Please ensure Javascript is enabled for purposes of website accessibility

Category: Big 4

If it happens at a Big 4 accounting firm, we’re talking about it here.

Are Ernst & Young Employees Looking Forward to Their Performance Discussions?

Since this feels like one of those days where everyone is at a ball game or is so hung over that they can’t operate their email, I’ll share the latest news from the mail-cum-money bag:

@EY – Just got an email saying we need to meet with our counselors before 7/31 to discuss annual review. I doubt any comp info though.

Even if these chats don’t involve any numbers, they may be useful in one of two ways: 1) It gives cranky employees the opportunity to fly off the handle because this last busy season was a special kind of personal hell and that no amount of money can possibly make up for that. or 2) It may be the perfect time to inform counselors about what kind of numbers are being thrown around at another firm who the Black Yellow had no problem keeping pace with last year.

Smiling and nodding works too, if that’s more your speed.

PwC’s New Swanky London Location Has Those Left at the Old Dump Mad with Jealousy

P. Dubs’ “More London” or “MoLo” location is reportedly quite the swinging joint but will only house half of the City’s 11,000 employees. Those left back at the frumpy office aren’t really pleased with this development and the FT reports has caused some to catch a case of “office envy”:

The aesthetic appeal [of the MoLo location] is burnished by eco-friendly credentials. PwC is also backing a nearby bistro and wine bar that will emulate Jamie Oliver by training the homeless. The firm’s staff will also be encouraged to use it. The zeitgeistiness of it all is too much for some of those stuck at PwC’s dowdier offices in Embankment Place, near Charing Cross. But relief could be at hand. [Chairman Ian] Powell revealed that the firm is in talks to redevelop the old site to give it a bit more pizzazz.

PwC staff gripped by office envy [FT]

Comp Watch ’11: Rumors of Deloitte Adopting New Raise Structure à la PwC

This just in:

I’m hearing rumblings that Deloitte might be the next in line to adopt a PwC-esque transparent raise structure. I don’t have the exact information, but I’ve heard something about making 1.5x your current salary in 3 years.

As you may remember, PwC announced “exciting changes” to their compensation structure back in May that involved three major parts: 1) Transparency 2) Earning Potential and 3) Milestone Awards. The multiple of 1.5x increase in three years is included in the roughly what PwC laid out in their “Total Rewards” document.

This seems to be a pretty typical move from Deloitte, who is notoriously conservative relative to its autumnally-hued rival. I’m sure if this plan is carried out, they’ll attempt to add in their own quirks to differentiate themselves but I’d be surprised if amounted to anything significant. If you hear any more rumors, contrary or supporting of this latest news, get in touch.

Court Finds That PwC Might Have a ‘Macho Culture’ But It Didn’t Discriminate Against a Former Partner Who Was Basically Having a Nervous Breakdown

Last year we told you about Colin Tenner who was suing PwC on the grounds of disability discrimination. If you remember, back in 2009 Tenner was told his services were no longer needed after he took some sick time due to depression and severe stress that was a result of a client he was serving and his bosses inside P. Dubs. Tenner’s fellow partners allegedly weren’t impressed by this pansyness, as one partner said “real partners don’t get sick.”

While the judge in the tribunal said that some of these partners “were clearly at the end of the queue when tact and sensitivity were being handed out,” it wasn’t enough to constitute discrimination and Tenner’s suit was thrown out.

An industrial tribunal found that while there may have been a “macho culture within the firm”, it did not accept Mr Tenner had been discriminated against. […] [T]he tribunal said there was no evidence that any of the witnesses for PWC “showed any animosity, prejudice, or intolerance to disabled persons”.

In other words, they weren’t saying “that skitzo retard shouldn’t be calling in sick.” Apparently that’s what was needed here.

PWC partner’s discrimination case is dismissed [BBC]

Ernst & Young Auditor Wants to Give a Partner an Earful About Comp Even If He Receives a ‘Very Generous’ Raise

Last week, we tried to get the ball rolling on Ernst & Young compensation rumors and while some may chalk up the lack of chatter to “PwC sticker shock,” others claim this is simply standard operating procedure. If you remember last year, eventually Ernst & Young reported some impressive raises that kept pace with P. Dubs but one of Turley’s troops is expecting the worst this year and would like to give a partner a piece of his mind. Unfortunately, he isn’t sure how to do it:

Hello,

By way of introduction, I am a loyal reader of going concern as well as a big four slave in the audit practice. Slavery had begun four years ago at EY and with all the compensation talk going on at other big four firms, I can’t help but to think –

What is a tactful way of telling a partner during the comp talk, “well thank you for that oh so very generous double digit percentage raise (assuming if it’s even double digit), but I am still unhappy because even after this supposed raise, you are still not paying me jack for the amount of contribution and commitment that you demand from me.”

As noted above, I’m a second year senior from an east coast office and my base is still not breaking mid-60s. Seriously, what the f___?

I will be forever grateful if you post my question up for discussion. Thanks so much!!!

