Former partners at EY have raised their concerns about issues ranging from leadership and resourcing to pension contributions, as the professional services giant prepares to pull the trigger on a radical restructuring.
With a vote looming on plans to separate its audit and consulting divisions to minimise conflicts of interest that are holding back potential growth, the Financial Timesreports that some 150 retired partners have weighed in with a letter questioning various elements of the proposals.
“Our overriding concern is to see both business lines continue to be robust and successful in the future,” the former partners wrote. “However, as we understand how things are currently being contemplated, we are not sure this critical objective will be met.”
READ EY partner vote on firm’s split pushed back until 2023
The ex-partners say they are “highly perplexed” by a lack of communication over who will lead the new audit firm after the split, according to the letter published by the FT.
They also criticise management for not providing more information in a recent webcast about the future of roles in areas that are “critical” to the future of the audit business, such as IT, actuarial and compliance.
EY has been approached for comment.
The Big Four firm’s restructure, which needs to be approved by its 13,000 partners across the world, has already had to be pushed back, as issues including those raised by the former partners have proved stumbling blocks to starting a formal vote.
The vote was originally set to take place towards the back end of 2022, but has now been pushed into next year.
For all the latest insight on the world of City law, sign up to our weekly newsletter here
To contact the author of this story with feedback or news, email Justin Cash
The Most Read
Crypto Scam: Formula One Team Sponsorer Vanishes After Lying for a Year
Bitcoin and Altcoins Trading Near Make-or-Break Levels
Thieves targeted crypto execs and threatened their families in wide-ranging scheme
Visa Warning: Hackers Ramp Up Card Stealing Attacks At Gas Stations