Thanks to the Deloitte spy who sent us the following comments over the weekend:

Deloitte Private in Sydney has lost another 2 audit seniors. The rate at which Deloitte Private loses audit seniors is phenominal and partners, including cluster lead, Michael Kaplan, are living in a sense of denial in which they state that ”nothing is wrong”. Could it be that the entire Deloitte culture says lets screw staff with all we’ve got for the enrichment of the partner group? I love how Giam Swiegers, CEO, defends his and the partner greed by referring to the fact that at Deloitte people are motivated by being engaged, not being paid bonuses. Well then why do the partners get bonuses? Recent access to a file that should probably have been confidential reveals that non equity partners bonus in “times of having to monitor costs” was around $60k pa. On top of an average salary of $240k makes a sweet $300k per year (I emphasise that this is relatively newly appointed partners and is only the base). No wonder a new audit partner was able to splash out on an expensive home in Mosman. So what do the other staff get? Well lets see, Brand new grads - $50k pa Exp analysts (pretty much doing the job of a senior without the title - $55k pa, a measely $5k more pa. Audit senior - about $60k pa Manager - starting on around $85k And then they wonder why the audit seniors are leaving the firm!!

Are senior staff walking out on your firm? Are partners giving themselves bonuses while juniors starve?

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Ever the unpopular leader amongst juniors, Deloitte Chief Executive partner Giam Swiergers has apparently reached a new nadir, though this time with vacation clerks.

Giam, elected only days ago to continue in his role as head of Deloitte, has apparently made the very first cost-cut of his new term. And it is a very merry cost cut!

This from an anonymous Deloitte spy yesterday:

Hi FS, 

Just some news in regarding the vacationers at Deloitte. Apparently Deloitte is too cash strapped (or stingy) to invite them to the Christmas party. Good thing the vaccies are learning this lesson now, because when they start with the firm Uncle Giam will be too stingy to give them payrises, bonuses and many other benefits too.

In response to our articles profiling the CA policies of Big4 accounting firms, first at PwC and then at Ernst & Young, we received the following anonymous tip from a Deloitte spy:

Look Deloitte is not too far behind. Experienced analysts only earn $2k more a year than grads. Also, if you fail 1 subject you get a warning, 2 subjects a written warning and 3… you’re fired!

You’ll recall that at Ernst & Young, the following was sent to us:

I’d like to mention that Ernst & Young also has the same policy to PwC in terms of failing 2 CA subjects and you’re out. But on top of that, if we fail a subject we owe E&Y $1k (per subject) for study assistance /time off etc. Can you believe it? We already work ridiculous hours to get through the piles of work AND we also have the added pressure of having to study and pass our CA subjects otherwise we could lose our jobs AND owe E&Y $1k! Theres really no such thing as “study assistance” because they’re gonna get their moneys worth anyway. Watch those fancy grad brochures… they are empty promises.

Meanwhile, at PWC:

… There are a lot of extremely pissed of employees at PwC feeling a little bit like indentured slaves that get dictated everything. [First] a … pay cut to take ‘flexible’ leave. [Second]That there is no overtime system anymore (not that TOIL was awesome, but at least it was something). now CA. This firm just does not stop - graduates stay away and make sure you ask questions about how long your are locked in for if you want to do CA! PwC can now fire you if you fail 2 subjects. It’s all under the ‘policy’. Payraises were so bad this year that 2nd year accountants are only being paid $1k more than 1st years.

Does anyone care to send us the KPMG policy (that way we’ll have each of the Big4)?

 Send the Firm Spy your news and views!

Simply exceptional Deloitte firm spying has enabled us to break yet another major story today: the disagreeably garish Giam Swiegers has been given the nod for another term.

ill catch the bastards!

Wanker Flamboyant shirts and all!

6 dissident partners in Deloitte? Are you listening KPMG, EY and PWC? And if we are doing so great, why are pay reviews and promotions still on an icy lake? ====== attached message ====== Greetings, This is a message to the whole of the firm on the results of the CEO Succession Ballot. I have advised the partners by voicemail earlier today. Deloitte is certainly different. In uncertain times we have maintained our determination to meet our plan and the overwhelming endorsement by the partners of a third term for our CEO Giam Swiegers just demonstrates the alignment and confidence of this firm. The results of the 379 votes cast in the ballot as to whether the CEO should get a third term are: YES : 373 NO : 2 ABSTAIN : 4 This is also a real credit to confidence in our CEO as we come to the end of our 2010 Plan and move to our 2015 Plan. It also goes beyond the strategic to the range of other initiatives that make us different such as our people program and the Inspiring Women Initiative. Regards Wayne Goss Chairman

Thanks for the update Wayne. Any naming and shaming of the dissidents? Giam’s iron-fisted ruling would soon see them de-equitised, one would have thought.

