Top 50 financial power list 2005

There are challenging times ahead for accountancy in 2005 with regulation, international standards and auditor liability high on the agenda. Accountancy Age identifies the Top 50 movers and shakers to look out for as the issues unravel

1. Sir David Tweedie

Chairman of the IASB

Sir David Tweedie will not be resting on his laurels following his Accountancy Age Award for Outstanding Contribution to the Profession. He has yet to resolve the sticky issues surrounding IAS39 to make Europe’s listed companies’ accounts truly comparable. Aside from this, Sir David will have his hands full with a comprehensive overhaul of accounting in the insurance industry, and the small matter of convergence with the US. He remains the most influential figure in the profession.

2. Mary Keegan

Partner of PricewaterhouseCoopers

Keegan, former chairman of the UK Accounting Standards Board and partner at PricewaterhouseCoopers, was always meant for bigger things. Now that the national accounting standards boards have been overshadowed by the IASB, her new position as head of the government accountancy service is the perfect next step for the the ambitious, intellectually hardy Keegan. She now has responsibility for accountability in public finance, and acts as the Treasury’s finance director.

3. Charlie McCreevy

European commissioner for internal market and services

Replacing Frits Bolkestein in the new commission late last year, the Irishman will be ultimately responsible for the introduction of IFRS in Europe. As well as hoping that the groundwork laid out by his predecessor doesn’t make life difficult, it will be down to him to broker an agreement between the commission and the IASB over IAS39, while keeping Europe’s banks happy. Perhaps a fresh face will give this debate new impetus.

4. David Varney

Chairman of HM Revenue and Customs

The £75m merger and successful integration of the Inland Revenue and Customs & Excise to form HM Revenue and Customs will be the biggest challenge the public sector and new executive chairman David Varney have ever seen. Not only is Varney overseeing its finances, efficiency and transparency, he will have to keep a close watch on the £3bn Capgemini-led ‘Aspire’ outsourcing contract, and the new Small Business Unit that will align the management of corporation tax and VAT.

5. Peter Montagnon

Head of investment affairs at the Association of British Insurers

As one of the figureheads of the investment community, Montagnon will be heavily involved in the debate on changes to auditor liability and, more specifically, the additional responsibilities investors believe auditors should assume to deserve more protection. Following a meeting late last year, things seem to be progressing smoothly, but Montagnon must ensure the current agreements are not derailed by unnecessary argument.

6. Gordon Brown

Chancellor of the Exchequer

It could be a make-or-break year for Gordon Brown, depending on the outcome of the general election. But one thing is for sure - it is now clear the chancellor is the one pulling the strings on whether auditors get more protection in the form of proportionate liability. Last year, the prime minister-in-waiting put a block on a cap when everyone involved, including trade secretary Patricia Hewitt, thought it was a done deal. If auditors get anything at all this year, it will only be if Brown gives the green light.

7. Helen Weir

Financial director of LloydsTSB

Helen Weir is not simply a powerful figure in the financial services industry. Amid cries for more diversity - and particularly more women - on the boards of UK plc, the finance director of LloydsTSB forms part of a new cohort of female directors. She is also one of just 13 female FDs in the FTSE100. But her appointment is far from tokenism. Weir, 41, joined from Kingfisher earlier this year, has an MBA from Stanford University, California and was a consultant at McKinsey.

8. Suzanne Wood

Head of CFO practice at Heidrick & Struggles

Suzanne Wood could well be the busiest member of the Top 50 over the next 12 months. As head of the CFO practice at one of the biggest global executive headhunters in the world, Wood’s skills will be put to the test keeping an eye on the third of the FTSE100 FDs aged 50 or over. But with 20 years’ experience in executive recruitment already in the bag, her credentials are unquestioned. Anyone who gets a call from her could appear on next year’s list.

9. Chris Dickson

Executive counsel of the Joint Disciplinary Scheme

The JDS is being run down and its work will be taken over by a new body, but Dickson still has plenty to do, not least the examination of Ernst & Young’s conduct as auditor of Equitable Life. The JDS report detailing concerns with 11 consecutive audits at Equitable has undoubtedly undermined the firm’s case as its High Court battle over damages nears.

10. Michel Pébereau

President of the European Banking Federation

Throughout the past year, the EBF has been instrumental in bending the ear of the European Commission over its concerns on IAS39. This will continue into 2005, as both sides look set to negotiate an acceptable solution. As chairman of BNP Paribas and the French Banking Association, Pébereau is right in the eye of the storm, with French banks the most outraged over the standard.

