The Big Four firm Chairmen are key players in the World Economic Forum Annual Meeting of New Champions in Tianjin, China. Deloitte and Touche, Ernst and Young and PricewaterhouseCoopers are key Mentors of the program, while KPMG was noticeably missing.
Here are some excerpts from their interviews. The key takeaway is that these Chairmen while fully acknowledging the financial crisis threatening the world economic order and its tough consequences on business and growth, seem to have a pragmatic positive attitude on a new world order where the BRICs lead with inordinate growth, creating opportunities for continued expansions in financial and business services.
Deloitte and Touche – Jim Quigley
What do you see as being the most significant growth trends for financial services?
Much of the significant growth trends relate to the emerging markets, particularly the BRIC countries of Brazil, Russia, India and China. As businesses in those markets seek to expand, either domestically or globally, they are increasingly looking for financial due diligence, corporate finance, and capital raising advisory services.
The rapidly growing middle class in these emerging markets is also now demanding a wide range of financial services, including consumer banking, insurance products and various investment and wealth management services.
http://www.weforum.org/en/events/AnnualMeetingoftheNewChampions2008/InterviewJimQuigley/index.htm
Ernst and Young – Jim Turley
Entreprenuers can thrive in this tough environment since they are persistent visionaries since they look at the world around them and fulfill a need that they see with a product or service. There are more needs today than ever before and entrepreneurs can do well to persevere and fulfill the needs. Globalization and efficient capital movement around the world leading to world standards. Reverse coupling between Asia and USA seems to be the new order of the day.
http://www.youtube.com/watch?v=Aux9iiUlgKA
PricewaterhouseCoopers – Samuel DiPiazza
Do you support the thesis that the Asian economies have now ‘decoupled’ from that of the US economy?
It is true that the economic volatility and problems experienced in the United States and other developed markets would have, in the past, spelled a global economic downturn. This time around, however, the economic strength of key Asian and other emerging markets—most notably China and India—could at least partially offset the impact of economic slowdowns in the developed world. These markets have enormously robust domestic economies – they’re growing and that’s good for all of us. The world is however a connected place and I don’t believe a complete decoupling will become a reality.
http://www.weforum.org/en/events/AnnualMeetingoftheNewChampions2008/Interview_samueldipiazza/index.htm
Sunday, September 28, 2008
Friday, September 26, 2008
Accenture (NYSE: ACN) Q4-2008 Profits Shine, Stock up 6% in Down Market
And The Accenture Machine Keeps Rolling On!
Crisis? Slowdown?
What crisis? Where slowdown?
You would not believe your senses on Accenture’s results reported yesterday. Q4-2008 profits of 57 cents grew 34% from 50 cents from prior year quarter and actually beat analysts' expectations by a penny. The company forecasts further growth in the year ahead. According to Accenture, more clients are looking for its consulting and outsourcing services despite a weak economy and terrible financial markets.
Net revenue, or revenue before reimbursements from clients rose to $6.0 billion from $5.1 billion, beating Wall Street estimates by $19 million. Shares were up 2.2% in after hours trading on Thursday, September 25, 2008 and rose a further 5.5% on Friday to $39 per share. ACN’s has been strong at around $40 per share for all of 2008, in spite of the doom and gloom over other parts of the market.
In typical Accenture fashion, CEO William Green said that while financial institutions account for around 20 percent of its overall business, the recent crisis posed opportunities as well as challenges. "Many companies are being forced to reinvent themselves, and seeking Accenture's expertise in helping companies transform into more efficient organizations,” he said.
Not only that, the company is bullish about 2009 as well. It forecast earnings of $2.85 to $2.93 a share, compared with analyst consensus of $2.88. On the sales front, Accenture expects net revenue growth of 9 percent to 12 percent from $23.39 billion in fiscal 2008.
For Q1-2009 (Quarter ending 11/31/2008), it forecast net revenue of $6.15 -$6.35 billion, above Wall Street of $6.13 billion by a good $200 million. Accenture said that new bookings for the fourth quarter were a record $7.67 billion, a sign its strong momentum would continue into 2009. The company raised its annual dividend to 50 cents per share, up 8 cents from the previous year.
As an investor, what’s not to like about this company, unparalleled financial results, strength in a despairing environment, tough management, global franchise, secure balance sheet, opportunity capitalizer and just an overall money machine. We have been commenting all along that this is a fortress stock, and Accenture has not disappointed in delivering superlative performance in an atmosphere where almost every company has sounded alarms and lack of confidence. We just hope that there is nothing here which is not transparent and shows up the company in a bad light.
