PracticeAccounting FirmsDeloitte to match Andersen bonus schemes

Deloitte to match Andersen bonus schemes

Deloitte & Touche chief executive John Connolly has revealed the firm is set to introduce bonus schemes for any partners who are not paid as highly as their counterparts at Andersen.

Addressing Andersen partners in London last week, at a near two-hour question and answer session – the first time Connolly has addressed Andersen partners – he spelt out the aims of the firm.

The two firms are expected to be officially merged by 1 July, subject to regulatory approval, and Connolly, in an attempt to alleviate fears of Andersen partners, outlined his intentions.

According to witnesses at the session, he said Deloitte partners, in instances where they earned less than their peers at Andersen, would be offered performance-related bonus schemes to counterbalance any shortfall.

But a spokeswoman for Deloitte said: ‘We believe Deloitte partners earn more than Andersen partners.’ But they refused to comment further on what they described as a ‘private meeting’.

Meanwhile, Connolly added at the meeting that he was committed to selling off Deloitte Consulting, but he would be looking to grow its internal consultancy arm, Management Solutions.

Deloitte reluctantly announced in February it was going to spin off Deloitte Consulting from the firm’s audit operation.

It is understood the firm is considering a number of options including a separate private partnership, selling the business or a flotation on the Stock Exchange.

PricewaterhouseCoopers took more than a year to decide to float its consultancy after failing to sell it to Hewlett-Packard in November of 2000.

Connolly admitted to Accountancy Age earlier this year that Deloitte’s decision was a reaction to events in the US following the Enron disaster, and to business concerns of awarding non-audit contracts to audit clients.

‘Our conclusion was that we were putting at risk a lot of business in our consultancy and this was the right action,’ he added.

Related Articles

BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

5d Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

1w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

1w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor
RSM announces two partner promotions

Accounting Firms RSM announces two partner promotions

3w Emma Smith, Managing Editor
Backsourcing: The latest accountancy trend?

Accounting Firms Backsourcing: The latest accountancy trend?

1m Pillsbury Winthrop Shaw Pittman