Deloitte US CEO Cathy Engelbert has failed to gain backing from members of the board for a second term as the firm’s CEO, according to reports.
US partners were informed by email the Engelbert had not been put forward to run for a second term as head of the firm’s US business. The announcement comes less than a year before her first term is due to end. The position of CEO is held for a period of four years.
Partners at the Big Four firm have been left confused over the board’s decisions due to a lack of an explanation to why Engelbert has not been re-nominated for a second term, according to The Wall Street Journal.
It has been reported that partners at Deloitte believe the move not to nominate Engelbert for a second term is part of the board’s strategy to move the business further away from its traditional audit practice so that it can focus on expanding its consultancy business. Enbgelbert started working as an auditor for Deloitte in 1986 and previously lead firm’s auditing practice, Deloitte & Touche LLP.
Engelbert is currently chair of the Center for Audit Quality Governing Board and is on Fortune’s Most Powerful Women for a third consecutive year. When Engelbert became CEO in 2015, she was the first female CEO for a US Big Four firm.
Despite not being nominated for a second term as CEO, Engelbert could still be re-elected at a later stage of the succession process.
The International Accounting Bulletin has approached Deloitte US for comment and will update this article once a response has been received.