Crisis? Slowdown?
What crisis? Where slowdown?
You would not believe your senses on Accenture’s results reported yesterday. Q4-2008 profits of 57 cents grew 34% from 50 cents from prior year quarter and actually beat analysts' expectations by a penny. The company forecasts further growth in the year ahead. According to Accenture, more clients are looking for its consulting and outsourcing services despite a weak economy and terrible financial markets.
Net revenue, or revenue before reimbursements from clients rose to $6.0 billion from $5.1 billion, beating Wall Street estimates by $19 million. Shares were up 2.2% in after hours trading on Thursday, September 25, 2008 and rose a further 5.5% on Friday to $39 per share. ACN’s has been strong at around $40 per share for all of 2008, in spite of the doom and gloom over other parts of the market.
In typical Accenture fashion, CEO William Green said that while financial institutions account for around 20 percent of its overall business, the recent crisis posed opportunities as well as challenges. "Many companies are being forced to reinvent themselves, and seeking Accenture's expertise in helping companies transform into more efficient organizations,” he said.
Not only that, the company is bullish about 2009 as well. It forecast earnings of $2.85 to $2.93 a share, compared with analyst consensus of $2.88. On the sales front, Accenture expects net revenue growth of 9 percent to 12 percent from $23.39 billion in fiscal 2008.
For Q1-2009 (Quarter ending 11/31/2008), it forecast net revenue of $6.15 -$6.35 billion, above Wall Street of $6.13 billion by a good $200 million. Accenture said that new bookings for the fourth quarter were a record $7.67 billion, a sign its strong momentum would continue into 2009. The company raised its annual dividend to 50 cents per share, up 8 cents from the previous year.
As an investor, what’s not to like about this company, unparalleled financial results, strength in a despairing environment, tough management, global franchise, secure balance sheet, opportunity capitalizer and just an overall money machine. We have been commenting all along that this is a fortress stock, and Accenture has not disappointed in delivering superlative performance in an atmosphere where almost every company has sounded alarms and lack of confidence. We just hope that there is nothing here which is not transparent and shows up the company in a bad light.
BearingPoint (NYSE: BE) Stock Price Hits All Time Low – 50 Cents
On September 19, 2008 just a week ago, BearingPoint (NYSE: BE) stock hit a new 52 week and all-time low of just 50 cents a share. Based on the 218 shares outstanding, the market capitalization on that day was only $109 million. Add this to about $650 million in debt to come to an enterprise value of $759 million.
These is an astounding stock price. At sales of $3.4 billion, the price to sales ratio is 0.03 or that sales are almost thirty times the market capitalization. Market capitalization per each of the 15,900 employees is only about $7,000 less than an month’s salary for a typical consultant.
BE’s June 2008 2nd quarter actually produced net income of $18 million when analyst were expecting a loss of $18 million, a 200% surprise, which however did nothing to the stock price, down to historic lows today from heady heights of high teens in 2001.
We have asked the question earlier whether BE should continue as a public company, with such low market capitalizations, the case for privatization becomes even stronger. The question is whether investors have the risk appetite and can even find the credit to consummate such a deal.
These is an astounding stock price. At sales of $3.4 billion, the price to sales ratio is 0.03 or that sales are almost thirty times the market capitalization. Market capitalization per each of the 15,900 employees is only about $7,000 less than an month’s salary for a typical consultant.
BE’s June 2008 2nd quarter actually produced net income of $18 million when analyst were expecting a loss of $18 million, a 200% surprise, which however did nothing to the stock price, down to historic lows today from heady heights of high teens in 2001.
We have asked the question earlier whether BE should continue as a public company, with such low market capitalizations, the case for privatization becomes even stronger. The question is whether investors have the risk appetite and can even find the credit to consummate such a deal.
Nomura Buys Lehman Brothers Europe for $2, PwC Adminstrators
Earlier, we had blogged about Nomura of Japan buying the equities and investment banking business of Lehman Brothers Europe for an undisclosed amount. PricewaterhouseCoopers UK were appointed the administrators of this bankrupt firm to assure an orderly disposal.
