EY partners to receive cash, stock if company splits: reports

The Australian Financial Review was advised that a view within the local partners group is that any decision regarding the split will be made by the US partners, with the Australian partners likely to align. This pragmatic assessment included the view that the partners would certainly vote for a split if it meant they received a financial windfall.

A staffer said the details of the leaked proposal showed the split was only for senior partners looking to “make a killing”, and that money was the main motivating factor in the decision-making.

This insider believed that junior partners outside the United States and staff would be worse off if the firm split into an audit arm and a consulting arm. This is despite a detail in the reports indicating that 15% of the shares of an IPO consultancy would be reserved for staff.

Another view was that staff members, especially those about to become partners, would be susceptible to poaching by rival companies and industries in the prolonged uncertainty of any split.

The Financial analysis was informed that the goal is to have a proposal for the business partners to decide on by the end of August. The company has approximately 312,000 people worldwide. The Log the report says a “go or no go” decision will likely be made before July 4, with the split occurring as early as late 2023.