According to Institutional Shareholder Services, TFly is only member of JPMorgan's risk policy committee who is meeting expectations: An influential shareholder advisory firm has recommended that investors withhold their support for three JPMorgan Chase directors, citing “material failures of stewardship and risk oversight” in the wake of a big trading loss last year. The firm, Institutional Shareholder Services, […]
Almost. The ex-KPMG Chairman has been nominated to join JP Morgan's board of directors. He still has to be elected by shareholders (a formality more or less) which will occur on May 15th. But Jamie Dimon seems pretty excited about the possibility, saying that JPM is "honored" that TFly has agreed to be a nominee. […]
Philip Alfred Mickelson was born 40 years ago on this blessed day (shares with 2Pac!) and we’re guessing it will be a busy one for the reigning owner of the World’s Ugliest sports jacket.
We imagine he kicked things off with 40 Krispy Kremes donuts for breakfast, followed by a little prep round for this week’s U.S. Open, Five Guys for lunch, maybe another practice round and wrap it up a nice dinner with the fam.
All the while, screening calls from Tim Flynn who desperately wants to wish Phil a happy 40th, good luck on his quest for the KPMG Grand Slam and to congratulate him for the umpteenth time on his third Masters Tournament victory.
It really is a big week for Phil/KPMG, as the U.S. Open has dogged PM for his entire career and a good performance this week (i.e. anything less than a win is unacceptable) could vault him over Tiger Woods who has other problems.
So send some Happy Birthday/good luck/Father’s Day/thanks-for-wearing-our-hat-for-$3-mil-a-year wishes to Phil below or just let him know what you think his chances are.
We just assumed that we had heard the last of the cubicle-side chats with KPMG’s leadership but lo and behold, this morning we find yet another convo with KPMG’s three amigos – T Fly, JVeih, Keizer Soze – sitting in the mailbag.
And yes, Phil comes up.
Okay, some thoughts –
In response to Inquisitor #1, Johnnie V. says “our goal is to make sure to not sell services into a company” but then qualifies by saying, “[Making] sure we’re bring the full suite of..services to help them deal with those issues and those problems.” In other words, there is a very fine line between hustling clients for more business and actually serving them to suit their needs.
Re: “Mid-market” – This can be summed up by saying: KPMG is having the most success winning smaller clients from the next tier firms.
And finally to the most important question – Inquisitor #3 thinks Phil is great and all but for the love of everything that is good and holy, are there any other plans to get the name out there? This Five Guys obsession has him worried.
Since Tim and Phil are BFFs, he’ll take this one…except he doesn’t say anything that really means anything. JVeih jumps in (no doubt give him the “WTF are you talking about?” look) to say that KPMG’s Mean Girls strategy is working and the firm is getting far more attention from CFOs than it was just one year ago. The rest of the Big 4 have plateaued and Phil has been instrumental in the glad-handing and back-slapping efforts.
This time around, thd by COO Henry Keizer) discuss their roles in the firm and the election process because, presumably, it might make for a good ice breaker at your upcoming Memorial Day BBQ.
Inquisitor 1: Congratulations on your new roles – Chairman and Deputy Chairman. What can you tell us about the process that you go through in having that occur? And what’s the differentiation between your two roles?
Flynn: The board has a responsibility to have a succession planning process in place to elect the Chairman and Deputy Chairman. That is then put to an up or down vote of the partners for ratification. Chairman and Deputy Chairman are – today – a five-year term jointly and then a three-year second term, should they so choose. The board elects them to a second term.
John and I were elected in June of 2005, for a five-year term. I was elected as Global Chairman on October 1, 2007. I came to the conclusion through the fall that I really couldn’t do both roles full time.
In recognizing that in a complex, changing world today, we really need a full-time U.S. Chairman and Deputy Chairman to take care of what has to get done here in the world that we’re in—and as well, we’ll talk more about it, but we have to evolve the global firm, a $20 billion organization – shouldn’t there be a full-time executive team that wakes up every day on how to carry out the responsibilities of a $20 billion organization?
