Armanino Managing Partner Announces Retirement

Andy Armanino

Andy Armanino

Andy Armanino, CEO and MP of San Ramon, Calif.-based Armanino LLP (FY16 net revenue of $195 million), announced his upcoming retirement. Matt Armanino, COO, will succeed him effective Jan. 1, 2019.

During Andy’s tenure, the firm was regularly recognized as a Best of the Best firm by INSIDE Public Accounting (IPA). He has also been named to IPA’s Most Admired Peer list for six of the past seven years and currently serves as vice chair of Moore Stephens North America and Moore Stephens International, a global accountancy and consultancy network.

Matt Armanino

Matt Armanino

“While I am extremely proud of all our firm has accomplished, I am most proud of our efforts to become the most innovative and entrepreneurial firm that makes a positive impact on our clients and people,” says Andy Armanino. “I believe good leadership involves knowing how and when to initiate change. It is time for a new generation of Armanino leaders to take the helm, and I am confident that through them our legacy will live on and the firm will continue to thrive.”

Incoming MP Matt Armanino joined the firm as COO in 2008 and has been a member of its executive committee for the past nine years. In addition to managing firm operations, he’s led Armanino’s CFO advisory and cloud consulting practices. As CEO and managing partner, he will be responsible for the firm’s overall strategy, growth and culture across its audit, tax, consulting and business management practices.

“Andy’s unwavering leadership and extraordinary vision have driven Armanino to new heights,” says Matt Armanino. “He is a tough act to follow. But our firm is well-positioned for the transition. He has set us up for success and I am personally very excited to lead the firm as we continue to build on his legacy.”

Deloitte CEO Says Women in Top Roles Should Move From ‘Novelty to Norm’

Cathy Engelbert

Cathy Engelbert

Deloitte’s Cathy Engelbert, the first woman to become a CEO of a U.S. Big 4 accounting firm in 2015, knew that taking on the top job was a big deal for her personally. “What I didn’t realize was what a big deal it was outside the firm to get this role. It’s been great to show that women can be leaders of big companies.”

During the World Economic Forum in Davos, Switzerland, Engelbert recently spoke with Global Goalscast, a podcast of the We Are All Human Foundation, which promotes diversity, “radical inclusion” and equity. In an interview with co-host Edie Lush, Engelbert says she’s now accustomed to talking about cracking the glass ceiling, but adds, “I talk about how we need to move these elevations of women into key roles from novelty to norm. I think it’s really important to focus on that.”

In September 2016, Engelbert changed Deloitte’s leave policy to help both men and women take time off for family matters. “Our family leave program we think is industry-leading. Sixteen weeks for men and women, not just for parental leave, but for any family matters. It’s been amazingly positive,” Engelbert says. “Our people are fired up. The best email I got was from a man who said ‘I hope I never have to use it for a sick parent or a sick child but if gives me peace of mind that it’s there.’ We did something that was right for our people.” She told Lush that the move has helped Deloitte retain and recruit talent.

Engelbert also discussed the need to partner with Apple, Amazon, Facebook, HP and other emerging companies to help serve clients in an innovative way, saying, “No one company can do it alone in this fast-paced industrial revolution.”

She continues, “The hardest part about being a CEO today, I think, is there are so many shifts going on, Where do you deploy your capital? What choices to do you make? What impact do you want to have? Then, you have to bring in the fact with a 62% millennial workforce, our people want purpose driven in everything we do. And you’ve got to take care of well-being. So, it’s a fascinating time to be a leader and make these choices in how, again, you allocate not only your human capital, your financial capital, but your own time as a CEO.”

Engelbert also has some advice for up-and-coming female leaders. “Your career is not linear, it changes. You need to raise your hand and have confidence and take risks. When you don’t want to do something, you have to have what you want to do right behind it. The leader that thinks of you for positions wants to know you’re helping solve another problem they might have.”

View the full interview. 

Gelman Names New MP

Mark Tackmann

Mark Tackmann

Santa Ana, Calif.-based Gelman LLP named Mark Tackmann as MP, succeeding Larry Kane.

“We are very fortunate to have so many qualified exceptional leaders in the firm. The unanimous agreement of Mark as our new managing partner is outstanding for us. Mark’s leadership skills and business acumen are tremendous assets that will help propel continued success for Gelman. Mark’s vision for the firm’s future is inspiring and very exciting for all of us,” says Kane.

Tackmann has 23 years of experience in public accounting, and worked with Gelman previously. He rejoined the firm in August 2017 after spending the last 12 years as a partner with two Orange County-based CPA firms where he was instrumental in growing strategic advisory services, shaping the client-centric service models and using advanced technology to streamline and enhance the clients’ experience. Tackmann has experience at strategic business planning, mergers and acquisitions, financial analysis, and integrating both tax and assurance services.

Moore Stephens North America Elects Board Vice Chair

Rick Davis

Rick Davis

Rick Davis, CEO of Greenville, S.C.-based Elliott Davis (FY17 net revenue of $118 million) was elected vice chair of the board of directors of Moore Stephens North America (MSNA), effective Jan. 1.

“As a member firm, we realize the benefits of the Moore Stephens organization daily,” says Davis. “The opportunity to serve as vice chairperson of the board of directors is a unique honor. I am grateful for the trust of the membership as we all work towards the common goal of creating opportunities.”

“Our executive board is consistently filled with leaders from the top firms in North America,” says Tony Szczepaniak, CEO of MSNA.

In addition to Davis and Szczepaniak, the executive board consists of Andy Armanino, MP of Armanino LLP and chairman of the MSNA board, Beth Kieffer Leonard, MP at Lurie LLP, Cheryl Burke, COO of DGC, Tony Caleca, MP of Brown Smith Wallace, and Greg Hutchins, partner at HCVT.