Yours,

Angry EY audit senior

There are various directions we can take here so I’ll try to cover a few options before turning it over to you all.

A. Start off with a variation of, “Look, I’m an ungrateful, bitchy auditor. I also have unrealistic expectations and an inflated notion of my self-worth. I’d really appreciate an explanation as to how you can reconcile these traits to this paltry 10-15% raise.”

B. Continue with the slavery narrative.

C. Start questioning leadership at every turn, from challenging Andrew Cuomo to rumored twisting of Senators’ arms. “If this is the type of firm your running, yada yada yada.”

D. Simply ask if E&Y’s raises will beat PwC’s.

Now you may not think these are “tactful” ways to have this conversation but he did sign, “Angry EY Audit Senior.” If I tried to reason with this person, I’d be doing him a disservice. And when is honesty ever not tactful? If you sugarcoat your frustration, the partner will assume you’re a pushover like everyone else. My guess is most partners want you to give it to them straight. If you’re a performer (and something tells me you think you are) than this partner doesn’t want to lose your talent.

Having said all that, not everyone can muster up the courage to ditch the filter in these meetings. If you’ve got better more practical ideas than what I’ve listed, feel free to bestow your sage advice below.

PwC’s Dennis Nally Reminds Everyone That Audits Aren’t Designed to Detect Fraud, Wants to Meet the Pope, Isn’t Interested in Joining You for Hot Yoga

The Financial Times published an interview with PwC International Chairman Dennis Nally over the weekend and we learn a few interesting things about DN that you probably didn’t know. For starters, he’s very aware that his firm is in a tussle for title of the largest professional services firm ON EARTH, “We’re in a real dog race to continue to sustain our leadership position as the largest professional services network in the world,” he told the FT. Of course this gives us the impression that Denny doesn’t believe that P. Dubs has relinquished the Biggest of the Big 4 title, as some other CEOs have claimed.

And as you might expect, there are various softening questions thrown around, including:

1) Leaders he admires – he wants to meet The Pope because “[Nally] seems impressed by the feat of co-ordination.”

2) Feats of strength – He practiced hot yoga to “strengthen his golf swing” but gave it up because “I found that you had a tendency to over-workout your muscles.”

Despite those little tidbits, Helen Thomas manages to get under Nally’s skin a little when she asks if “auditors should rightly find themselves in the line of fire” when fraud or “disingenuous” accounting occurs:

Mr Nally crosses his arms across his monogrammed shirt, for the first time looking a touch defensive. “There are professional standards out there [and] an audit is not designed under those standards to detect fraud,” he says, pointing out that detecting fraudulent behaviour rests on other indications including a company’s governance, management tone and control systems. “The reasons it has been done that way is because, while we always hear and read about the high-profile fraud, the number of those situations that you actually encounter in practice is very de minimis.

Notice that he doesn’t directly address the “disingenuous” accounting. Examples which might include, say, AIG and Freddie Mac, but rather addressed fraud which is easy to fall back on, since the expectations gap is so blatant (something he has mentioned before).

His statement also appears to indicate that he feels situations like Satyam are immaterial, unless by “de minimis” he intended to mean “rare in occurrence.” But, then again, I suppose semantics are also de minimis.

The man who would be biggest [FT]

Comp Watch ’11: Ernst & Young Keeps ‘Em Waiting

If I seemed impatient about hearing from the Black and Yellow, it’s because I was. Fortunately, someone answered the call:

As of now, we haven’t heard ANYTHING regarding raises/bonuses etc. On our performance management internal website the status of my annual review just changed from “Leadership Review/Roundtable” to “Release to Compensation” so hopefully we will be getting some news soon!

So, no news is…news, isn’t it? Last year, we started hearing Ernst & Young compensation rumors around the 15th and here we are, one week from our nation’s birthday and hardly a peep. Someone buy a partner a happy hour beer tonight or something, wouldja? Keep us updated.

Promotion Bonus Watch ’11: KPMG

In case you weren’t satisfied with all the talk of comp from this week. The latest from the mailbag:

Hey, I am an experienced senior in a small market, yearly performance evaluationss are coming up (July 11-20 or something), but promotes are learning their bonuses, Which are in theory a function of salary adjustments between now and October, just wondering how those are looking?

Btw, Ernst & Young peeps, you better not be holding out on us. I find it hard to believe with the fiscal year ending next week that a grip of you haven’t heard any rumors about comp. Get in touch.

Can a Tax Senior from a Local Firm Make the Jump to Big 4?

Welcome to the I-still-don’t-know-who-Casey-Anthony-is edition of Accounting Career Emergencies. In today’s edition, a tax senior was just laid off from his local firm because of a “lack of work.” Can he jump to a regional or a Big 4 firm without any trouble?

Is your latest raise an insult? Need some rumors debunked? Thinking of giving it all up for your dream of creating the world’s best burrito? Email us at advice@goingconcern.com and we’ll give you the best average advice you’ve ever gotten.

Back to ranks of the funemployed:

Dear Going Concern,

I’m a tax senior and was just laid off from a local accounting firm with about 50 employees due to a “lack of work.” The firm has been losing clients and a lot of the staff has been sitting around lately with nothing to do.