11. Iain Richards

Head of governance and public policy at Morley Fund Management

Richards has been one of the key players in the continuing arguments over auditor liability. Representing a company that manages £118bn of shareholder funds, and a keen proponent of shareholder activism, he needs to ensure those funds are properly protected from corporate irresponsibility. Expect any move to undermine safeguards to be fiercely opposed.

12. Jacqui Smith

Minister for the department of trade

With the prospect of an auditor liability cap hanging in the balance, Jacqui Smith has left the audit profession guessing and the business community seething. Following months of wrangling, she is still wrestling with a deal that would see proportionate liability by contract for auditors in return for greater transparency and increased responsibility.

13. Jon Symonds

Chairman of the Hundred Group of FDs

In his dual role as chairman of the Hundred Group of FDs, for the second year running, and CFO of AstraZeneca, Symonds continues to be the most influential finance chief in the UK. Through his work with AstraZeneca, he is also one of the most powerful private sector voices on the implementation of IFRS. He remains a crucial figure in the standards rollout.

14. Andrew Higginson

FD of Tesco

Higginson received one of the biggest bonuses among the FTSE100 FDs at a staggering £1m. That’s a cool £1m behind Peter Clarke of Man Group, but Higginson has the opportunity to make a much bigger difference to consumers’ weekly shop. Expect the battle of the supermarkets to continue into 2005 and Higginson to be in the vanguard.

15. Zarin Patel

Group FD of the BBC

As the BBC’s finance director, Patel has her hands full. The Beeb has just announced a job cull that will affect the finance function, and a recent Ernst & Young report on the BBC’s financial controls was concluded last month - thankfully E&Y didn’t come down to hard on the broadcaster, and even welcomed Patel’s appointment.

16. Sir Christopher Bland

Chairman of the BT Group

He’s not a finance man, but Sir Christopher Bland may have launched the most significant salvo yet against the US’s Securities and Exchange Commission. Sir Christopher said that, if it could, BT would de-list because of the monumental rise in cost. The implication that the US markets are no longer the sought-after place to list may well have accelerated the SEC’s rethink of its approach.

17. Nick Land

Chairman of Ernst & Young UK

The doomsday scenario of 2005 as the year the Big Four becomes the Big Three may give Ernst & Young’s Nick Land sleepless nights. A trial date to hear Equitable’s £2.6bn negligence claim is set for April, and Land has admitted that his firm, currently the UK’s fourth largest, risks collapse. It may not come to that - an out-of-court settlement could offer a way out.

18. Ken Hydon

FD of Vodafone

Despite announcing his intention to retire from the position of FD at Vodafone in July, Ken Hydon remains one of the most prolific holders of non-executive roles in the country. This is no accident. As the requirements of Sarbanes-Oxley increase, so too does the premium on financial numeracy and the demand for FDs to serve in an advisory capacity. Hydon also holds non-exec positions at Tesco and Reckitt Benckiser.

19. Douglas Flint

FD of HSBC and chairman of the Turnbull Review The Turnbull guidance on improving internal control will be one of the defining documents for the profession in 2005. Douglas Flint will be key to how effectively it is delivered to the business community. As well as being the FD for banking giant HSBC, Flint will be hearing evidence of how well the guidance has worked, how it might be enhanced and how the UK’s overall business performance can be bettered.

20. Neil Wood

FD of the London 2012 Olympic Bid

With Paris emerging as the bookies favoured Olympics venue, Neil Wood may have to pull a rabbit out of the hat to prove London is the most financially viable option. Decision day is on 6 July in Singapore, so Wood and co will be working flat out until this then. If London manages to pull off the unlikely, then Wood, currently seconded from Deloitte, could himself be favourite as FD for the games.

21. John Connolly

Deloitte chief executive and UK senior partner

The outspoken John Connolly raised a few eyebrows in 2004 by claiming he ‘didn’t really care’ whether his firm leapfrogged PricewaterhouseCoopers to become the UK’s number one firm. With a £2.9m wage packet, Connolly is the country’s highest-paid accountant and - despite his words - would be delighted for his firm to join him in pole position.

22. Dr John Buchanan

Chairman of AstraZeneca’s audit committee

Dr John Buchanan is already an important man. Take into account his extensive background in senior financial positions with BP, plus his directorship at BHP Billiton and position as ‘financial expert’ on Vodafone’s audit committee, and you have someone with enormous influence.

23. Tim Bush

Associate director at Hermes Focus Asset Management

Hermes is another important investor heavily involved in the auditor liability debate. While Bush represents a company managing funds worth £47bn, he is also a chartered accountant, has a seat on the ICAEW council and is a former employee of PricewaterhouseCoopers. As a result, he can see both sides of the argument. He has sympathy for the auditors but knows shareholders must be protected. He could be crucial in finding a compromise.