The Wall Street Journal recently revealed that the purchase was made for a nominal sum of $2, less than a Big Mac or about the change in your wallet. Nomura does take over compensating the employees but excludes the liabilities, so it is protecting financial jobs in the City of London. But what a price to pay!
Now we hear that Nomura will not be buying Lehman’s fixed income business
The Wall Street Journal recently revealed that the purchase was made for a nominal sum of $2, less than a Big Mac or about the change in your wallet. Nomura does take over compensating the employees but excludes the liabilities, so it is protecting financial jobs in the City of London. But what a price to pay!
Now we hear that Nomura will not be buying Lehman’s fixed income business
Wednesday, September 24, 2008
Big Four Make Working Mothers Magazine Best Companies List
Three of the Big Four firms have made the Top 10 of the latest Working Mother magazine rankings for Best Companies for Working Mothers. Ernst and Young, KPMG and PricewaterhouseCoopers made it into the elite group of 10 best companies which provide mom-friendly part-time career paths for working mothers. Deloitte and Accenture didn’t make the top 10 but surely made in the top 100. BearingPoint was conspicuously missing, and Capgemini didn’t make the list either, more so since it didn’t fall into the covered US company universe.
Here’s the Top 10 URL link:
http://www.workingmother.com/web?service=direct/1/ViewArticlePage/dlinkFullArticle&sp=1658&sp=94
Here’s a synopsis of what’s involved and how companies get into this select list (extracted from the working mother website):
“What’s Measured
Seven areas are measured and scored: workforce profile, compensation, child care, flexibility, time off and leaves, family-friendly programs and company culture.
This Year’s Winners
With the help of an independent survey research company, we validated the applications for completeness and tabulated the scores, which then determined the winners.
For this year’s 100 Best, we gave particular weight to family-friendly programs, flexibility, leave policies and benefits for part-timers. All applicants receive feedback showing how they compare to other applicants; however, the names of applicants that do not make the list are kept confidential. The company profiles, culled from the applications and interviews with company representatives, reflect 2007 data. Fact checkers verify all the information.”
Kudos again to the Big Four firms for actively supporting working mothers, enabling them to balance their busy family lives with their career aspirations, and actively providing creative ways for moms to advance within a framework which often demands full-time attention to career development and firm matters.
Here’s the Top 10 URL link:
http://www.workingmother.com/web?service=direct/1/ViewArticlePage/dlinkFullArticle&sp=1658&sp=94
Here’s a synopsis of what’s involved and how companies get into this select list (extracted from the working mother website):
“What’s Measured
Seven areas are measured and scored: workforce profile, compensation, child care, flexibility, time off and leaves, family-friendly programs and company culture.
This Year’s Winners
With the help of an independent survey research company, we validated the applications for completeness and tabulated the scores, which then determined the winners.
For this year’s 100 Best, we gave particular weight to family-friendly programs, flexibility, leave policies and benefits for part-timers. All applicants receive feedback showing how they compare to other applicants; however, the names of applicants that do not make the list are kept confidential. The company profiles, culled from the applications and interviews with company representatives, reflect 2007 data. Fact checkers verify all the information.”
Kudos again to the Big Four firms for actively supporting working mothers, enabling them to balance their busy family lives with their career aspirations, and actively providing creative ways for moms to advance within a framework which often demands full-time attention to career development and firm matters.
Tuesday, September 23, 2008
PwC Administrators Help Sell Lehman Europe to Nomura
As we blogged earlier, PricewaterhouseCoopers LLP are the joint administrators to Lehman Brothers International Europe (‘Lehman Brothers’), and today’s announcement on the PwC UK website and over all financial newswires generally is that the investment banking and equities businesses of Lehman Brothers are being sold to Nomura of Japan. The deal covers investment banking and equities in the Netherlands, Qatar, Dubai, Kuwait, the U.K., Italy, Germany and Sweden, but excludes trading assets or trading liabilities.
According to PricewaterhouseCoopers LLP, “….we are absolutely delighted to be able to confirm that we have secured a sale of the investment banking and equities businesses of Lehman Brothers in the UK and Europe. This sale, which is conditional on a number of issues, means the continuing employment of around 2,500 Lehman’s staff, a vast number of whom have been working with us to get this unprecedented deal done.”
