The world’s third largest professional services network is to
combine the operations of its member firms across Europe, the
Middle East, India and Africa (EMEIA) into a single business
In a major and unprecedented global restructure, Ernst & Young
(E&Y) has approved the combination of 43 European firms into a
single legal entity and will further integrate operations in the
Middle East, Africa and India where legally possible.
In a separate move, 700 E&Y partners in Asia have also approved
the integration of 15 firms in the Far East Asia region.
E&Y Global said the restructure was motivated by a desire to
mirror the globalisation of clients and industry in general. The
EMEIA practice will be an $11.2 billion organisation and comprise
of about 60,000 people. It will be led by a single executive team
implementing a shared strategy. Within EMEIA, there will be 13
sub-areas that will have parallel management and governance
structures. Costs and investments will be shared across the
E&Y added: “All 3,300 partners across EMEIA will have the same
approach to performance evaluation and compensation. The partners
will be employed in the local legal entities and the profits will
be earned and people paid by those local entities”.
E&Y UK chairman Mark Otty has been nominated to lead EMEIA.
Partners within EMEIA will vote on the integration by the end of
May and the new practice could become effective as soon as
The integration of the Far East Area creates a $1.2 billion
organisation, with more than 20,000 people.
The new structure will also be effective from 1 July 2008. David
Sun and Jim Hassett have been confirmed as Far East co-area
E&Y said the integration will allow it to better risk manage
practices in the hope this will prevent any large-scale lawsuits
affecting firms across the region.
E&Y said: “The separate legal nature of each member firm in the
area will be respected and clients will continue to do business
with local country legal entities. Each member firm will also
continue to maintain its own professional indemnity