KPMG Australia has appointed Michael Ebeid as its first independent chairman as the company implements governance changes following recent integrity issues.
The announcement follows KPMG Australia’s action plan, launched last week, which sets out measures to rebuild trust and improve governance. Under that plan, the company also announced the departure of two audit partners and KPMG National chairman Martin Sheppard.
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The appointment of Ebeid is subject to required changes to the company’s partnership agreement and partner approval, it said in a statement.
Commenting on his appointment, Ebeid said: “I have agreed to take on this role because I believe in and respect KPMG. Despite the challenges the firm is facing, my resolve to support its important work is even stronger. I believe KPMG can recover, rebuild and emerge a better firm.
“My mandate is to strengthen independent oversight, make integrity central to everything we do, and drive the cultural and governance reforms needed to build confidence.
“My first priority is to restore the governance and effectiveness of the board. We will reshape the KPMG Australia Board with equal independent and partner representation.”
The company also plans to add independent involvement to the CEO appointment process.
Ebeid confirmed that KPMG Australia is accelerating its CEO appointment process.
He added: “We are adding an independent selection panel, and working with external agencies, including Riverstone Associates and Korn Ferry, on executive succession. I expect the Board to confirm the new CEO before the end of July.”
KPMG Australia is facing scrutiny over allegations that it misused confidential client information to pursue audit work. The company also faced criticism over its handling of whistleblower concerns.
The issue led to the resignations of the company’s CEO and chief operating officer.