While this is good news for Lehman Brothers employees in Europe, and certainly kudos to PwC for orchestrating a complex transaction in barely a week after being appointed administrators, we certainly hope “the sale, which is conditional on a number of issues” does clear all those conditional issues and does get done. As many in the M&A business know, buyers propose a large number of conditions advantageous to their situation, and quite rigorous in insisting on their fulfillment to consummate the deal. The big issue is what potential liabilities are on Lehman’s books and balance sheet, and their unintended consequences which could be driving up the buyer’s risk and eventual ability to close.
Nomura picked up all of Lehman’s Asian operations for just $225 million, but the financial terms of this deal were not available as of the time we went to print.
According to PricewaterhouseCoopers LLP, “….we are absolutely delighted to be able to confirm that we have secured a sale of the investment banking and equities businesses of Lehman Brothers in the UK and Europe. This sale, which is conditional on a number of issues, means the continuing employment of around 2,500 Lehman’s staff, a vast number of whom have been working with us to get this unprecedented deal done.”
While this is good news for Lehman Brothers employees in Europe, and certainly kudos to PwC for orchestrating a complex transaction in barely a week after being appointed administrators, we certainly hope “the sale, which is conditional on a number of issues” does clear all those conditional issues and does get done. As many in the M&A business know, buyers propose a large number of conditions advantageous to their situation, and quite rigorous in insisting on their fulfillment to consummate the deal. The big issue is what potential liabilities are on Lehman’s books and balance sheet, and their unintended consequences which could be driving up the buyer’s risk and eventual ability to close.
Nomura picked up all of Lehman’s Asian operations for just $225 million, but the financial terms of this deal were not available as of the time we went to print.
Friday, September 19, 2008
US Financial Crisis Impacts Big Four Firm Audit Fees
The current financial crisis in the US has taken a big toll on some storied companies in the recent few months, with unimaginable consequences for the entire financial sector. Consider this:
FannieMae (NYSE:FNM) and FreddieMac (NYSE:FRE) are now under US government conservatorship
Bear Stearns (NYSE:BSC) was purchased for a pittance by JP Morgan (NYSE:JPM)
Merrill Lynch (NYSE:MER) sold itself to Bank of America (NYSE:BAC)
Lehman Brothers went bankrupt recently (NYSE:LEH)
Till just a while ago, all these were public companies traded on the stock exchange and being regularly audited by none other than the Big Four firms. Now with the loss of these firms, the firms have lost big audit fees (at least as a first order impact), not counting any continuations of audit under US government conservatorship or their buying companies, or eventual work from these events.
From our quick analysis (we believe our numbers are right, but provide no guarantees), Deloitte appears to be the most negatively impacted.
Deloitte loses almost $130 million of audit, tax and advisory fees at 2007 levels due to the change of ownership of:
Merrill Lynch (2007 total fees: $57.1 million, 2006 total fees: $51.9 million)
Bear Stearns (2007 total fees: $20.8 million, 2006 total fees: $18.7 million)
FannieMae (2007 total fees: $49.3 million, 2006 total fees: $42.2 million)
Next comes PricewaterhouseCoopers with a loss of $73 million at 2007 levels due to the change of ownership of:
Freddie Mac (2007 total fees: $73.1 million, 2006 total fees: $46.1 million)
Next comes Ernst and Young with a loss of $30 million at 2007 levels due to the change of ownership of:
Lehman Brothers (2007 total fees: $30.1 million, 2006 total fees: $29.5 million)
Surprisingly, KPMG, which is reputedly strongest in financial services and known to have the largest client roster in this sector has been unaffected as yet.
Total Loss to Big Four Firms: $231 Million Dollars
Though our sympathies are totally with the employees (including likely thousands of Big4 alumni) of the affected firms, who have been affected likely due to no fault of their own, we thought we would point out how deep this crisis has affected the Big Four firms.
FannieMae (NYSE:FNM) and FreddieMac (NYSE:FRE) are now under US government conservatorship
Bear Stearns (NYSE:BSC) was purchased for a pittance by JP Morgan (NYSE:JPM)
Merrill Lynch (NYSE:MER) sold itself to Bank of America (NYSE:BAC)
Lehman Brothers went bankrupt recently (NYSE:LEH)
Till just a while ago, all these were public companies traded on the stock exchange and being regularly audited by none other than the Big Four firms. Now with the loss of these firms, the firms have lost big audit fees (at least as a first order impact), not counting any continuations of audit under US government conservatorship or their buying companies, or eventual work from these events.
