Ernst & Young enters a new era after partners in 86 countries approve a restructuring, with a single executive team covering the whole of Europe, the Middle East, India and Africa
The vote gives Mark Otty, currently managing partner for northern Europe and
the Middle East, India and Africa, the go-ahead for a 21-member executive led by
himself with a set of new deputies.
The UK will have two members on the board: Scott Halliday, who is sub-area
managing partner for London, the only city with special board representation,
and Richard King, sub-area managing partner for the UK and Ireland.
Management areas will include central Europe, Nordics, France and Luxembourg,
Mediterranean, south east Europe, the Middle East, the CIS, Africa and India,
all of which will have board members.
Other seats on the board go to HR, audit and advisory, tax and transaction
services.
Sweden remains the only country to remain outside the new grouping because of
‘unique local difficulties’.
Otty said that the restructuring would help its clients in Europe to expand
into developing countries, and ‘new business giants’ from the Middle East,
India, the CIS and Africa to break into developed markets.
Partners in the new structure will not be paid out of a single pool of
profits, but it is unclear how the firm will deal with any liabilities that
arise.
In a statement the firm said: ‘If we thought there was a serious increase in
risk, we wouldn’t be doing this. We also think we will manage risk better as a
result.’
It is understood that the new structure will do away with many national
management practices as the new executive takes over.