Scyne Advisory takes shape with mass partner sign up and territory staked

Incoming public sector consultancy Scyne Advisory is starting to take shape after having successfully signed up 117 more PwC partners, while the two firms have also further staked out their domains.

PwC’s public sector consulting breakaway Scyne Advisory has now signed up 117 of the Big Four firm’s partners – slightly short of the 132 initially flagged but enough to cross its predetermined operating threshold of 100 – with the upstart now looking to fill out its staff ranks.

According to the AFR, Scyne has since put a formal offer to approximately 1,500 PwC employees, backed by a $100 million investment from purchaser Allegro.

The publication further notes that the partners who have committed to joining Scyne will receive a salary commensurate with what they have received at PwC, but under a base pay system with equity and possible bonuses in the manner of a corporate executive as opposed to the profit-sharing model employed by consulting partnerships. The contract offers follow a period of vetting under the lead of former federal court judge Andrew Greenwood.

According to reports, the partners crossing to Scyne will remain with PwC until the sales deal is formally completed, which is expected to be at the end of September and also happens to coincide with the slated date that former Telstra CEO Ziggy Switkowski will report back on his internal review into PwC’s government tax leak scandal. The wantaway partners will give up access to PwC’s once generous ongoing retired partner payments.

As it continues in its efforts to appease the government and demonstrate a responsible governance model, the emerging firm has also decreed its own cooling off period for future employees joining from the public sector, including an 18 month exclusion for former government ministers from working in the same portfolio area, such as with former defence minister Christopher Pyne’s move to EY. Regular public servants will also have to wait one year.

While Scyne is yet to lock in a permanent leader (former PwC Consulting partner Richard Gwilym continues as acting chief) a number of other operating elements are also taking shape. The agreement between PwC and Allegro will see Scyne offer services to public sector and state and federal government clients alone – in the areas of health, infrastructure, defence and risk advisory – and steer clear of private and listed companies.

As per the agreed ‘perimeter’, PwC will meanwhile refrain from any further government sector advisory from the point in time that its existing such contracts expire or are transferred across to Scyne, with all activities to have ceased within a year. PwC will also be prevented from working with public financial corporations such as the Reserve Bank, effectively leaving the not-for-profit sector as the only area of commercial cross-over between the pair.