From our quick analysis (we believe our numbers are right, but provide no guarantees), Deloitte appears to be the most negatively impacted.
Deloitte loses almost $130 million of audit, tax and advisory fees at 2007 levels due to the change of ownership of:
Merrill Lynch (2007 total fees: $57.1 million, 2006 total fees: $51.9 million)
Bear Stearns (2007 total fees: $20.8 million, 2006 total fees: $18.7 million)
FannieMae (2007 total fees: $49.3 million, 2006 total fees: $42.2 million)
Next comes PricewaterhouseCoopers with a loss of $73 million at 2007 levels due to the change of ownership of:
Freddie Mac (2007 total fees: $73.1 million, 2006 total fees: $46.1 million)
Next comes Ernst and Young with a loss of $30 million at 2007 levels due to the change of ownership of:
Lehman Brothers (2007 total fees: $30.1 million, 2006 total fees: $29.5 million)
Surprisingly, KPMG, which is reputedly strongest in financial services and known to have the largest client roster in this sector has been unaffected as yet.
Total Loss to Big Four Firms: $231 Million Dollars
Though our sympathies are totally with the employees (including likely thousands of Big4 alumni) of the affected firms, who have been affected likely due to no fault of their own, we thought we would point out how deep this crisis has affected the Big Four firms.
PricewaterhouseCoopers Winds Down Lehman Brothers UK
Following the still-surprising collapse of Lehman Brothers over last weekend, PricewaterhouseCoopers LLP was appointed as joint administrators to Lehman Brothers International (Europe) the following Monday, September 15, 2008. Specifically, four PwC partners Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis have been appointed as leaders of this effort to wind down the business in an orderly fashion.
Entities in administration include Lehman Brothers, the principal UK trading company in the Lehman group, Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd., which are currently the only UK incorporated companies in administration. . Lehman Brothers International (Europe) is the European unit of Lehman Brothers Holdings Inc.
Today’s news suggest that PwC is close to selling at least the bank's asset management and corporate finance units within days. "We are in discussions with potential partners at present and our aim is to complete a deal in the next few days," according to PwC. The disposal of LB’s European real estate interests is likely to take more time, even though PwC had made good progress in identifying the assets involved
According to PwC, "Since appointment on 15 September, despite the complexity of LBUKRE and its trading activities, the Administrators have made considerable progress in identifying what assets are under the control of LBUKRE and have taken steps to ensure that the pace and structure of any disposals optimise the realisations generated for the creditors of LBUKRE. Our review of the LBUKRE portfolio will not be completed for several weeks, but we are gathering all expressions of interest so that we can communicate with interested parties as soon as we are ready".
On the legal side, 20 Linklaters UK partners are advising on the Lehman Brothers UK administration along with 60 associates, reputedly one of the largest senior legal teams involved in a bankruptcy since 2000. Owing to the complexity, Linklaters estimates the legal team will zoom to 200 within months.
Barclays bought at least some part of Lehman’s US operations gaining 10,000 top Lehman employees and a valuable asset at a throwaway price.
The financial crisis appears to be impacting every single financial institution of note and along with it, in a direct manner the Big Four Accounting Firms.
Entities in administration include Lehman Brothers, the principal UK trading company in the Lehman group, Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd., which are currently the only UK incorporated companies in administration. . Lehman Brothers International (Europe) is the European unit of Lehman Brothers Holdings Inc.
Today’s news suggest that PwC is close to selling at least the bank's asset management and corporate finance units within days. "We are in discussions with potential partners at present and our aim is to complete a deal in the next few days," according to PwC. The disposal of LB’s European real estate interests is likely to take more time, even though PwC had made good progress in identifying the assets involved
According to PwC, "Since appointment on 15 September, despite the complexity of LBUKRE and its trading activities, the Administrators have made considerable progress in identifying what assets are under the control of LBUKRE and have taken steps to ensure that the pace and structure of any disposals optimise the realisations generated for the creditors of LBUKRE. Our review of the LBUKRE portfolio will not be completed for several weeks, but we are gathering all expressions of interest so that we can communicate with interested parties as soon as we are ready".
On the legal side, 20 Linklaters UK partners are advising on the Lehman Brothers UK administration along with 60 associates, reputedly one of the largest senior legal teams involved in a bankruptcy since 2000. Owing to the complexity, Linklaters estimates the legal team will zoom to 200 within months.