Veihmeyer: In terms of specific responsibilities – as Chairman, I’m the CEO. Henry chairs the Management Committee and a lot of what we talked about in terms of executing effectively and making sure that we are – from an operational standpoint – a very high-performance organization, Henry will lead through his role as Chief Operating Officer.
In other words – the process at KPMG isn’t exactly the electoral college. It’s basically a fight until the (near) death and the winner gets the thumbs up/thumbs down, Gladiator style, from the Board. Then they shake hands, slap each other on the ass, etc. and get back to work.
For this past cycle it does sound like T Fly was a little burned out from the globe trotting and keeping the peace Stateside so it was natural for JVeih to step up to the big chair for the U.S. after the terms expired. A $20 billion company is nothing to sneeze at so we thought that maybe we should start taking this “global firm” thing seriously (even though we’re all independent of each other and are legally not one firm) and let somebody tackle it full time.
Inquisitor 2: How will the succession process work within the next three months?
Veihmeyer: In terms of the specific things that have to take place, obviously we have some things around the leadership team that we have to get in place. Henry comes out of his role leading our Audit practice. So we will get all that in place as we lead up to early June, what team will be in place as we go forward post-June 10th, leading the firm. Henry…
Keizer: The transition that Tim and John described sets us up in a very good position to make sure as we move through fiscal 2010, we won’t be focused internally. It will allow us not only to continue to build on the foundation that we’ve built over the past several years, but more importantly, to really stay focused on making sure when we look back on 2010, it will be a year where everyone could say we’re on our way to recovery. The things that we all want, in terms of a more vibrant business, more rewards for our people, are all beginning to come back into the picture, and that that’s what we’re all committed to, I’m sure.
We’re taking applications for Hank’s position. You have to be able to stick to talking points, send out a mass amount of emails (via admin assistant natch) and smile a lot. Oh, and you can’t gush when Phil shows up for photo ops; you’ve got to keep it cool.
Forget the fact that what’s-her-name can’t hit the links, let alone join the Old Man’s Club that is Augusta; this weekend is all about Tiger Woods and, if you’re from the KPMG Kamp, Phil Mickelson. Not a resident of the KPMG Kamp is Chris Rock:
Don’t get me wrong – I love Phil, and so should you. What’s not to love? Big goofy smile, overweight just enough to make the average golfer feels connected to the lovable pork chop of an athlete. And he’s left handed, so you just know the world is out to get Golf’s Favorite Underdog. Golf and chainsaws, a lefty’s biggest fears.
But I digress. Back to Uncle Peat.
Phil currently sits tied atop the leader board at five under par, tied with three others. But who cares about those knicker-wearing chumps?! UNCLE PEAT IS IN FIRST PLACE!!!
Us regular peons can only imagine the jubilation amongst KPMG leadership in attendance this weekend. T-Fly and The New Guy back slapping each other and clients-to-be. But are they nervous? After all, Phil is much like KPMG – always the hopeful underdog, their supporters praying that their fearless leaders don’t slice it and end up in the rough (or court). There are rough patches in every round, but coming out ahead of the game is key, is it not?
Hopefully the Philster can keep himself and his catchy hat on top of the leader board going into the weekend. For the tax crew out there, you can follow your favorite Tiger Slayer’s weekend rounds live on Masters.com. Hopefully streaming video isn’t blocked by the Kamp Kounselors.
This month students around the world have been celebrating spring break. That usually means one thing – young people get cop-slugging drunk and maybe, if you’re really unlucky ruin your chances of employment.
The Daily Mail reports that 5,000 British students descended upon the seaside Spanish town of Salou, getting over-served, running around in their birthday suits and pissing off the townies. The gem above is one of several photos that accompanies the article.
