Deloitte has overhauled its UK leadership, replacing half of its 16-strong executive team, including the managing partner, in an unexpected reshuffle.
Eight of the accounting firm’s most senior partners are set to leave the management team to make way for six newcomers, according to people familiar with the changes and documents seen by the Financial Times.
Only one of the new appointments is a woman and the reshuffle will reduce the representation of women at the top of Deloitte from 37.5 percent to 28.6 percent.
The shake-up, which was not communicated to staff until the firm contacted the FT on Thursday, should be billed internally as a “refresh” and presented as business as usual, according to two people at Deloitte.
“Professional services firms typically do not overhaul management teams. They’re doing it more slowly,” said one senior recruiter when told of the overhaul.
The shake-up comes despite partners earning an average of more than £1m for the second year running in the 12 months to May – more than their rivals at EY, KPMG and PwC.
The moves come after Deloitte announced that Richard Houston has been re-elected for a second four-year term as CEO of Deloitte’s Europe North and South region, which includes the UK, parts of Europe and the Middle East. He has the power to select the executive team.
The changes were prompted in part by a desire to replace older members of the management team with younger partners who would be young enough to run for CEO at the end of Houston’s second term in 2027. said one of the people at the company.
The most senior of the eight partners leaving the executive team is Stephen Griggs, who took up the newly created role of UK managing partner in September 2020 and who has decided to retire next year.
He will be replaced in June 2023 by Philip Mills, who has led the firm’s global tax and legal practice since 2019.
The other people leaving the executive team, which include the heads of three of Deloitte’s five services, will remain at the firm and have “important” roles, Deloitte said.
Three women to leave UK leadership. Anne-Marie Mali, head of consultancy, is the best-known of the trio, having seen revenue grow by 44 percent since 2019, when she became the first woman to lead the practice.
The changes will reduce the size of the group from 16 to 14. Deloitte said two of the new management team will be from an ethnic minority background. The entire current leadership team is white.
Head of risk and financial advisory services, Andy Morris and Richard Bell, are among those leaving the executive group.
The other new appointments are Rob Cullen, who takes over the consultancy department; Charindra Pathiwille, who will lead the financial advisory services line; and Cindy Chan, who will take over the risk advisory unit.
Nick Turner has been appointed growth managing partner, while Duncan Farrow-Smith has been appointed chief strategy officer.
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