Barclays bought at least some part of Lehman’s US operations gaining 10,000 top Lehman employees and a valuable asset at a throwaway price.
The financial crisis appears to be impacting every single financial institution of note and along with it, in a direct manner the Big Four Accounting Firms.
Friday, September 12, 2008
Deloitte USA to Layoff 900, 2% of US Staff, Impacted by Economy Slowdown
We are a little late on this, but WebCPA and Wall Street Journal report that Deloitte USA plans to layoff 900 staff or about 2% of its 45,000 US employees, according to their spokesperson Deborah Harrington. There seems to be no official statement that at least we can find on the Deloitte.com website. But we finally did personally see the Wall Street Journal article.
The Wall Street Journal article has to be viewed through subscription but the WebCPA article is at http://www.webcpa.com/article.cfm?articleid=28993&searchTerm=deloitte%20layoff
There is also an extensive write-up on this at the Re:The Auditors blog who confirm this based on the author, Francine McKenna’s phone conversation with Deborah Harrington.
http://www.retheauditors.com/2008/08/deloitte-statement-on-layoffs.html.
According to these sources, "Just like anybody else, we are looking to cut costs," said spokesperson Deborah Harrington. Further in an email statement, "In a move to align its workforce to better reflect business and client needs, Deloitte LLP is taking a number of steps to reduce costs, including adjustments to its workforce levels in the United States. The cost-containment program is taking place across all support functions and client service units. Part of the plan is to align our headcount according to current and projected revenues. Like our competitors, we are affected by a number of economic events, including the overall slowdown in the U.S. and global economies."
If this is true, then Deloitte seems to be succumbing to the economic pressures which seem to have completely bypassed the Big Four firms (see Accenture’s confidence) and Deloitte’s recent whopping 18% revenue growth statement. Also it seems to be at odds with KPMG’s recently announced Global Job Fair, which would point to their attempt to attract employees quickly and cut through any hiring chain delays.
The other Big Four firms have not followed suit as far as we know, but can only imagine that certain practices within the firms must have been affected by economic turmoil (real estate, M&A, financial services, advisory to name a few), and the management may be prudently managing either voluntary or forced attrition in response to slowing client demands for professional services.
The Wall Street Journal article has to be viewed through subscription but the WebCPA article is at http://www.webcpa.com/article.cfm?articleid=28993&searchTerm=deloitte%20layoff
There is also an extensive write-up on this at the Re:The Auditors blog who confirm this based on the author, Francine McKenna’s phone conversation with Deborah Harrington.
http://www.retheauditors.com/2008/08/deloitte-statement-on-layoffs.html.
According to these sources, "Just like anybody else, we are looking to cut costs," said spokesperson Deborah Harrington. Further in an email statement, "In a move to align its workforce to better reflect business and client needs, Deloitte LLP is taking a number of steps to reduce costs, including adjustments to its workforce levels in the United States. The cost-containment program is taking place across all support functions and client service units. Part of the plan is to align our headcount according to current and projected revenues. Like our competitors, we are affected by a number of economic events, including the overall slowdown in the U.S. and global economies."
If this is true, then Deloitte seems to be succumbing to the economic pressures which seem to have completely bypassed the Big Four firms (see Accenture’s confidence) and Deloitte’s recent whopping 18% revenue growth statement. Also it seems to be at odds with KPMG’s recently announced Global Job Fair, which would point to their attempt to attract employees quickly and cut through any hiring chain delays.
The other Big Four firms have not followed suit as far as we know, but can only imagine that certain practices within the firms must have been affected by economic turmoil (real estate, M&A, financial services, advisory to name a few), and the management may be prudently managing either voluntary or forced attrition in response to slowing client demands for professional services.
Saturday, September 06, 2008
Big Four Firm Get Top Spots in Business Week Best Career Companies Ranking
Great news for Big Four Alumni! You made the right choice for your career.
Business Week Magazine just came out with its list of “100 Best Places to Launch A Career in 2008.” And all four of the Big Four firms this year are in the top 5 of that list, the only other is the ultra prestigious investment banking firm of Goldman Sachs.