The tipster that sent us the link wondered if Phil Mickelson would approve of this. Other than the obvious, “OH HELL NO!” We think Mick’s response would be something to the effect of, “Those little bastards are lucky they aren’t wearing my hat otherwise I’d rearrange their face with my LW.” But forget Lefty for two; now that Tim Flynn is focusing his efforts on being the international chair of KPMG this is the type of crap that causes T Fly to grit his teeth into dust.
“Saloufest” is described as a “sporting event” so maybe these shirts/jerseys are KPMG giveaways and no one is in danger of poorly representing the House of Klynveld. That being said, this probably isn’t what TF and Co. had in mind when they slapped the four squares on a shirt. Btw, if you’ve happen to have some extras, get in touch.
UPDATE/Correction, Wednesday 3.24.10 – Previously, headline stated that John Veihmeyer was succeeding Tim Flynn as Chairman and CEO. John V. has actually been the U.S. CEO since 2008. Sorry JV, for not giving you credit there.
The suspense is over. Johnnie V. has been serving as th the U.S. Firm since 2005 and he has the full confidence of TF, “There is no finer individual to lead the U.S. firm and build upon the progress that has been made over the last five years…John is equally passionate that KPMG continues to be a great place for our people to build their careers, in a culture that embraces diversity.”
JV will be succeeded by Henry Keizer in the Deputy Chairman role. Hank will also be the U.S. firm’s Chief Operating Officer. Timmay is also excited for Keizer Soze’s promotion, “His leadership and professionalism will be vital to ensuring the firm meets the challenges and capitalizes on the tremendous opportunities ahead…he has championed the use of technology and off shoring to enhance our operational effectiveness and efficiency in an increasingly competitive marketplace.”
Tim will be focusing on his roles as the Chairman and Senior Partner of Klynveld International, dashing our wishes for him to be the next Secretary of the Treasury. He was “strongly endorsed” by the Global Board to get down to business in this “unprecedented global economic and regulatory environment.” You can probably plan on more Davos interviews next year, chatting up royalty, caddying, etc.
I am extremely pleased to announce that the partners have ratified the election of John Veihmeyer as Chairman and CEO, and Henry Keizer as Deputy Chairman and COO, of the U.S. firm. John and Henry will assume their new responsibilities on June 10, 2010, when my term ends as U.S. Chairman. John and Henry bring strategic insight, deep leadership skills and extensive experience in serving clients to their new roles.
While it was a difficult decision for me not to continue in my role as Chairman of the U.S. firm, it has become increasingly clear to me that my additional role of Chairman and Senior Partner of KPMG International requires a full-time commitment. Last week, the Global Board strongly endorsed that I serve full time as Global Chairman in this unprecedented global economic and regulatory environment and period of tremendous opportunity for our member firms and people.
Having the privilege to work side by side with John during our five-year term as Chairman and Deputy Chairman, I have seen first-hand his professionalism, leadership and commitment to KPMG, its people and clients. There is no finer individual to lead the U.S. firm and build upon the progress that has been made over the last five years.
In addition, Henry will bring a tremendous amount of operating experience and energy to the Deputy Chairman and COO role. His leadership and professionalism will be vital to ensuring the firm meets the challenges and capitalizes on the tremendous opportunities ahead.
John has served as Deputy Chairman of KPMG since 2005, and he brings a unique combination of skills and experience, across all aspects of our strategic priorities, to the role of chairman. John is equally passionate that KPMG continues to be a great place for our people to build their careers, in a culture that embraces diversity.
Henry comes to his new role after serving as U.S. Vice Chair, Audit since 2005 and Global Head of Audit since 2006. In these roles, he has championed the use of technology and off shoring to enhance our operational effectiveness and efficiency in an increasingly competitive marketplace.
John and Henry’s professional depth, integrity and commitment to our clients, partners and the people of KPMG will serve the U.S. firm well as we move forward. Please join me in congratulating John and Henry and welcoming them to their new roles.
