ceo brings back website promises service

CEO BRINGS BACK WEBSITE PROMISES SERVICE UPDATE

“Kevin’s extensive knowledge of the PwC Network standards and governance structures will be a huge asset to our firm as we continue our journey to rebuild trust and confidence among our clients, people and stakeholders,” she wrote. But she also issued a veiled warning about what was to come under incoming leader Burrowes. In her email, Stubbins said it had been “an honour” to be the firm’s acting CEO and that she was “really proud” of the actions taken during her short reign. The partnership of 900 and roughly 10,000 staff will suffer for the actions of an out-of-control portion of its tax division that, in the words of Senate committee, led PwC into “a deliberate strategy over many years to cover up the breach of confidentiality and the plan by PwC personnel to monetise it”. The scandal has already spawned an Australian Federal Police investigation, three parliamentary investigations and a new inquiry by the Tax Practitioners Board, the body which uncovered the leaks in the first place.

It is a devastating come-down for an outfit that has long prided itself on being the premium brand among the big four consulting firms. This was a bitter pill to swallow for the members of a firm that has been the largest accounting firm in Australia since the very first Business Review Top 100 list in 1999 and which is now likely to end up smaller than long-time rivals Deloitte, EY and KPMG. The “berating” went down badly with an audience already reeling from the news that PwC global was taking over the Australian firm by installing global clients and industries leader, Kevin Burrowes, as CEO without a partnership vote. Moritz was anything but polite as he blamed the Australian partnership for the crisis, one attendee said.

CEO BRINGS BACK WEBSITE PROMISES SERVICE UPDATE

While Stubbins’ update quickly became public, a hastily arranged emergency meeting later held at about the same time between Australian partners and PwC global chairman Bob Moritz went under the radar. PwC acting chief executive Kristin Stubbins speaks during a parliamentary inquiry this week. PwC global was seizing control of the Australian operation and installing a new CEO and the firm was planning a fire sale of its once mighty government consulting practice – a business which had generated about $600 million in annual revenue – to private equity investor Allegro Funds for just $1. The tone was upbeat – Stubbins thanked everyone for their patience, resilience and support – but it couldn’t mask the ugly truth in her updates. The unravelling began with an email to all staff at 1.04pm last Sunday from PwC Australia’s acting chief executive Kristin Stubbins, who opened with a polite apology for interrupting everyone’s weekend to “share a couple of important updates”.

Ceo brings back website promises service