Big Four Accounting Firms and truth

about their Partners

Presentation By: Mayank Shah Roll No. : 491

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What are Big Four Accounting Firms?

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Scooping up or Merging smaller firms

• Deloitte Touche Tohmatsu is an aggregation of companies such as CC Chokshi, SB Billimoria, AF Ferguson, Fraser & Ross, MCA, PC Hansotia and Deloitte Haskins and Sells. • BSR & Co. is an affiliate firm of KPMG• Price Waterhouse, Price Waterhouse & Co, Lovelock &

Lewes, RSM & Co, Dalal & Shah are affiliate firms of PWC.• SR Batliboi & Co, SR Batliboi & Associates are affiliate are

affiliates of EY. EY also took over the India operations of Arthur Andersen.

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Facts and News• The number of partners in the Big Four accounting firms has nearly

doubled to about 1,150 in five years. • KPMG promoted 27 senior executives to the position of partner. This

September, the firm is likely to promote a similar number as partners. • KPMG has also created a separate HR vertical devoted entirely to partners. • PWC has poached many mid-level executives from competitors and made

them partners.• Big Four have seen double-digit growth for most of the past 10 years. • Their combined top line is at around Rs. 11,000 crore growing at about 15-

25 per cent depending on a vertical.

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Who all are Partners?Equity PartnersSenior Directors lured by competitorsDirectors lured by competitorsThe head/s of affiliates or associate firmsMid-level Executives from competitors Other senior executives/ employees

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Are all Partners for real or equal? No

All partners are not equal and neither are they real. Partners, except for equity partners, are all salaried partners. The salaried partners are paid salaries without any contribution from

them into the firm. They are not given any share out of the profits of the firm.They don’t have voting rights for CEO. Other major decisions.

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Need for Salaried Partners1. The necessity of more leaders to head niche areas. 2. Every client wants to only speak to a partner. 3. Becoming a partner being a sole ambition of an employee4. Aspirations of the senior executives5. To stop as many team members as possible from being poached6. To give a career path to employees with high potential7. Unwillingness of partners to contribute Capital

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Positioning of the Employees

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Conclusion• Not all partners are equal• Partner is a fancy post now• All partners except for equity partners are salaried• Authority to partners are not same• Hefty pay-outs to the salaried partners• Voting rights not given• Need of business situation

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Bibliography• Economic Times (online article)• Google.co.in• Quora.com• Financewalk.com• Hierarchystructure.com• Other websites for reference and images

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THANK YOU