In closing, there was never a day that I was not grateful and humbled by the opportunity to lead and work with the truly exceptional people of KPMG. I have been awed by your talent, proud of your accomplishments and appreciative of your dedication. It truly has been an honor to serve as Chairman of the U.S. firm for the last five years.
Thank you for all that you do every day to support our firm and deliver on our promise of professionalism to each other, our clients and the capital markets we serve.
All the best,
Back in November 2008, KPMG suspended the highest level of its Encore bonus award, the Standing Ovation to “manage costs.” Since there is no shortage of exceptionalness at Radio City, the $500 awards were adding up so word came down that it was ixnay the tandingsay vationsoay.
The firm did keep its “Bravo” award that was good for $200 and replaced the five-hundo bonus with a $25 award and “thanks e-cards” that were way better than anything from Hallmark simply because Tim Flynn probably included a personalized message.
And you, simply, cannot put a dollar figure on that.
The most devastating part of the Standing O kibosh was that the trophies — which could easily qualify as a “blunt object” at a crime scene — were no longer handed out. These, understandably, are most coveted of all KPMG tchotchkes.
Well now, according to accountants familiar with the matter, the firm has reinstated the Standing Ovation for reasons that we can only speculate. It will be reserved for those Klynveldians that “go above and beyond” the call of their duties. Again, we can only speculate as to what this actually entails. Considering the fact that the hours you’ve been putting in for the last month or so have been expected, it may just mean that you have to try a little bit harder.
The reintroduction is being received tepidly, as one source told us:
Kinda meaningless to me. They don’t hand them out. Except for managers that want to get laid by younger staff.
Seconded by another source:
Just because they bring them back, doesn’t mean any partners plan on approving them. – “Oh, I nominated you for a standing ovation, but it didn’t get approved! It’s the thought that counts though, amirite?”
Another source saw it as too little, too late:
“Do they really think $500 is going to stop a mass exodus of [people] from leaving? Perhaps they should have thought about that when they didn’t give raises.”
Despite the vague qualifications for the award, it’s good to see TPTB reinstating the bonus for the sake of morale/bribery/empty hope. Now go get yourself one!
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It’s hard enough to be a Big 4 firm these days that you don’t need this. New York-based United Against Nuclear Iran (UANI) is a little upset with any and all companies that are doing business in Iran and just because you claim that you are a protector of the capital markets, that doesn’t earn you a free pass.
The Financial Times reports that UANI’s latest target is none other than the House of Klynveld and the lobby group sent a letter to Tim Flynn stating their displeasure with KPMG’s ties to their independent member firm in Iran, Bayat Rayan.
Flynn, who is stepping down as the Chairman of KPMG this summer, probably isn’t too psyched to have the firm lumped into the cross-hairs of UANI, who has relentlessly pressured companies to stop doing business in Iran.
The FT reported that the UANI set its sights on KPMG “after [a] week-long campaign against Ingersoll Rand ended with the Dublin-based diversified industrial company announcing on March 8 it was instructing its subsidiaries not to sell products ultimately destined for Iran.”
We contacted KPMG for comment but have not yet heard back regarding a response from the firm.
According to the letter, UANI will take “any and all action we deem necessary to hold KPMG accountable for its inappropriate business relationships with Iran,” which sounds pretty serious. Although we’re not sure what ‘any and all action’ will entail but for T Fly’s sake, we suggest he gets this resolved sooner rather than later. If he doesn’t, he can expect calls from Bill O’Reilly and his mug next to Ahmadinejad’s on the Factor.
Brian Moynihan is shopping around for a CFO and he needs a good one ASAP. The Post reports that Moynihan will go with someone from outside BofA so that means you’ve got a shot! Now before you get ahead of yourself and think you’re the BSD to turn this ship around, consider some of your responsibilities.
You’ve got to be the numbers jockey for the biggest bank in the known universe that is constantly being given the stink-eye by Tim Geithner, Barack Obama, Ken Feinberg, et al., plus an angry American populous that will not hesitate to call you names and picket your house. Oh, and you may or may not have to move to Charlotte. Maybe that’s not a sticking point for some of you but if you don’t like NASCAR then we’d suggest passing on this one.
