Business & Finance

Accounting Firm EY Grapples With Partner Pay, Bear Market in Breakup

Accounting Firm EY Grapples With Partner Pay, Bear Market in Breakup #Accounting #Firm #Grapples #Partner #Pay #Bear #Market #Breakup Welcome to JibGlobe, here is the new resources we have for you today:

Ernst & Young’s leaders, trying to persuade partners to split up the firm, said windfalls would be spread evenly, but a bear market threatens to cut the value of a potential initial public offering of its consulting business, according to an internal webcast and people familiar with the matter.

Speaking to EY’s roughly 13,000 partners Monday, Global Chairman and Chief Executive

Carmine Di Sibio

said that the firm would give all partners in a country the same multiple of pay, according to a recording of the webcast reviewed by The Wall Street Journal.

EY has made some tweaks in recent weeks to its earlier plan to split the firm, including agreeing to offer some payout to partners who retire this year or next, before the deal closes, according to the call.

SHARE YOUR THOUGHTSShould EY follow the split-off model it is planning? Why or why not? Join the conversation below.

One of the Big Four accounting firms, EY is considering a plan to break itself up into an audit-focused company and a faster-growing consulting firm that will advise businesses on matters including taxes, deals and technology.

The market downturn and a potential economic slowdown add to the challenge for the consulting firm to meet demanding targets for revenue growth and profit margins, according to internal documents. Meeting the targets will require cutting costs while increasing market share in a highly competitive market, the people said.

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