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We reported several weeks ago the technonological indiosyncracy of Deloitte - “send the punters voicemails, that way a bad news email cant be flicked to media”.

This is excellent in theory but in practice, if you’ve got a catalogue of disgruntled employees feverishly transcribing the contents of the voicemail, then, bad news can still travel fast.

Take, for example, the horrible news that a couple of Deloitte workers were reportedly sacked for organising a weekend bag of sniff over a Deloitte-owned communication device.

We received the following message from an anonymous Deloitte spy a few days ago:

Hi, I am a new follower of firmspy and this is my first contribution. My latest news is about Deloitte. Recently, we received two voicemails from Keith Skinner, CFO, (both on Friday afternoons) that the current pay freeze would remain in place at December but normal promotions would still occur as per normal. However, some service lines have decided to deliberately misinterpret this policy and have ruled out promotions altogether. The firm and partners have played on the uncertainty around this issue by refusing to announce which policy is correct. Some partners’ response to the issue has been whether the employees preferred redundancies or a promotion? Tough choice? Not really!

So what’s the story Skinner? Get the disagreeably garish Giam Swiegers on the phione! It’s not the old trick of increasing a worker’s charge-out rate (look, he’s now a fifth year!) but failing to increase the same worker’s wage, is it?! It is probably unsurprising that Giam and the team can afford a half million dollar partnership summit.

Send the Firm Spy your news and views.

Thanks to the anonymous Deloitte spy who offered us the following comments yesterday:

What I find interesting in all this is that in the midst of a global financial crisis that requires huge cost cutting measures, the partner group, approx 450, all went to the Gold Coast for the annual conference. The partners in our group couldnt help run around like school children to see who was staying at which hotel. Names such Versace were used. We looked up the cost and you are looking at around $1,000 per night per person. Given that they probably got a bulk discount, lets reduce this to $600 - 2 nights x 450 = $540,000. So whats that again I hear about a global financial crisis?? More like a global gain at Deloitte at the expense of their employees. I am not sure how they get to be an employer of choice!!

We’re not sure either. Are the partners at your firm sacking staff and then having lavish junkets? Let the Firm Spy know first.

Send the Firm Spy your news and views!

Probably the Firm Spy’s least favourite Big4 accounting-firm partner, Deloitte Chief Executive Giam Swiegers, has apparently dealt another cruel blow to already disillusioned staff.

begin your downward spiral in Giams shirt!

But before we delve into the subject matter of the “cruel blow”, let’s first talk about the means through which it was delivered. Giam and Deloitte crew have masterminded a very innovative means to “keep staff informed”. Through a unique messenging service, Giam and the partnership are able to disseminate firm news without resort to the traditional email. Once the voicemail is listened to, it is deleted.

The fantastic thing about this system is that it cannot be flicked onto, say, the Firm Spy; unless, of course, the Firm Spy has an insider diligently transcribing what is said with pen and paper. Does anyone recall the Deloitte staff allegedly fired for lining-up a few bags of weekend sniff?

Today, keeping alive his/her proud history of proud firm spying, we today thank our busy, anonymous Deloitte spy for transcribing the following “message” apparently sent to staff last Friday:

FS,
We received a voicemail message recently regarding the current ‘recovery’ from the GFC. Apparently (after significant revenue growth from previous years, and multiple partner payrises) the recovery is not yet being seen in an increase in fees/revenue at Deloitte. As such the partnership group will be maintaining the current cost cutting measures which include no promotions, no payrises and no corporate hospitality. The voicemail seemed to indicate that this may be maintained for the forseeable future…We received the voicemail on a Friday afternoon. Amongst a slew of other voicemails announcing significant wins…

The announcement came one day after the BRW (1/10) reported the following:

One of the hardest tasks for Giam Swiegers as chief executive at Deloitte this year has been to keep everyone upbeat. “If you don’t then people can go into a downwards spiral,” he says. Staying positive is a big part of being able to keep others positive. Swiegers describes his optimism as “a combination of personality and the fact that I am surronded by several other senior executives who are also naturally optimistic”.