The top five in descending 2008 ranks are:
1. Ernst and Young, 2007 rank of 3 (http://images.businessweek.com/ss/08/09/0904_first_jobs/2.htm)
2. Deloitte and Touche, 2007 rank of 1 (http://images.businessweek.com/ss/08/09/0904_first_jobs/3.htm)
3. PricewaterhouseCoopers, 2007 of 2 (http://images.businessweek.com/ss/08/09/0904_first_jobs/4.htm)
4. Goldman Sachs, 2007 rank of 13
5. KPMG, 2007 rank of 11 (http://images.businessweek.com/ss/08/09/0904_first_jobs/6.htm)
In 2007, three of the Big Four firms were in the top five, but with KPMG having creditably moved up from 11 to 5, they have essentially shut out the competition. The Big4 firms had a total of 12,000 new hires in 2007, and provide them with a salary of $50,000 to $60,000, and a nice starting bonus of around $3,000.
All these firms even beat hotshot Google, which actually dropped from being rank 5 in 2007 to rank 7 in 2008.
Also in the top 100 list is Accenture with 2008 rank of 47, falling precipitously from 2007 rank of 8.
Here’s what Business Week gushed about Ernst and Young, “No one recognizes the importance of perks more than Ernst & Young, where average salaries haven't increased substantially in at least three years. The Big Four firm still attracts more than 3,000 highly sought-after accounting students each year with extensive training and mentoring programs, performance bonuses, and the promise of face time with top executives—including an annual trip to Walt Disney World (DIS) for all U.S.-based interns, where they get to mingle with the powers that be. It's perks like that, along with a recruiting machine in overdrive and near-certain advancement to a supervisor-level position in just two years, that landed Ernst & Young atop BusinessWeek's third annual Best Places to Launch a Career ranking this year, unseating rival Deloitte.”
And more about E&Y, “To improve retention, Ernst & Young in 1999 began doubling its match after four years of service to 3%. Today, it boasts the best five-year retention among Big Four firms: 34%. Although that still leaves a lot to be desired, the savings in recruiting and training expenses are significant. Explains Mary A. Stringfield, E&Y's head of Americas benefits: "Retention was a key factor for designing that match formula."”
And BW provided just a backhanded compliment to banks, “While accounting firms again dominate the top of the list, owing to impressive perks and intense demand, one of the most surprising things about this year's ranking is just how well the investment banks fared.”….and we can only guess what this year’s survey will say about Wall Street.
Congratulations to all the Big Four firms, their efforts to hire, retain and nurture top talent has landed them top slots, making their alumni both proud and pleased to have been part of building such tremendous reputations.
Business Week Magazine just came out with its list of “100 Best Places to Launch A Career in 2008.” And all four of the Big Four firms this year are in the top 5 of that list, the only other is the ultra prestigious investment banking firm of Goldman Sachs.
The top five in descending 2008 ranks are:
1. Ernst and Young, 2007 rank of 3 (http://images.businessweek.com/ss/08/09/0904_first_jobs/2.htm)
2. Deloitte and Touche, 2007 rank of 1 (http://images.businessweek.com/ss/08/09/0904_first_jobs/3.htm)
3. PricewaterhouseCoopers, 2007 of 2 (http://images.businessweek.com/ss/08/09/0904_first_jobs/4.htm)
4. Goldman Sachs, 2007 rank of 13
5. KPMG, 2007 rank of 11 (http://images.businessweek.com/ss/08/09/0904_first_jobs/6.htm)
In 2007, three of the Big Four firms were in the top five, but with KPMG having creditably moved up from 11 to 5, they have essentially shut out the competition. The Big4 firms had a total of 12,000 new hires in 2007, and provide them with a salary of $50,000 to $60,000, and a nice starting bonus of around $3,000.
All these firms even beat hotshot Google, which actually dropped from being rank 5 in 2007 to rank 7 in 2008.
Also in the top 100 list is Accenture with 2008 rank of 47, falling precipitously from 2007 rank of 8.
Here’s what Business Week gushed about Ernst and Young, “No one recognizes the importance of perks more than Ernst & Young, where average salaries haven't increased substantially in at least three years. The Big Four firm still attracts more than 3,000 highly sought-after accounting students each year with extensive training and mentoring programs, performance bonuses, and the promise of face time with top executives—including an annual trip to Walt Disney World (DIS) for all U.S.-based interns, where they get to mingle with the powers that be. It's perks like that, along with a recruiting machine in overdrive and near-certain advancement to a supervisor-level position in just two years, that landed Ernst & Young atop BusinessWeek's third annual Best Places to Launch a Career ranking this year, unseating rival Deloitte.”
