In comments to Financial Times, EY Global Chairman and CEO Carmine Di Sibio says splitting consulting and audit “would win its consulting division up to $10bn in extra fees by liberating it from conflicts of interest that block partnerships with the world’s largest tech groups.” Those consulting fees are as yet out of EY’s reach “because conflicts rules restrict it from working alongside the likes of Amazon or Salesforce.”
The split would also benefit the audit side as independence from consulting would allow the audit business to expand more quickly, he said. This is presumably a priority given EY’s recent $1 billion investment in next-gen audit technology.
A $10 billion bump would come close to doubling what consulting is bringing in now. Here’s the breakdown of EY’s $40 billion 2021 revenue by service line:
- Audit and assurance: $13.6 billion (up 5.8% from 2020)
- Consulting: $11.1 billion (up 6.4% from 2020)
- Tax: $10.5 billion
- Strategy and transactions: $4.8 billion
EY boss targets $10bn boost from Silicon Valley tie-ups after break-up [Financial Times]
The post EY Is Leaving $10 Billion in Consulting Fees On the Table If It Doesn’t Split, Says Global Chairman Carmine Di Sibio appeared first on Going Concern.
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