Giam makes no mention of his monumental paycheck in enlightening us as to why he is such a tremendously optimistic fellow. One presumes that given apparently his voracious appetite for wearing blue shirts with a white collar and cuffs, a disagreeably garish wardrobe assists optimism too.

Is your wardrobe on a “downwards spiral”?

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Rather than follow our ordinary protocol of reporting the rumours and waiting for the journos to approach the firm for an official comment, a lack of progress with the Deloitte Drug Deals post forced the Firm Spy’s hand.

i just asked him to get me a cold drink, boss!!

Yes, a member of the Firm Spy glitterati placed an anonymous phone call last night to the brusque Deloitte spokeswoman Vessa Playfair.

• Attempt 1 - call terminated;
• Attempt 2 - call terminated;
• Attempt 3 - call answered with the following phrase ‘can you please hold’. Vessa then continued a muted conversation with someone, not waiting for confirmation that we were prepared to hold. But we waited. And waited. After what seemed like an eternity, the Firm Spy then received the blessing of an audience with Ms Playfair.

We asked Vessa if she was able to give the Firm Spy a comment in relation to our story about sackings rumoured to have occurred because several workers used Deloitte communication equipment to organise a drug deal.

Crack out the rack!

Vessa confirmed that she had seen our story but said she would “need to check with the CEO before making any comment… and would email tomorrow”. We then digressed and Vessa confessed that she is obsessed a fan of the Firm Spy - she subscribes to our weekly newsletter!

We checked our inbox last night and true to her word, an email entitled ‘Deloitte Response’ from Vessa awaited. It noted the following:

Unfortunately Deloitte’s response to your query is no comment.

Regardsvessa [sic]

So where does this leave us? Well, there was no request to take out post down, nor a request for any corrections.

Has the Firm Spy just broken its first gossip NEWS story?! You decide.

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an undisclosed number of staff were recently sacked for organising drug deals on Deloitte’s premises.

got any sniff?

Monday’s voicemail [said]… that Deloitte communication equipment was used for the purposes of organising the [drug] deal, and from all accounts it took place on Deloitte premises. I can’t remember if … a few or two [employees were sacked], but I don’t think it was more than 3 …This has all been followed up by a new drug and alcohol policy distributed throughout the firm from the partnership this week.

Restive Deloitte workers threatening Toadfish-esque delinquency appear to have galvanised Giam Swiegers to offer a belated response to the firm’s double digit growth. Pictured in yet another flamboyant corporate outfit, Swiegers lamented in BRW (25/06) that the11% growth in revenue was the product of a ‘difficult’ year.

Deloitte partners give their profit figures the thumbs up

We’re a professional services firm and if we lose a month there’s no stock that we can sell at a discount

So if a month was ‘lost’, would revenue growth instead have been, say, 10% rather than 11%? Fantastic analogy, Giam, but what about the fustian nonsense that Deloitte should earn the right to grow?

[A] single statement that I heard Mehrdad Baghai utter over dinner, [that] “companies have to earn the right to grow”… resonated very strongly with me, as I felt that, in the past, we had put too much emphasis on achieving growth at the expense of profits…We are taking a much more granular approach to how we pursue growth opportunities in our business compared to what we were doing previously.  That is reflected in our revenue and profit growth – basically, our profits are now growing at twice the rate of our revenues.

Profits growing at double the rate of the 11% revenue growth? That’s a massive 22% rise in partner profit! Hard to justify when senior staff are paid peanuts and everyone else is subject to a pay freeze.

If Deloitte kept on a few more of the workers who are rumoured to have been managed-out, and consequently ‘lost a month’ or two, then in our view the firm might more readily contend that it has ‘earned’ the right to grow. But to freeze pay, reportedly cut learning and development budgets and allegedly manage-out many workers does not, in our view, entitle Deloitte partners to claim that they “earned” 22% profit growth in the sense suggested by business commentator Mehrdad Baghai.

Do you think Deloitte partners have “earned” a massive jump in profits?  Send the Firm Spy your news and views!