24. William Donaldson

Chairman of the Securities and Exchange Commission

As chairman of the US watchdog, Donaldson has one of the most powerful roles on the international finance scene. In his second year in charge, he will have to work even harder, particularly if non-US listed companies continue to threaten to de-list due to the costs and burdens of regulation. If he can restore investor and industry confidence, he could have a very good 2005.

25. William McDonough

Chairman of the PCAOB

William McDonough has made few friends in the world of accountancy since assuming his post as chairman of the influential PCAOB. If US or UK companies find any discrepancies with work on the infamous section 404 of the Sarbanes-Oxley Act, McDonough will be the man to face.

26. Steve Lamey

Chief information officer of HM Revenue and Customs

Accountants everywhere will be bracing themselves for disaster when the Revenue and Customs integrate their IT systems. It could mean the difference between stress-free tax returns and stomach ulcers. Steve Lamey has a proven track record as CIO at BG Group, and his appointment has been widely praised by those in the IT industry.

27. Sir Bryan Nicholson

Chairman of the Financial Reporting Council

As chairman of the FRC for the last three years, as well as having overall responsibility for five bodies including the APB, ASB, FRRP, IDB and the POB, Sir Bryan has a powerful and influential regulatory kingdom. The full rollout of IFRS in the UK and the EU is less than a week old, and Sir Bryan will have a crucial 12 months promoting confidence in corporate reporting and governance.

28. Kevin Hart

FD of Cairn Energy

He’s young, ambitious and has just become one of the youngest finance directors in the FTSE100. Kevin Hart became a man to watch when stratospheric rises in Cairn’s share price put it among the UK’s elite businesses. But Hart doesn’t have an accountancy qualification, a rarity in such a high-profile position – the 36-year-old learned on the job during his 10 years in investment banking.

29. Lawrence Ricciardi

Chairman of Shell Oil’s audit committee

Perhaps an unfamiliar name, Ricciardi’s former roles as president of Nabisco and CFO of IBM in the US, will be vital in his job at Royal Dutch/Shell. All eyes will be firmly on the conduct of Shell’s board after 2004, which saw it restate oil reserve prices and damage its reputation following grave lapses in corporate governance procedures. Ricciardi must ensure the oil giant is whiter than white.

30. Cameron Scott

Executive counsel of the Investigation and Discipline Board

Previously a solicitor, it was a case of poacher-turned-gamekeeper when Cameron Scott took over as head of the UK’s all-new disciplinary body for accountants in 2004. In July, the AIDB started its first investigation into bus-maker Mayflower and its subsidiaries. How Scott handles his increasing case load will be carefully watched, given his pledge to put a stop to ‘delays and obfuscation’.

31. Jason Donovan

Film and TV star

OK, this is a tad mischevious, but it is entirely possible that Jason Donovan could have some influence. He plays a forensic accountant in a drama, Loot, penned by the ACCA’s chief executive Allen Blewitt. It’s been aired in Australia and is waiting for UK release. What Ally McBeal did for lawyers, Donovan may well do for accountants.

32. Mike Rake

Chairman of KPMG International

Mike Rake will look to build on last year’s successes by displaying KPMG’s green credentials when he takes over as chairman of Business in the Community. His firm has already taken the honour of Big Four Firm of the Year at 2004’s Accountancy Age Awards for its success in combining a strong CSR agenda with profitable business.

33. Kieran Poynter

Chairman of PricewaterhouseCoopers

Kieran Poynter is one of the UK’s best-paid accountants, and will be expected to earn his keep in this issue-packed year. PwC will be looking to recruit staff qualified to keep clients up to speed with a welter of rules and regulations. And if that’s not enough, Deloitte will want to capture the number one spot.

34. The ICAEW, CIMA and CIPFA chief executives

Only one man may be left standing by the end of the year, if a merger of the institutes headed up by Charles Tilley, Steve Freer and Eric Anstee takes place. All three chief executives will have achieved much if they manage to push the merger through in the face of stiff opposition. But only one person can take the helm of the 200,000-strong ‘super institute’.

35. Desmond Hudson

Chief executive of ICAS

This year, Desmond Hudson faces a major challenge to reposition the Scottish institute in a landscape that - he assumes - will be changed by the merger of the ICAEW, CIMA and CIPFA. Hudson must make the case that bigger isn’t necessarily better.

