KPMG extends Andrew Yates CEO term for a further three years

27 March 2024 Consultancy.com.au 3 min. read
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Incumbent KPMG Australia chief executive Andrew Yates has had his term extended by the board for a further three years to mid-2027, with the past three having produced a mixed bag of highs and lows.

The Australian practice of professional services firm KPMG has extended Andrew Yates tenure as chief executive for a further three years, taking him to at least the middle of June 2027.

Yates assumed the role in mid-2021 around the same time as Big Four counterparts David Larocca and Adam Powick, with the Covid-19 crisis having reportedly taken its toll, but has had to navigate his own choppy waters in respect to heavy scrutiny and a consulting market slowdown.

KPMG extends Andrew Yates CEO term for a further three years

Yet, KPMG chairman Martin Sheppard said the board had undertaken “a rigorous process that included an independent external assessment and thorough review of performance on a range of metrics” before unanimously reconfirming Yates’ position at the helm. While PwC will soon follow suit, KPMG’s twelve-person board already includes two independent members, Patty Akopiantz and Jane Hemstritch, with former NSW premier Mike Baird also due to join.

“Building on the foundations of his first term as CEO, Andrew has presented to the board a strong vision and plan focused on meeting clients’ changing needs and accelerating digital solutions and services, responding to potential regulatory and other changes, further improving transparency to meet market and community expectations, and making the firm an even better place to work,” Sheppard stated, himself only installed in September.

The firm also cited Yates’ past achievements in the role, including overseeing KPMG’s recent period of growth, with the firm up by just shy of double-digits in its previous financial period to surpass $2.5 billion in annual revenues. Other highlights under Yates’ watch to date according to KPMG include the introduction of 26-week flexible parental leave policy, the embrace of and investment into artificial intelligence technologies, and last year’s organisational restructure.

There have however also been a few bumps along the way, including a hefty fine issued to KPMG Australia by the US industry watchdog over alleged widespread cheating on internal audit exams. Undoubtedly the biggest headache though has been the ongoing parliamentary inquiries into the consulting industry, during which KPMG has come across as second on the Senate's shit-list, aggravated by accusations against Yates of obfuscation over KPMG’s government ‘power’ mapping.

Speaking on his extension, Yates stated; “I am honoured to have been affirmed to continue my term as CEO and remain deeply committed to serving clients, their future needs and our people. I believe passionately in our people and the quality of work we undertake and am committed to working with the government and other stakeholders to build trust in the profession. I am determined that KPMG and our superb team will remain at the forefront of the industry.”