See? Trying to come up with a good and willing candidate will not be an easy task. After all, getting someone to takeKen Lewis’ chair wasn’t exactly a piece of cake and CFO is actually a real job.
Naturally, soon-to-be former KPMG Chairman Tim Flynn comes to mind but Moynihan may want to go with some with a little less sweater vesty and he doesn’t really have the mane to match. Former Lehman CFO Erin Callan is busy hanging out with firefighters and Andy Fastow is still unavailable. Better put a call in to Robert Half.
Since the Times ran a story on this cultural trend in fall of 2008, and the following video was posted in December ’09, you might say that accountants are again, late to the party but whatevs. And of course it’s an IFRS spin.
While somewhat humorous, it’s still based on a Canadian company and there’s no mention of Sir David Tweedie, which we think is an unforgivable oversight. That being said, it is encouraging that there is at least one Downfall remake out there that encompasses accounting. Personally, we’d like to see some of the following topics addressed using the clip:
• Patrick Byrne getting the news that Overstock has to restate their financial statements, again.
• Tim Flynn learning that the KPMG Salt Lake City office actually accepted the Overstock audit engagement.
• Stephen Chipman receiving word that Grant Thornton was fired from the Koss engagement because VP Sue Sachdeva made off with $31 million and it was discovered by American Express.
We’re sure there are other possibilities. We encourage you to get to work on this ASAP.
Tim Geithner better be paying attention. This could be your successor.
As you may know, my five-year term as U.S. Chairman ends in June of this year. Late last week, I informed the Board and subsequently announced to the partners, that I have decided not to serve an additional three-year term as U.S. Chairman after my initial term ends this June, as permitted by the firm’s governance.
This decision was made after much thought and personal reflection. KPMG’s partnership agreement has a well-defined and time-tested set of protocols in place whereby the Board of Directors is expressly responsible for managing the succession process for Chairman. Over the next 60 days, the Board will execute that process, the planning for which began late last summer.
Our firm has an outstanding group of partners and an effective, seasoned leadership team that is focused on our partners and employees, our clients, and the marketplace.
You have my personal commitment that I and the entire leadership team will remain focused on these key priorities throughout the remainder of my Chairmanship.
Thanks for all you do every day for KPMG.
The World Economic Forum kicks off tomorrow and as expected, the Big 4 bigwigs will be there in full force.
Having been through their share of busy seasons, the fearless four of Jim squared, Dennis, and Tim are no doubt glad to be on this getaway.
Their hearts and minds never stray too far from all of you serving the capital markets back at home but it is a great opportunity for them to explore the land of secretive banking, blondes and Toblerones. Plus, there are some meetings and whatnot where they spread their wisdom amongst the other grand poobahs of the world.
Despite the presence of the Fab Four, Big Four Blog points out that the firms’ websites don’t hardly make a mention of their participation at the rager in Davos:
[We] could find hardly a mention of this on the firm’s websites, contrary to prior years when a press release would proudly proclaim their participation. Are the Big Four firms keeping a low profile this year? We wonder why?
Last, but definitely not least, on the F100BCTWR is the House of Klynveld. We figure that if you judged the HoK based solely on the fact that it sponsors a golfer who can manage to keeps his pants on for five minutes, they dominate this list. Unfortch, Fortune takes additional variables into account out of respect for the process.
KPMG – Previously ranked #56. It’s great because, “[The] firm introduced a sabbatical program allowing employees to take leaves of four to 12 weeks at 20% of pay. Some 450 employees immediately signed up for it. Employees average 25 paid days off.” Thoughts?
Other interesting stats per the snapshot:
• New Jobs (1 year): -1,581
• % Job Growth (1 year): -7%
• % Voluntary Turnover: 12%
• No. of Job Openings at 1/13/2010: 2,700
• Most common salaried job: Senior Associate with average salary of $78,100
So the numbers aren’t so hot compared to others. Not to worry though! TF is out there rallying the troops even jumping across the Hudson every now and again just to check on everybody. What more could you ask for?
