Arising from the resignation of Carmine Di Sibio in the wake of the failure of his plan to break up the accounting firm, Ernst & Young (EY) is shopping for a new Chief Executive Officer, and has listed some of its senior partners as Di Sibio’s replacement.
The six shortlisted candidates include the leader of EY’s Canadian business and the heads of its American consulting and financial services practices, people familiar with the list have revealed.
The long list sets up multiple challenges to the early frontrunner Andy Baldwin, a longtime deputy to Di Sibio.
The race is proceeding against a backdrop of tension within the Big Four firm, where the break-up plan pitted some senior figures in its audit business against those in its consulting arm, which was due to be floated on the US stock market.
Leaders of EY’s US firm, which accounts for 40 per cent of revenue, dissatisfied executives in Europe by nixing the plan in April after $600mn had been spent in preparation.
Di Sibio had hoped that splitting audit and consulting would become a blueprint for the global industry.
EY has begun looking into alternative strategic options, such as selling smaller parts of the business or preparing for a split further in the future, but decisions will ultimately fall to the team installed by a new chief executive.
Di Sibio in June said he would step down next year. The shortlist to replace him was communicated to EY’s 13,000 global partners on a webcast on Thursday, said people familiar with the event.
It followed presentations by a long list of 11 candidates earlier this week in front of a nominations committee, the people said.
Some 300 senior partners around the world will be canvassed on the candidates in a process EY calls “soundings”, but the final decision will be made in a vote of its 18-member global executive committee, with an announcement in November.
Di Sibio will formally hand over the reins at the end of June 2024.
One of the shortlisted contenders, Baldwin, a veteran consultant in EY’s UK business, was an architect of the break-up but has argued since the plan’s collapse that the firm must now take an alternative approach.
A strong challenger is Jad Shimaly, head of EY’s Canadian business, who has been touted by some partners as a compromise candidate who could win support from the US and Europe.
Two US executives are also on the shortlist: Janet Truncale, a Di Sibio ally who runs EY’s business in the Americas serving clients in the financial services sector, and Raj Sharma, head of consulting in the Americas.
Marie-Laure Delarue, the French leader of EY’s global audit business, and Julie Teigland, managing partner for Europe, the Middle East, India and Africa, round out the shortlist.
