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EY has decided to shelve a recent vote on splitting the firm’s consulting and accountancy arms after backlash from its partners, The Telegraph has reported.
The decision reportedly comes after a meeting of the firm’s US partners on Wednesday, according to The Telegraph, with the company’s UK partners due to be updated today (9 March).
While voting rules vary by country, in the UK the firm is required to persuade 75% of partners in favour of the plan. Leadership has reportedly pushed the vote back a number of times, but was expected to ballot its partners in April or May.
The plan to split up the firm would reportedly allow EY to publicly list its advisory division or sell a partial stake, which would result in a huge payout for its partners.
Regulators worldwide have already expressed their concerns surrounding conflicts of interest at the Big Four firm.
The firm has already been forced to start ring-fencing its audit and consulting arms within the UK to reduce conflicts of interest, while the FRC has given the firm until 2024 to operationally split its audit business from the rest of its advisory businesses.
An EY spokesman told The Telegraph: “As part of our deliberation and due diligence in connection with the proposed transaction, we are engaging in a dialogue with the largest EY country member firms to determine the final shape of the transaction.
“This transaction is complex and will be the roadmap for re-shaping the profession, so it is important we get this right. We remain committed to the strategic rationale that underpins Project Everest and believe that a deal can and should be done.”
