‘Completely unsatisfactory’: EY’s disclosure worse than PwC’s

afr.com:

Greens senator Barbara Pocock has slammed EY for its lack of disclosure to the Senate inquiry examining consultants.

EY, like KPMG and Deloitte, did not provide its partnership deed or details about partner pay as requested by the committee. In contrast, PwC provided its deed (which it requested be kept private) and a breakdown of partner pay at the firm.

A frustrated Senator Pocock asked EY leader David Larocca first asked why the firm had not provided its partnership deed.

EY Oceania boss David Larocca noted that supplying the deed would put the firm “in a position that is anti-competitive”. Martin Ollman

“You distinguish yourself from PwC and you’re telling us you’re different and that you are better. …[we have asked for the firm’s] partnership deed, which you have not supplied to us. We asked for earnings data for partners, you have decided not to supply that to us.”

Mr Larocca defended the decision.

“Our partnership agreement contains things like arrangements for partners leaving the firm, for example, when they choose to join a competitor, restraint arrangements and other things that I’m just not prepared for our competitors to see,” he said.

When Senator Pocock suggested the firm provide the deed in a redacted format, Mr Larocca said that the firm had been “responding to the question: that was to provide the partnership deed”.

Mr Larocca then added he would take the request on notice but noted supplying the deed would put the firm “in a position that is anti-competitive”.

He also provided some data about the firm’s partner pay, including his own pay.

“So our average partner income is around $950,000 … The second thing I’m disclosing today is my income. So in financial year 2022, my income was $2.8 million,” he