Ernst & Young today announces that its Global Executive and the
Global Advisory Council approved the proposed integration of all of
its 87 country practices in Western and Eastern Europe, the Middle
East, India and Africa into a new EMEIA Area. It also confirmed that
more than 700 partners in the Far East had supported a similar
integration across 15 countries and territories.
The EMEIA Area will operate as a single unit, led by a single
executive team and, where allowed by laws and regulations, be
underscored by formal combinations of practices. The new Area will be
a US$11.2 billion organization with more than 60,000 people. The 3,300
partners of EMEIA will vote on the integration by the end of May. The
new EMEIA Area will be effective from 1 July 2008.
The integration of the Far East Area creates a US$1.2 billion
organization, with more than 20,000 people. The new structure will
also be effective from 1 July 2008.
Mark Otty, currently the head of our UK practice, has been
nominated to be the EMEIA Area Managing Partner, while David Sun and
Jim Hassett were confirmed as Far East co-Area Managing Partners.
Chairman and CEO Jim Turley said: "Ernst & Young has for years had
the most comprehensive and implemented global integration of its
practices. The combinations we are announcing today are bold and
exciting developments that dramatically further this integration. We
are setting a new standard for professional services. Together with
the integration of the 29 countries of our Americas practices, which
we announced in 2006, we remain the most globally integrated
professional services firm."
He added: "At Ernst & Young, our thinking always starts externally
- about the world around us - and about all the potential that exists
everywhere. The moves we announced today reflect the increasingly
global nature of our borderless business environment, which is
changing the expectations of both our clients and our people, and
which requires nothing less than a truly global approach from our
organization. With these changes, I am confident we will provide
greater opportunities for our people to achieve their potential as
well as superior service to our many clients. We will also strengthen
our unique, diverse international culture."
Chief Operating Officer John Ferraro said: "We committed ourselves
to the effective global integration of our business several years ago
and we have created the structures necessary to achieve this. Feedback
from our clients and the market tells us that this is the right
approach. These latest developments in Europe, the Middle East, India
and Africa, and in the Far East, will significantly strengthen our
business, and allow us to best serve our clients in the global
economy."
Jim Turley added: "The European 8th Directive provides a new
regulatory environment to support the closer integration of our
European operations, and this has enabled us to accelerate our
thinking around our globalization plans. EMEIA integration will have
many benefits. Our clients want us to mirror the way they behave in
these markets and to have access to bigger and more experienced teams.
Our people want and expect us to operate across borders and cultures
with the increased client experience, career diversity and mobility
that will bring. And we want to improve our operational effectiveness
to improve our capacity to invest in the development of market leading
services, as well as in the important emerging markets around the
world."
Said John Ferraro: "The Far East integration received the
overwhelming support of the Ernst & Young partners. This integration
is part of our long term investment in Asia´s rapidly growing markets.
By even more closely integrating these practices, we will further
improve our ability to serve the businesses of the Far East, as well
as those global businesses which are taking an increasingly active
presence in many Far East markets, including China. This milestone is
a key building block in responding to the business imperative to
provide seamless, consistent, high-quality client service, worldwide."
"These are significant developments that reflect the fact that our
world is changing rapidly and increasingly acts without boundaries,"
concluded Jim Turley. "I am personally very enthusiastic we are taking
these steps, and from my discussions with clients, regulators and our
people, I believe they share this enthusiasm."
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction
and advisory services. Worldwide, our 130,000 people are united by our
shared values and an unwavering commitment to quality. We make a
difference by helping our people, our clients and our wider
communities achieve potential.
For more information, please visit www.ey.com.
Ernst & Young refers to the global organization of member firms of
Ernst & Young Global Limited, each of which is a separate legal
entity. Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. This news release has
been issued by EYGM Limited, a member of the global Ernst & Young
organization that also does not provide any services to clients.