36. Microsoft’s accounting module

Microsoft is looking to redefine the business software marketplace, albeit at a relatively pedestrian pace. Having bought Navision and Great Plains a couple of years back, it has now introduced an entry-level accounting software module into Microsoft Office.

37. Bill Hughes

Director general of SOCA

When accountants make their suspicious transaction reports in the future, they’ll be handled by the UK’s new FBI-style Serious Organised Crime Agency. SOCA will tackle organised crime such as money laundering and take over from NCIS in April 2006.

38. Group Litigation Order

Group litigation orders - or legal actions - from hundreds of the world’s best-known companies are turning into the Inland Revenue’s greatest nightmare. The series of group legal actions by big names including Coca-Cola and IBM could cost the Treasury as much as £20bn in tax refunds.

39. Paul Boyle

CEO of the Financial Reporting Council

Paul Boyle has a critical year ahead of him - to get across the FRC’s message of promoting confidence in corporate reporting and governance. The FRC’s reach is unusual in that it extends from auditing and reporting to disciplinaries and investigation. If it’s successful, this unique regulatory model could put Boyle’s name firmly on the map.

40. Jacques Chirac

President of France

Last year, Jacques Chirac made his mark on the accountancy world by arguing over the ‘failings’ of the IFRS on financial instruments. He is the only leader in the EU, and indeed the world, to take such a close interest. Chirac’s efforts were successful for French banks - the EU agreed to a ‘carved-out’ IAS39.

41. Allen Blewitt

Chief executive of the ACCA

It may be a unfair to place Jason Donovan way above his screenwriting colleague Allen Blewitt, but the relatively new ACCA chief has still to prove himself. The association’s centenary year is now behind him, leaving Blewitt to focus on running the organisation. Competition will be fierce should the ICAEW, CIMA and CIPFA pull off their merger.

42. Jurgen Tiedje

EC head of accounting and auditing

New to this position, German lawyer Jurgen Tiedje must find the diplomacy to defuse the explosive situation surrounding IAS39. He has started well, offering some conciliatory gestures to the IASB, but is still maintaining a hard line when it comes to protecting the rights of the influential banks.

43. Jonathan Pierce

Credit Suisse First Boston

Jonathan Pierce is the man behind a CSFB report for investors spelling out the investment bank’s expectation that Northern Rock would see a 10% dip in profits as a result of IAS39. Cue a public spat with the bank about just what would happen with its results. The whole episode served as a warning of how divisive international standards could be if analysts and corporates fail to understand each other.

44. Edward Leigh

Chairman of the Public Accounts Committee

As chairman of the most influential select committee, Edward Leigh is one to watch. His statements, along with studies from the National Audit Office, could prove devastating as the general election in 2005 draws closer. In 2004, Leigh, a barrister by profession, made headlines when he called for full access rights for the NAO when the BBC’s charter is reviewed.

45. Leslie Ferrar

Treasurer to Prince Charles

Just as Accountancy Age went to press we were told that that Ferrar had taken the job of treasurer to Prince Charles. In the grand scheme of things, this may not be a big job, but given the public scrutiny of Royal accounts, Ferrar’s work will have to be scrupulously handled. A tough job, but you get to hobnob with royalty.

46. Larry Ellison

CEO of Oracle

Oracle boss Larry Ellison is a very happy man, after his company’s successful acquisition of bitter rival PeopleSoft. Ellison has promised to finish development of the latest version of PeopleSoft’s ERP application, and then to build a successor that combines the best of PeopleSoft and Oracle’s flagship software.

47. Bob Herz

Head of the US Financial Accounting Standards Board

A former board member of the IASB, Herz has crossed the Atlantic to become chairman of the US FASB. His rating recently rose in auditing circles when he formed part of an influential US panel calling for liability protection for US auditors, mirroring UK efforts, under a new model of financial reporting.

48. Sir John Bourn

Comptroller and auditor general

Sir John Bourn must have taken immense pleasure again this year when he acknowledged that the National Audit Office is meeting its goals and exceeding its performance targets by saving the taxpayers £482m. He now runs an audit inspection team that monitors audits of listed companies.

49. Steve Bundred

Chief executive at the Audit Commission

Steve Bundred, chief executive at the Audit Commission, is bent on a drive for greater efficiency at the commission. Having been on the receiving end of its demands, the former chief executive of the London Borough of Camden is relishing the opportunity to make some necessary changes.

50. Oliver Letwin

Conservative shadow chancellor

With a general election just around the corner, Oliver Letwin, a former merchant banker, has been touring the City and garnered sympathy for his views on the burdens of red tape and taxation, and his assertion that Brown’s policy is increasingly fragile. Expect him to step up a gear during the next couple of months.