How difficult would it be to move from a small, local firm to a larger, regional one or the Big 4? Thoughts?

Sincerely,

A Loyal Reader

Dear Loyal Reader,

Sorry to hear that you got the axe. That’s never a good feeling. If lots of other staff are sitting around twiddling, they’ll probably be joining you before you know it. But forget about them; you’re thinking about your options which is good, so let’s try and sort this out.

You’re a senior associate, so that’s a plus. Most firms, regardless of size, are hurting for seniors so that puts you in a good spot. You’re also in tax which requires a more specialized knowledge base than audit, so that’s a benefit too. Depending on what kind of clients you have served (I’m guessing individuals and small businesses), your best bet is start with the regional firms in your area. Odds are your experience will match up better with a regional firm, so they’re more likely to take an interest in you.

As for making the jump Big 4, this is a little trickier. I’m not saying it can’t be done, as I made the jump myself but it’s really dependent on your experience. If you’ve mostly prepared run-of-the-mill 1040s, chances are they won’t give you much of a look. On the other hand, if you have a lot of work in a specialized area (e.g. transfer pricing or M&A) on your résumé that will catch their eye.

Bottom line is that if you can find a firm that offers services and has clients that match up your experience, you’ll be a good fit. Good luck.

Is PwC the New KPMG?

From the mailbag:

Hi Caleb,

I am considering becoming an experienced hire at PwC, however I have heard some strange things and can’t seem to get a solid angle on them. I have heard that PwC (still) doesn’t let you expense lunches when traveling. I’ve also heard that PwC is still on Windows XP with Office 2003, Lotus Notes email and using Lenovo ThinkPads. Can you please help me confirm or deny these rumors and add some color around them? Also, are there other things at PwC that I should be wary of? Is PwC the new KPMG?

Thanks,

Concerned Potential Recruit


To the best my knowledge, Concerned, I’ll address these one at at time:

1. I have heard that PwC (still) doesn’t let you expense lunches when traveling. – True. PwC does not allow you to expense lunches when traveling, although it’s my understanding that a “business lunch” is reimbursable.

2. I’ve also heard that PwC is still on Windows XP with Office 2003 – Partially true. P. Dubs is on XP but is running Office 2007.

3. Lotus Notes email – True. There were some layoffs of LN developers way back in the fall of ’09 but it’s our understanding that they still run it.

4. Lenovo ThinkPads – True. You were maybe expecting iPads? Those are for bonuses only.

5. Are there other things at PwC that I should be wary of? – I’d start here.

6. Is PwC the new KPMG? – Um, no. Unless you’re consider all the KPMG partners they’ve picked up makes it the “new KPMG.”

Former KPMG Employee Now a Bean Slinger; May Have the Best Burrito in London

It’s my understanding that burritos are hard to come by in London. Apparently they just opened the first Chipotle there. For many of you, a life without burritos slapped together in 90 seconds (not including the wait on line) isn’t a life worth living. The Brits have managed to survive for a number of centuries without tortillas overstuffed with sour cream and free-range pork. And while Chipotle can certainly churn out a fine burrito, if you happen to find yourself in Spitalfields, East London you might check out Poncho No. 8. It was started by Nick Troen and Frank Yeung, Troen being the ex-Klynvedlian and Yeung a former equities trader at Goldman Sachs.

The friends spent the next three years living together, talking about going into business one day. After a brief separation — Troen worked for KPMG, the accountancy firm, and Innocent, the smoothie maker, before doing a masters, while Yeung worked for Goldman Sachs, the investment bank — they quit their jobs, moved back in together and four months ago launched a Mexican restaurant.

Although it is early days, Poncho No. 8 (Poncho Ocho), their pocket-sized restaurant in Spitalfields, East London, employs a staff of nine, sees 300 customers a day queue down the street for “gourmet” burritos and took £100,000 in its first quarter.

Troen and Yeung are unashamedly influenced by Innocent, the wildly successful fruit drink company also started by graduate friends. “It was always a company we admired. The branding and style had a big impact on us,” Troen says.

Poncho was a typical back of the envelope idea — “we looked at the numbers and thought ‘why has no one done this?’, ” Yeung says — brought to life via the same mix of ingenious, vaguely hippy branding and healthy ingredients. The restaurant features a green-painted “Guac Shack” while the website offers a “countdown to lunch” for bored office workers.

Starting a new Mexican wave [Times via BI]

Comp Watch ’11: Sit-downs at PwC Starting This Week

From the mailbag:

Any rumors on PwC comp going around yet? Partner discussions are supposed to start this week and go through next.

After all the discussion around PwC’s new compensation structure one may have thought that was enough to keep people talking for months. Fortunately, plenty of mini-BoMos out there are anxious about this year’s compensation adjustment and since the fiscal year ends next Thursday, it’s not a wonder. Sooo, if you’ve been (un)fortunate enough to have your little money chat let everyone know how it went. Don’t spare the details: office, level, practice, etc.