The auditing and consulting firm EY has stopped its planned split. This was announced by the group formerly known as Ernst & Young last night. It was actually planned that the 13,000 partners of the group should vote in April on the separation of the lucrative consulting business. It should then be taken to the stock exchange.
In mid-February, a member of the company’s management told the Reuters news agency that “huge approval” was expected for “Project Everest”. However, there was internal resistance. First, the “Financial Times” reported on the abandonment of the plan.
demand from regulators
With the spin-off announced in September, London-based EY wanted to meet the demands of many regulators, who increasingly fear conflicts of interest when auditors also advise the companies they audit. The partners involved in EY received millions in proceeds from the process.
With its 365,000 employees and a turnover of 45.4 billion dollars (FY 2021/22), EY is one of the “Big Four” of the auditing companies, along with KPMG, Deloitte and PwC, which almost completely share the audit of large, international companies.
