The global CEO of EY is set to depart from the firm after his plan to separate its consulting and accountancy divisions fell through.
Carmine Di Sibio, who currently holds the position of global chief executive at the renowned Big Four firm, informed partners on Tuesday of his intention to retire next summer. This decision comes despite an extension granted last year, which saw him staying in the role until June 2025.
The abandonment of EY’s ambitious break-up strategy, known as Project Everest, in April marked a major setback. After months of internal disagreements and opposition from US executives, the proposal was ultimately scrapped. EY’s senior leadership suspended a vote on the project just last month due to a dispute among US partners over the inclusion of the tax division within the auditing business.
Masterminded by Di Sibio, the defunct plan cost the company over $600 million (£476 million) and resulted in bitter infighting.
During the webcast with EY partners on Tuesday, Mr. Di Sibio revealed his plan to retire next year, citing the mandatory retirement age at EY. He expressed his gratitude to the partners, stating, “My tenure as CEO has been thrilling, enlightening, and challenging, but above all, it has been filled with joy and warmth due to the friendship and kindness all of you have shown me.”
“I am proud of the audacious vision we outlined in Project Everest. The courage we displayed has set a new course for the entire industry, although its impact will only become apparent in the years to come. We dared to challenge the status quo, asked probing questions, and demonstrated boldness in our ambitions. Actions like these will ultimately make us a stronger organization. Now, it is time to usher in a new generation of leaders,” he added.
The failed project aimed to publicize EY’s advisory division or sell a partial stake in the firm, which boasts a workforce of 312,000. Such a move would have resulted in hefty payouts for partners, similar to the experiences of Goldman Sachs and Accenture during their respective flotations in 1999 and 2001.
EY proposed the split in response to mounting pressure from regulators worldwide, who expressed concerns about conflicts of interest at the Big Four firms.
Since scrapping the break-up plan, EY has informed its UK staff to brace for a new cost-cutting initiative. US partners were informed that the firm will need to reduce expenses by $500 million following the collapse of the deal.
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