Our understanding is that T Fly is rallying the New York troops this morning so if he says anything worth noting (e.g. “I’m leaving the firm to become the next Treasury Secretary“), be sure to get in touch with us or discuss below.
We’re not sure if he’ll be giving pep talks to other offices so if you’re in not in New York and you’ve got TF on the docket, keep us updated.
Welcome back, servants of the capital markets. We’ll dispense with anything substantive this morning in order to help you combat the depression. We’ll start off by presenting you with the following:
As you can see, this is the POTUS
on vacation working in Hawaii with the entourage in tow. One member of said entourage just happens to be donning a KPMG cap and since not just anyone can get their hands on these coveted lids — and since the gentleman’s face is mostly obscured — we’re curious about a few things: 1) Is Tim Flynn leaving the Radio Station for a cabinet position and if so, which one? 2) Was Phil Mickelson joining the Prez for some time on the links and had a overwhelming urge to represent? 3) If this is just some Obama yes-man, did he receive the cap from a Klynveldian representative and is this a bold move to get KPMG representation in the President’s inner circle?
If you’ve got thoughts, theories, or wild-ass guesses, dispense them in the comments and again, welcome back.
There are seven days left in the
year decade and, so far, the bean counter that has made the biggest mark in the last ten years for you has been Peter Olinto.
The man that bludgeoned mnemonics into your gray matter day after day, week after week, during the Aughts is taking a commanding lead into the final week of voting.
We’re keeping the poll open until the very last minute so if your candidate is lagging (TF needs to start calling his fellow sweater vest club members) jump back to the poll and make your voice heard.
That’s what we’re hearing! A source has informed us that TF is in the Garden State today “announcing a significant amount of outsourcing within the IT practice of the firm.”
Our source also indicated that TF — currently running second in the Accountant of the Decade vote — is:
…making general statements about the firm as a whole in regards to outsourcing. We were told that if we were getting outsourced there would be “advanced warning” or that they would try to move people around without letting them go, etc.
“Advanced warning” like a flare gun? Church bells? A lighthouse? The people need something more specific, TF.
It sounds both internal IT and advisory IT professionals are getting the pleasure of the pep talk so if you were there (or going this afternoon, rumor is there’s two meetings), send us your thoughts and discuss.
As we mentioned yesterday, Accenture is on the hunt for a new poster boy. While we speculated that poaching Phil from the House of Klynveld as a possibility for Accenture it’s more likely that the spotlight will be falling on Mickelson and his KPMG cap (black or white, depending on the mood).
Although Phil won’t be dancing on Tiger’s grave, Tim Flynn may have been quietly making the rounds at 345 Park high fiving anyone and everyone at work on the Monday after Tiger’s crash.
If you’ve got any thoughts on how TF celebrated (sweater vests for everyone!) discuss in the comments.
Doubtful! But with the news of sugarplums dancing in some Big 4 heads, we got to wondering if any of the offices of KPMG and PwC might reconsider the firm-wide kibosh on the Holiday jamma-lamma-ding-dong.
Maybe this would be a coup d’état of the highest order but we’ve heard of offices going rogue in the past, so it’s worth mentioning.
Perhaps we’re expecting too much but it seems possible that partners in your local offices could rally the troops by pooling together some of their own cash and springing for cheese trays a few kegs of Beast.
Partners, you wouldn’t necessarily have to let anyone use the bathroom (especially the new associates, we know how they overdo it). You could set up Rent-A-Johns in the driveway.
Because as it stands right now, it appears that Bob Moritz will only be handing out fresh undies, and Tim Flynn will argue that the Phil Mickelson sponsorship is the gift that keeps on giving. That may fly with some but certainly not all. Discuss your hopes for an eleventh hour fiesta in the comments.