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Tag: Regions

Deloitte Consolidating Pacific, Central Regions

Deloitte CEO elect Joe Echevarria has informed the partners that a little bit of restructuring will be going down when he takes the big chair next week. The Pacific Southwest and Northern Pacific regions will create a new West region while the Midwest and North Central regions will form a new Central region. The three remaining – Northeast, Mid-America, and Southeast – will remain as is.

Optimizing our regional structure

To: The partners, principals, and directors of Deloitte

When I shared my overall organizational structure with you in February, I noted that I would make the development of the right management model for the regions a priority. Just last week, the Board ratified the decision to move from seven regions to five for FY12 onwards.

We will combine Pacific Southwest with Northern Pacific to create a new West region. By combining Midwest and North Central region we will create a new Central Region. Northeast, Mid-America, and Southeast regions are unchanged.

This decision is the outcome of a comprehensive, strategic review led by Chet Wood, leader of Markets and Offerings. The review was inclusive, with input from many perspectives, including LCSPs, line partners from each FSS, OMPs and RMPs, FSS CEOs and other members of the U.S. Executive. We looked at the regions through the strategic lens of our Lead from the Front framework, to determine how, at this time, we can best align our organization model to the external marketplace.

We carefully considered the different roles regions and offices play for each of our businesses; while many of our non-regulated services are increasingly delivered nationally, regions are critical to the service delivery of our Audit, Tax and DGES practices. Our review also considered factors such as the impact on spans of control, leadership and development opportunities, community-building and sense of partnership, infrastructure costs and speed of implementation. We defined the regional model that will best drive client and business growth, improve our strategic positioning, and strengthen our performance.

The new structure is effective from the start of FY12, although some tactical aspects of implementation may take longer to complete. I have asked Anne Taylor and Gary Tabach to lead the succession process for the West RMP, and Mark Edmunds to lead the process for the Central RMP.

With this improvement comes new opportunity. It’s up to us to realize it and turn our new regional structure to a business advantage. In every region and in every market where we operate, we must continue to widen the gap between us and our competitors, strengthen our position, and ensure that we stay out ahead of change. That is how we will continue to lead from the front.

Joe Echevarria
U.S. Chief Executive Officer Elect
Deloitte LLP

Since we’re not intimately familiar with the hierarchy at Deloitte (e.g. “Regional Partner Leader of M&A Advisory Services” or “Area OMP Chief Leader of Regional Assurance”) these changes will probably mean some jockeying for spots amongst partners effected by the consolidation. And since some regional leaders within the firm (i.e. Talyor, Tabach and Edmunds) will be watching over this process, maybe there will be potential for some interesting developments.

Accounting Salaries Mapped by Region

Back again to decipher more of the data that you so graciously shared with us on our salary thread from December.

After noting that average Big 4 salaries and non-Big 4 salaries were essentially even, we now present the average regional salaries for you enjoyment or dismay:

• Mid-Atlantic– $88,831

• Northeast– $72,024

• Southeast– $56,000

• Midwest– $65,124

• Southwest– $73,185

• West – $64,706

Some analysis and the map, after the jump.


Surprisingly the Mid-Atlantic boasted the highest average salary based on the data collected. This was due primarily to two salaries that were reported from “JDs” working in “Washington National Tax.” The Mid-Atlantic average also included an Associate Director that reported a considerably higher salary than the average. If these three salaries are removed, the average salary is $76,254. which may be more in line with your expectations.

Another surprise that we saw was the higher than expected Southwest average salary. Again in this case, a brave Senior Manager in an advisory practice reported a much higher salary than most submitted. When this is removed the Southwest average comes down to $68,134, again, probably closer to what you would expect.

The Northeast, Southeast, and West all seem about right to us although we might have expected the West salaries to be a bit higher but then again we’re going with what we’ve got.

The map below shows how we grouped the states in the respective regions, with a few additional details on the regions.