EY US Chair Forges Ahead Post Split with Revamped Leadership

Ernst & Young’s US Chair Julie Boland has tapped two of the firm’s top leaders to streamline the firm’s operations as part of a leadership revamp rolled out this week.

John King, outgoing vice-chair for assurance, will serve as an adviser to Boland focused on in finding efficiencies across the 31-country Americas region and Deputy Managing Principal Steve Payne will focus on “simplification efforts,” among other projects, as they step down from their current roles. The firm has pledged to find millions in cost savings over the next year and has already shed 3,000 jobs in the wake of a failed bid to spin off EY’s global consulting practice and much of its tax services.

Boland and the US leadership team pulled their support for the breakup plan in April, delivering a fatal blow to a yearlong effort to restructure EY’s $45 billion global business over concerns related to staffing and resources for the legacy audit practice, which Boland would have led.

Her note that was emailed to the firm’s leaders also included a reminder of the assurance practice’s importance to EY calling it “foundational” to the brand and highlighted the scale of its reach, saying the firm’s audit clients have a $17 trillion market cap globally.

Among other changes, Dante D’Egidio, who has run assurance for the firm’s US eastern region, will succeed King overseeing the firm’s $5 billion US and Americas service which includes its audit and financial accounting practices.

Boland called D’Egidio, who has led audits for Hilton Worldwide Holdings Inc. and Science Applications International Corp., and incoming Professional Practice Vice-Chair Katrina Kimpel “champions of audit quality.” She has tasked them with ensuring the assurance practice continues to evolve and to shepherd ongoing efforts to “reinforce a culture based on ethics and integrity.”

Last June, the US firm paid a record-setting $100 million fine for unchecked cheating on professional ethics tests and other training. EY admitted to the misconduct and responded with disciplinary actions and added training among other steps.

Other leadership picks include Marcelo Bartholo, EY Americas deputy managing principal; Bill Strait, EY Americas vice-chair for finance and operations; and Tony Jordan, EY Americas and US Chief Ethics and Compliance Officer. Jordan has already started in his new role and the rest of the appointments take effect in July.

Boland and Carmine Di Sibio, EY’s global chairman and CEO, face pressure from partners frustrated over the infighting and demise of the the deal and questioning whether either are fit to continue leading the Big Four firm.