It’s a fact of life in the Big Four: you are there to become a partner. This expectation may not be explicit in Big Four culture, but the undercurrent is undeniable. If your every decision is not focused on becoming a “member of the firm”, your career is in perpetual jeopardy. The whole reason for your being is to attain that status.
The mystique of the partnership is evaporating, and it could change the character and composition of the Big Four fundamentally. Yes, Mr. Dylan, the times, they are a-changing’. Anecdotally, more and more senior managers talk quietly – never publicly – about what their next moves would be. Those illicit conversations occurred in hushed tones away from the office – often emerging from frank advice offered to more junior staff members.
But, where do you go?
Many senior managers are considering VP and C-level positions instead of shooting for the partnership. Citing lifestyle desires (i.e. getting off the road), earning potential, and less politically charged environments, even top-performing senior managers are exploring careers outside the Big Four.
Aside from these internal pressures, up-and-comers clearly have concerns about the resilience – and costs – of the partnership structure. Once upon a time, the partnership buy-in was considered a pristine investment opportunity. The past few years, though, have called this perception into question.
It all started with Enron.
Many of the consultants and accountants in our community are still in pain from the collapse of Andersen – especially the ex-Andersen folks who have sought refuge at the remaining Big Four. Professionals who worked at Andersen, especially former partners, are acutely aware of the risks inherent in buying into the partnership. New partners, with fewer than five years as members of Andersen, were brutalized financially. Their buy-in loans were collateralized with their partnership units. The collapse of Andersen led to a negative equity situation for them; partners owed hundreds of thousands of dollars and could not divest their units to repay the loans.
A similar fear rippled through KPMG, recently. Under investigation for selling abusive tax shelters, KPMG settled with the Justice Department. The settlement included a fine of $456 million. While KPMG avoided the fate of Andersen, the resulting fine equates to around $300 thousand for each of KPMG’s 1,600 partners.
The declining interest in firm membership is supported by potential changes in firm organization. Accenture and BearingPoint have forsaken the partnership model, and both now trade on public markets. Doubts as to the protections of the limited liability partnership model are causing the Big Four to consider incorporation – instead of partnership.
Once recognized as an elite club in the accounting and consulting industries, the major partnerships are losing their mystique. The firms themselves continue to provide the best services available on the market, but the firms themselves are undergoing a fundamental shift. Every associate used to hope to grow up to become a partner. Senior managers could taste it – and would think of nothing else.
The Big Four’s preferred structure is under attack from the outside. Once considered an almost risk-free investment, we have learned from Andersen and KPMG the contrary. This investment risk is magnified by the erosion of protections offered by the LLP structure. Greener pastures lure talent from the partnership while the legal system lays siege to this venerable institution.
Related Articles
Data Recovery From Laptops
By: Kavita | 25/02/2008 | Data Recovery
A lot of important data is being stored on laptops today. Laptop use has increased significantly in recent years. Increased demands for portability and convenience have been envisioned in this mobile technology.
Choosing a Business Tax Service
By: Manbeer Singh | 01/03/2008 | Business
There are a number of ways that you can find tax services companies. The yellow pages is a good place to start for companies in your area but, depending on where you live, the list of names may be extremely long. It is a good idea to ask your friends, colleagues and business partners to recommend the tax services that they have found helpful and efficient in the past. Then you can call the tax services professionals that you have on your list and discuss your requirements.
Newsbytes From the World Wide Web
By: kamal | 14/03/2008 | Online Education
Google's free desktop search utility made it out of the "beta" stage and users can now download a finished 1.0 version from http://desktop.google.com for free.
What Tablet Pcs Can Do for You
By: Tarsem Singh | 17/03/2008 | Online Education
Tablet PCs are great. If you are a mobile person, and you have never considered getting a tablet PC in the past, now is as good a time as any to start checking them out - the technology is cutting-edge, the usability is superb, and prices are starting to drop.
Where Do All These Internet Marketing 'experts' Come From?
By: Rajkamta | 17/03/2008 | Education
As I scan my inbox, on a daily basis I have offers to improve the quality of my site, create new catchy logos, and increase traffic through every conceivable method -- but who makes these guys the experts?
By: | 31/12/1969 |
Improving our Landscape Images
By: Sudhir | 12/01/2008 | Education
Landscape photography :- Its can be a challenge, but with the right composition and good natural light it can be made a bit easier. In landscape photography it is very important to take care with composition. A normal scene can be transformed by paying close attention to detail. Composition is all about how you arrange the elements in front of you.
