EY extends UK chief’s mandate as top overhauled team

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EY extended the tenure of its UK boss Hywel Ball, allowing him to work beyond the firm’s statutory retirement age of 60 and launching a takedown of its executive leadership just weeks after a plan to split his business failed global in two.

Ball’s future had been called into question after his support for EY’s failed attempt to split its audit and consulting divisions globally. The UK board has agreed to extend his mandate ahead of the plan, codenamed Project Everest, unveiled last monthcompany people told the Financial Times.

EY he declined to confirm the extension period, and his council has the power to extend Ball’s stay again in the future. Ball, who turned 60 in August, is normally expected to retire at the end of his current financial year on June 30, under EY’s partnership agreement.

Instead, after nearly three years in the role, Ball announced sweeping management changes last week, telling partners he would cut the executive leadership team from 13 to eight. Two women who opposed him to lead the company in 2020 are among those leaving the team.

One person familiar with the changes said they signaled the “next phase” of EY’s UK strategy, with another adding there was no sign of Ball heading for the exit.

Unlike his British counterparts at the other Big Four firms, Ball’s appointment was not subject to a specific term. However, a long tenure in the top post would come as a surprise to some at EY, where many believed he would have a relatively short tenure when he was appointed in 2020, former partners and staff said.

The former head of audit was seen as a safe pair of hands to guide EY through regulatory upheavals such as the UK accounting watchdog has been pushing companies to improve their auditing and reduce conflicts of interest, they said.

Ball also had the backing of EY’s global heads, who played a direct role in his appointment. But their future has been called into question by the implosion of Project Everest. Global President Carmine Di Sibio’s term was extended beyond the usual retirement age before the Everest collapse so he could see the project through to its conclusion.

In a note to partners sent last week and seen by the FT, Ball signaled the UK management review was a “start” and one of those familiar with the matter said he “will make further changes”.

Ball internally highlighted the British firm’s strong financial performance during his tenure, telling partners to expect “strong double-digit growth” in his current financial year.

In his note, he said the partners, who have earned a average of £803,000 last year, he wanted to “simplify the business . . . Enabling partners more time to serve our customers and drive profitable growth.”

Last month he and financial services chief Anna Anthony pledged to partners to cut costs and tackle the “inefficiencies”admitting that Everest’s bankruptcy risked damaging EY’s brand.

The changes are likely to be welcomed by some partners, who have long complained about the number of partners in internal management positions who are not generating income working for clients. “You work hard every day for a group of people who don’t do much,” said a former partner.

The most high-profile departures from the executive team will be customer service chief Alison Kay and chief operating officer Lynn Rattigan.

Both women have lost to Ball in the race to succeed Steve Varley as senior partner in 2020, people familiar with the contest said.

Kay was seen as a potential successor to Ball, being thrust into a powerful and newly created role after failing to secure the top job. He will move on to a role in EY EMEIA.

The legal, talent and risk chiefs will be among those leaving the executive team and instead report to the junior executive every three months. Steve Ivermee, Head of UK Strategy and Transactions, one of EY’s four service lines, will be replaced by early July.

All people who leave the management team will remain in the company.

EY said “partner mandates are routinely extended in the UK and across the global network for a variety of reasons, including client delivery and leadership responsibilities.” About 10 partners each year were allowed to continue working after they reached the age of 60, one of the company’s people said.