KPMG reveals partnership deed, in a big four first

afr.com:

KPMG Australia has taken the unprecedented step of allowing its partnership deed to be published, revealing partners can be given a one-time bonus payment worth up to a year’s income when they retire.

The firm provided the “KPMG Australia Partnership Agreement 2022” to the Senate committee that is examining consulting, without requesting the document be made private. Its publication by the committee on Friday marks the first time in the local history of the big-four consulting firms that this usually tightly held material has been released publicly.

Greens senator Barbara Pocock criticised leaders of Deloitte and EY earlier in the week for failing to provide similar documents to the committee when asked. PwC, which triggered the inquiry with its tax leaks scandal, has provided its agreement but asked the committee to keep it confidential. KPMG’s move will put pressure on Deloitte and EY to follow suit.

Representatives from Deloitte and EY defended their decision during public committee hearings on Monday and Tuesday.

Deloitte Australia chairman Tom Imbesi told the inquiry the firm had not provided its partnership agreement because it was “commercially sensitive”; EY’s David Larocca said he did not want “competitors to see” the details of its deed.

KPMG’s 42-page document outlines the rules governing how the partnership selects its leaders, distributes profits to partners, forces them into “involuntary retirement”, and their confidentiality obligations. The firm has yet to provide any partner pay information.

The agreement states partners have “important legal, fiduciary and ethical obligations to each other and the firm” to abide by its values, and use their “best skill and endeavour” when carrying out their work.

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