Ernst & Young CEO Expects $10B From Tech Giant Contracts After Historical Business Split: Report

Ernst & Young CEO Expects $10B From Tech Giant Contracts After Historical Business Split: Report
  • Ernst & Young's global CEO said that the business split would win its consulting division as much as $10 billion in extra fees by liberating it from conflicts of curiosity that block partnerships with the world's largest tech teams, Financial Times writes.
  • In an interview with the Financial Times, EY's Carmine Di Sibio mentioned that the agency's place within the tech audit market was "both a blessing and a curse."
  • The report also mentioned that the pressure is building on the historic split as its leaders meet in New York this week and its opponents proceed with their existing model of combined audit and consulting.
  • Related: PwC Rejects Audit & Consulting Split, Forecasts Record Annual Revenue Of $50B
  • EY dominates the auditing of several US tech giants, including Amazon.com Inc AMZAlphabet Inc GOOGOracle Corporation ORCLSalesforce Inc CRM, and Workday Inc WDAY.
  • While its power was constructive for the audit enterprise, Di Sibio mentioned this was additionally a "negative." As a result, conflict-of-interest rules prevented them from entering alliances to work alongside some of the world's biggest technology companies on projects for their other clients.
  • He said that splitting the business ahead of a capital markets transaction was "plan A," adding that an IPO would unlikely happen before autumn 2023 if the firm opted for a public listing.
  • Photo via Wikimedia Commons

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