true, then this thing should get thrown out, no prob, right? WTFK really but it’ll be fun following how nasty this gets.
Oh and just for fun, Greenberg is suing for an additional $20 million for “…defamation and emotional distress from spending five months in jail.” Not sure where Greenberg did his time but if the digs qualify as PMITA prison, then $4 million a month is probably fair.
We realize that it’s still early in LA for a Monday but if you’ve got insider information on this story, shoot it our way. You know, the ugly stuff.
Former KPMG partner sues accounting firm for $30 million [Los Angeles Times]
(UPDATE) Rumor Mill: KPMG Compensation Discussions Starting
Your patience is unmatched, Klynveldians.
Rumor is that the Advisory practice in the Southeast region is having a conference call today (which is slightly more awkward than a voicemail) with all the non-exceptional managers and staff to communicate their banishment to compensation-Siberia. Our source indicated that this has never been done before, in case it sounds strange.
If you’ve got more details on this call or if you’re in another region and have details drop us a line. In the meantime, you’ll probably have to live with the official silence until at least Monday.
UPDATE, 4:02 pm: All right you guys. Sounds like it was a pretty awesome call. If you’re not above under an “SP5” you might actually get a pay cut and there’s no chance in HELL that you’re getting a raise. Also, apparently the HR rep phoned in from home and his dog was barking in the background which just crosses the line of appropriateness in all kinds of awesome ways. We’re picturing a pomeranian (can’t leave them alone, they eat the bloody furniture) but if we’ve got it wrong, please let us know.
Accountants Raiding Accountants Probably Makes for a Hilariously Awkward Scene
Jesus, that was fast. After Wednesday’s snoozer raids at the E&Y office in Hong Kong, Icelandic police have raided the offices of KPMG and PwC in Reykjavik, Iceland, according to the Daily Telegraph.
More, after the jump
Police have raided the offices of KPMG and PricewaterhouseCoopers (PwC) in Reykjavik, seizing documents and computer data as part of an investigation into alleged criminal activity at three collapsed Icelandic banks…The office of Olafur Thor Hauksson, the Icelandic investigator charged with examining the collapse of
the three banks a year ago, confirmed that 22 policemen and six foreign accountants took part in the searches yesterday.
Six accountants? Whoa, this thing was way more serious. No coffee and bagel strategy here as it would have totally distracted the investigating accountants from their jobs.
Likewise, we doubt anyone was strapped for this raid. Especially the number crunchers. We can definitely picture them begging the police though, “C’mon, they don’t even have to be loaded. We’ll just leave them in the holsters. WE SWEAR.”
The most excitement that we can envision was some bean counter trash talk that may have escalated into open-hand slaps and flailing arms and legs. The real police, after enjoying this hilarious scene for a few moments, would have had no choice but to break up the nerd fight as it began encroaching on the investigation and other people’s personal space.
KPMG and PwC Reykjavik offices are raided by Icelandic police [The Daily Telegraph]
KPMG Layoffs Part II Follow-up
It’s been fairly quiet since this past Tuesday’s layoffs but it sounds like lots of cuts occurred in national support services in Montvale, NJ. We also received a tip that the Richmond office let go a few professionals from their Internal Audit Risk & Compliance team which adds to the advisory cuts that were reported last week.
We also got more details on the Chicago office’s layoffs of tax professionals:
In addition to the 5 from ICS there were at least these:
• 4 in Fed Tax (Consumer Markets) – 1 manager, 2 seniors, 1 associate
• 1 in SALT – manager
• 1 in EVS – senior manager
• 3 in Fed Tax (Real Estate) – 1 managing director, 2 seniors
There were lots of rumors of it continuing this week, so continue to keep us updated. The bright side is today is New Year’s Day in the land of Klynveld.
KPMG…Raises…Still…No…Word…
So it’s October 1st, and several Klynveldians have got ants in their pants. Here’s one source that echoes many:
I work in the SE and they haven’t mentioned raises at all and I was promoted to senior in july. We usually have some sort of idea or at least have our meeting scheduled. However nothing…
We touched on this two weeks ago and other than some sit-downs in the Mid-Atlantic, it’s all been speculation about what the Radio Station will actually be doing re: merit increases.
The debate was polarizing, with some claiming the incommunicado was typical and others saying something should have been communicated by now.
Promotees, non-promotees, whatever your sitch, discuss your anxiety (and continue speculating) in the comments. Email us if your region gets word, for better, for worse.
UPDATE, 12:36 pm: Email has been sent to those in the Mid-Atlantic that discussions with ‘designated partners’ will be had next week.