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EY Break up Could Net Partners £6m Each

Monday 27th June, 2022

In what could be the biggest change to the Big Four in decades, plans to break up EY's global business, could see partners at the firm in line to receive windfalls worth over £6m each. Plans to split the accountancy firm were leaked last month, which would see the audit and advisory operations, separate into two separate firms.

EY plans to come to a decision before the 4th July, after news of the planned split was leaked to the Wall Street Journal last month, following meetings between EY executives and bankers from JP Morgan and Goldman Sachs on the 17th and 18th May.

The plans come as a means of escaping the conflict of interest that have plagued the Big Four for years, amid mounting public and regulatory scrutiny over the potential conflicts between those tasked with auditing major companies and those seeking to sell advice to those same firms.

A split would follow in the footsteps of Accenture, which split off from auditor Arthur Andersen at the turn of the millennium. Former “Big Five” auditor Arthur Andersen later collapsed under the weight of the Enron scandal, as Accenture continues to thrive.

The planned split comes as EY faces multi-billion-dollar lawsuits over its audits of Abu Dhabi healthcare provider NMC Health and German payments processor Wirecard.

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