John Sams faces serious challenges as new KPMG CEO in Australia
Under fire Big Four professional services firm KPMG has appointed former financial chief John Sams as its new CEO for Australia, replacing the ousted Andrew Yates and interim Stan Stavros.
John Sams has been with KPMG for more than two decades, originally joining the firm as a graduate in the UK in 2003 before transferring to Australia three years on. He was appointed chief financial officer last year, having previously led infrastructure & transactions advisory.
Sams, who had also been overseeing Eileen Hoggett’s COO duties, replaces fallen former chief executive Andrew Yates, who after five years in the top job has departed the firm alongside Hoggett and former chair Martin Sheppard in the wake of its private client data sharing scandal.
“The board believes that John has the strong attributes required to be the firm’s successful leader – including agility, courage, and integrity,” said Sheppard’s ‘replacement’ Michael Ebeid. “John has a clear mandate from the board to strengthen leadership and culture, and improve confidence with our people, our clients, regulators, the government, and parliament.”
Things remain far from rosy at KPMG however. Sams has already had to prepare the partnership for huge upcoming pay-cuts, and will now have to oversee possibly hundreds of employee axings. Moreover, there will be further Senate grillings to contend with, while media reports speak of ongoing discontent and even anger among the partnership ranks over his appointment.
One aspect is in picking another chief from within – with Sams having beaten out consulting boss Brad Miller and head of tax & legal Ben Travers – but the greater concern is that some partners are said to be questioning the legitimacy of the appointment, and even seeking legal advice, in that Ebeid’s selection as chair has yet to be ratified, nor the changes to the firm’s charter to allow it.
“I do not underestimate the task ahead but commit to our clients and people that I am prepared to be courageous, take the tough decisions, and lead the changes we need to set us on the right path,” Sams said, again acknowledging the firm’s recent failings. “We have serious work to do on our culture, our leadership, and our governance, and it will take resolve and endurance.”
Sams continued (unfortunately echoing an infamous EFC slogan); “Despite everything we have faced, I’m optimistic about the future, otherwise I would never have taken on this role. While the challenges are real, so too are our strengths, and I am equally clear about the opportunities to strengthen KPMG for the future. I will lead the changes that will make us better, whatever that takes.”
