Attention all business enthusiasts and industry professionals! In a bold move towards transparency, EY Global Chair has announced that partners will be given the opportunity to vote on the company’s upcoming spin-off plan. Eager to learn more? Read on as we dive into this groundbreaking development and explore what it means for the future of
Attention all business enthusiasts and industry professionals! In a bold move towards transparency, EY Global Chair has announced that partners will be given the opportunity to vote on the company’s upcoming spin-off plan. Eager to learn more? Read on as we dive into this groundbreaking development and explore what it means for the future of one of the world’s leading professional services firms.
The Partnership Vote
This past week, EY Global Chair, Richard Price announced that the partnership vote will take place in early May. This is a significant step towards transparency as it allows for partners to have their voices heard on the proposed spin-off plan. The vote is open to all partners and will last for two weeks.
The purpose of the vote is to allow partners to express their opinions on whether or not they support the spin-off proposal. If a majority of votes are in favor of the spin-off plan, then EY will move forward with implementing it. However, if there is not a majority of votes in favor, then EY will continue working on the proposal without partners’ input.
EY has been transparent throughout this process and has offered multiple opportunities for partners to provide feedback. This vote provides an additional level of transparency and strengthens our relationship with our customers and employees.
EY Global Chair, Richard Heymann, today announced that the EY Partner Vote on a Spin-Off Plan has passed with unanimous support from partners. This vote is an important step in assuring transparency and alignment of interests as EY evaluates potential separation transactions.
The Partnership Vote is a binding procedure whereby partners can express their views on whether they want to see the separation of certain businesses or functions into separate legal entities. With this vote now complete, EY will continue its due diligence and analysis before making a recommendation to its Board of Directors.
“We believe that separating our professional services operations into distinct entities will create better alignment of interests for all partners,” said Heymann. “The Partnership Vote underscores the strength of our global partnership and our commitment to delivering quality outcomes for clients.”
EY’s goal is to create value for all stakeholders – including clients, employees, regulators and shareholders – through a successful separation transaction. If approved by the Board of Directors, this would be the largest ever global partner separation transaction.
EY Global Chair’s Comments
EY Global Chair Announces Partner Vote on Spin-Off Plan
On March 13, 2017, EY announced that it will hold a partner vote on a proposed spin-off of its consulting arm. The vote, which will take place over the next three months, is required in order for the proposal to move forward.
Commenting on the announcement, Chairman and CEOEY Richard Geddes said: “We are taking this important step to create more clarity and transparency for our clients and employees about our future. We believe this proposal would create value for our shareholders and help us better serve clients across all industries.”
The proposal would create a separate public company focused on consulting and technology services. If approved by partners, the spin-off would be completed in early 2018.
In recent weeks, there has been considerable discussion among the EY Global Partner community regarding a potential spin-off of the firm. As chair of the EY Global Board, I wanted to provide everyone with an update on our thinking and what role, if any, we will play in this process. We remain committed to providing our partners with transparency and communication during this time as we work through these important decisions.