Here are a few ideas in which you may find useful
i) Lead with Lines
ii) Foreground Interest
iii) Natural frames
We don’t have to stick to many
Network Monitoring for Serious Ecommerce
By: anjali | 26/02/2008 | Networking
In the real world, businesses come in every size, from self-employed entrepreneurs like me to mega malls like Wal-Mart.
On the Internet, companies come in every size, too, from a stand-alone eBook sales page with webmaster and owner all in one, to 300 pound gorilla like Amazon, with over a million pages requiring the entire population of a small country to serve as webmaster.
Latest Education Articles
Secured and Unsecured Student Loan Refinancing Options
By: Adam Boulton | 01/12/2008
Refinancing student loan can be done either in secured or unsecured manner. Read on to know which one will suit your requirements the best way.
Online Student Loan Consolidation Methods
By: Adam Boulton | 01/12/2008
Now it is possible to consolidate student loans online also and it offers the advantage of researching and finding the best rates among all programs. This article discusses how to find the right method for student loan consolidation.
Finding Suitable Student Loan Offers
By: Adam Boulton | 01/12/2008
There are various types of student loans available and here is an expert’s guidance for students to choose the right loan offer for them.
Advantages of Private Student Loans
By: Adam Boulton | 01/12/2008
The greatest advantage of private student loans is that they are quite uncomplicated and are finalized in a matter of few days. Read on to learn how to get a private student loan at ease.
Federal Student Loan Qualification
By: Adam Boulton | 01/12/2008
To qualify for a federal student loan, the student has to be enrolled at least half time in college. Here is an expert’s advice to avail of a federal student loan.
Bad Credit Student Loans for Those With High Earning Potential
By: Adam Boulton | 01/12/2008
Even private lenders offer bad credit student loans to students who have a high earning potential. Here are is guidance for obtaining student loans by those with bad credit history.
Refrigeration Training – Does it Have Good Career Opportunities?
By: Abby Reid | 01/12/2008
With the economic slowdown and the frequent job cuts by major companies, everyone is concerned about their career. The fact is that people who have undergone some special training courses can survive this tough period and race towards a promising career and a better tomorrow. Therefore, if you haven’t done any training courses, it’s high time to do one today. When it comes to training courses, there are countless numbers of them available today. However, most of the training programs fail to gui
Hiring a Good Quality Dui Lawyer
By: Alien | 01/12/2008
A "drunk driving" or DUI commonly known as driving under the influence offense is an exclusive state. Unlike the majority of additional unlawful cases, you have to counter together both the DMV laws and the conventional court actions. DMV stands for Department of Motor Vehicles.
More from sunil sharma
Affiliate Programs... a not That Easy Start to Your Own Online
By: sunil sharma | 25/03/2008 | Business
"Where is all the help I'm supposed to get. I have been buying ezine and classified ad builders and signing up for Echecks and Virtual credit cards. In the meantime I have no business and no ads set up. When does all this happen? Let's go here. I spent all day on this. I'm running out of time."
12 Tips for a Successful Affiliate Program
By: sunil sharma | 25/03/2008 | Home Business
1. Look around at other competing businesses that offer affiliate programs, and think of ways that you can make your
affiliate program more attractive.
6 More Free Steps to Making Money Online
By: sunil sharma | 21/03/2008 | Business Ideas
If you read my previous article you will know that the goal of these articles is to teach you ways to get started making money online without having to spend any money.
5 Questions to Ask Before Purchasing a Book Online
By: sunil sharma | 21/03/2008 | Article Marketing
What is it you want to order?
Have a clear idea of what you want to order. Do you want to browse through a category, or do you want to read a particular author or do you know the name of the book itself.
How to Select a Great Topic for Your Book or Ebook Part 4 of 5
By: sunil sharma | 21/03/2008 | Article Marketing
For part four of this discussion, we'll be taking a look at some specific topics you may wish to explore...
The Three "questions" of Science Fiction
By: sunil sharma | 20/03/2008 | Copywriting
There is a great deal of misunderstanding about what that particular branch of literature called “Science Fiction” actually consists of. Is it space-ships and monsters? Time machines? Galactic empires? Well, it’s all of those things, and often none of them.
Steps to a Writing an Effective Press Releases
By: sunil sharma | 20/03/2008 | Writing
Want to get the most media attention and spotlight for your business? Then the first place to start is with a GREAT press release. Now I can almost see half of you leaving now, dreading the thought of having to write one of these. But wait!! I’m going to show you easy methods to make your press release work for you and get the attention it deserves. Ready? Let’s go.
The World's Best Pickles
By: sunil sharma | 19/03/2008 | Cooking Tips
I knew they were the world’s best pickles the moment I tasted one. That first taste took place around 1950, and I’ve tasted a lot of pickles since, am a pickle hound in fact, but I’ve never come across anything else as good.
Education 