And more about E&Y, “To improve retention, Ernst & Young in 1999 began doubling its match after four years of service to 3%. Today, it boasts the best five-year retention among Big Four firms: 34%. Although that still leaves a lot to be desired, the savings in recruiting and training expenses are significant. Explains Mary A. Stringfield, E&Y's head of Americas benefits: "Retention was a key factor for designing that match formula."”
And BW provided just a backhanded compliment to banks, “While accounting firms again dominate the top of the list, owing to impressive perks and intense demand, one of the most surprising things about this year's ranking is just how well the investment banks fared.”….and we can only guess what this year’s survey will say about Wall Street.
Congratulations to all the Big Four firms, their efforts to hire, retain and nurture top talent has landed them top slots, making their alumni both proud and pleased to have been part of building such tremendous reputations.
Wednesday, September 03, 2008
KPMG’s World Job Fair on September 24th – Attend Right from Your PC!
We were browsing KPMG’s website and came across the upcoming KPMG World Job Fair, virtually available on the internet from 24 to 26 September 2008, and an interesting event for all Big4 alumni who wish to learn more about KPMG people and career options.
This offers an exciting and unique look into the fairly private world of Big4 firms and recruiting processes. KPMG will run this global fair for a straight 48 hours and offers a variety of way to interact:
At the Exhibition Hall, you can see stands from various countries and functions at KPMG to help you understand better Life at KPMG and its culture, values, and corporate citizenship.
At the Conference Center, you have the opportunity to watch videos and take part in live question & answer sessions.
Finally, in the Networking Lounge, KPMG invites you to really discover what life and work is really about at the firm, by talking live to KPMG staff from all over the world.
In KPMG’s own words, “This is a great chance to quiz KPMG firms' professionals - and find out everything you want to know. Find out first hand why it's such a great place to build your career.” Strong sentiment indeed.
We enjoy such openness at a time when recruitment has become a blackbox and it is difficult to make real contacts with hiring professionals within organizations. More so, the Big4 firms have become so big and bureaucratic that reaching the manager who has hiring needs often means meandering through HR complexities.
If this fair works as good as it sounds, KPMG may have a chance to meet thousands, if not tens of thousands, of interested global applicants and enable them to connect with the right folks within the firm. From another viewpoint, this makes KPMG a net savvy recruiter, allowing it to get to candidates without going through the recruiting pipeline.
Clearly, this is a place where the internet’s initial threat of disintermediation is really working in connecting large groups of people on either side to intimately connect with each other.
On our part, we’ll try to visit the fair and provide our impressions, it’s not as exciting as the DNC or the RNC, but much more relevant to your career we believe.
More details on this fair at http://events.unisfair.com/index.jsp?eid=298&seid=29&code=kpmgflash
This offers an exciting and unique look into the fairly private world of Big4 firms and recruiting processes. KPMG will run this global fair for a straight 48 hours and offers a variety of way to interact:
At the Exhibition Hall, you can see stands from various countries and functions at KPMG to help you understand better Life at KPMG and its culture, values, and corporate citizenship.
At the Conference Center, you have the opportunity to watch videos and take part in live question & answer sessions.
Finally, in the Networking Lounge, KPMG invites you to really discover what life and work is really about at the firm, by talking live to KPMG staff from all over the world.
In KPMG’s own words, “This is a great chance to quiz KPMG firms' professionals - and find out everything you want to know. Find out first hand why it's such a great place to build your career.” Strong sentiment indeed.
We enjoy such openness at a time when recruitment has become a blackbox and it is difficult to make real contacts with hiring professionals within organizations. More so, the Big4 firms have become so big and bureaucratic that reaching the manager who has hiring needs often means meandering through HR complexities.
If this fair works as good as it sounds, KPMG may have a chance to meet thousands, if not tens of thousands, of interested global applicants and enable them to connect with the right folks within the firm. From another viewpoint, this makes KPMG a net savvy recruiter, allowing it to get to candidates without going through the recruiting pipeline.
Clearly, this is a place where the internet’s initial threat of disintermediation is really working in connecting large groups of people on either side to intimately connect with each other.
On our part, we’ll try to visit the fair and provide our impressions, it’s not as exciting as the DNC or the RNC, but much more relevant to your career we believe.
More details on this fair at http://events.unisfair.com/index.jsp?eid=298&seid=29&code=kpmgflash
Subscribe to:
Posts (Atom)
Posts