BerganKDV Names New CEO

Dave Hinnenkamp

Dave Hinnenkamp

St. Cloud, Minn.-based BerganKDV (FY17 net revenue of $47.9 million) named Dave Hinnenkamp as CEO, effective July 1, 2018. Hinnenkamp is currently serving as BerganKDV’s wealth management PIC, a position he has held with the firm for the past 16 years.

A 34-year veteran of the firm, Hinnenkamp began his career at BerganKDV in 1984 as a staff accountant and rose through the ranks to become partner in 1992. In 2002, Hinnenkamp was responsible for the launch of BerganKDV Wealth Management as a startup entity. As a long-standing member of the firm’s leadership team, Hinnenkamp has been instrumental in guiding and developing the culture and structure of the organization.

“I have spent nearly one half of my career working on the CPA side of our business and the other half building the wealth management line of business, giving me a unique perspective. Human capital is our primary asset and my intention is to focus significant effort on attracting, retaining and developing talent and ensuring those talents are unleashed to grow and improve our firm,” says Hinnenkamp.

“The board of directors have worked diligently to identify the leadership traits, qualifications, core responsibilities and accountabilities needed to ensure our firm’s continued success,” says board chair Earl Edeburn, “We are confident that Dave has the perfect mix of technical expertise and even more important, passion around our firm’s vision, to lead our team as we continue to grow and thrive.”

Hinnenkamp succeeds current president and CEO Loren Viere, a 40-year veteran of the firm, who will remain on staff to continue to service clients and consult on merger and acquisition activity.

Maxwell Locke & Ritter Names Parks as Leading Partner

Kyle Parks

Kyle Parks

Austin, Texas-based Maxwell Locke & Ritter (FY16 net revenue of $24.2 million) has named Kyle Parks as leading partner, effective Jan. 1, 2019.

Parks will be the third leading partner in their 27-year history, succeeding Steven Knebel and Earl Maxwell. Knebel will continue his advisory and consulting practice and serve as a mentor to our people.

“Kyle is a strong entrepreneurial leader who will steer us through the next iteration of ML&R’s growth. He will maintain our focus on the strengths that have brought us success – selecting and retaining talent, working with clients who share our core values, protecting ML&R’s culture and giving back to the regional community that has been so good to us,” says Knebel.

Parks joined Maxwell Locke & Ritter in 2004 after 10 years with Ernst & Young. He specializes in corporate tax planning, merger and acquisition structuring, and IRS compliance and reporting requirements. He is a leader on ML&R’s business development and recruiting teams and serves a wide array of clients who are representative of the area’s economy.

“We will continue to focus on hiring great people and providing quality service to our clients in a highly responsive manner,” says Parks. “Likewise, we will continue to encourage our people to engage in and give back to the central Texas community. These qualities have built ML&R into what it is today and will continue to keep us successful as we move into the future.”

Crowe Horwath Extends Powers’ Term as CEO

Jim Powers

Jim Powers

Chicago-based Crowe Horwath (FY17 net revenue of $809.5 million) has reappointed Jim Powers as CEO. Powers’ CEO term has been extended to March 31, 2021.

“Under Jim’s leadership, Crowe has enjoyed a great deal of success from executing toward his vision of ‘Deep Specialization,’ ‘One Crowe’ and Crowe as a technology firm,” says Wendy Cama, chair of the board of directors. “Given this success, the board approached Jim about continuing as CEO, and we mutually agreed on a two-year term extension.”

Since the beginning of Powers’ tenure, the firm has increased its annual revenue by nearly 15% and increased its personnel by 18%. According to Cama, much of this growth and success can be attributed to a number of initiatives put in place under Powers.

“It has been a true privilege to serve as CEO, and I’m eager to keep working toward our future,” says Powers. “I’ve learned so much from this experience and am thrilled to continue during this exciting period as the industry incorporates technology into all that we do.”

Kassouf & Co. Names Callahan as New Managing Director

Jerry Callahan Jr.

Jerry Callahan Jr.

Birmingham, Ala.-based Kassouf & Co. (FY16 net revenue of $16 million) named Jerry Callahan Jr. as the new managing director of the firm. Callahan succeeds Gerard Kassouf as managing director, who has led the firm in this role since 1989 and will remain a director.

Callahan joined the firm in 1989 and has served in various roles, including his most recent position as a director in the health care services group. He specializes in health care management, tax compliance, financial planning, human resources and employee benefits, and business consulting and advisory services.

“I am humbled to be elected as the managing director of the firm,” says Callahan. “Our firm is built on a strong foundation and our staff is dedicated to serving our clients, our community, and each other. Our firm will continue to rise to meet the challenges of our clients.”

IPA Spotlight On … Michelle Thompson

Name: Michelle Thompson

Michelle Thompson

Michelle Thompson

Title: MP and CEO

Firm: Richmond, Va.-based Cherry Bekaert (FY17 net revenue of $173.8 million)

Accomplishments:

  • Election by my partners to be the fifth MP and CEO of our 70-year-old firm.
  • Selection as the managing partner of audit and assurance in 2011.
  • Admission to the Cherry Bekaert Partnership in 2001 after nine years of public accounting experience.
  • Establishing the firm’s risk advisory services group in 2001.

You’ve said your vision is to be successful “through transformation and innovation.” How is innovation encouraged at Cherry Bekaert?

Cherry Bekaert fosters a culture of innovation by supporting new ideas and projects proposed by our people – from receptionist to partner. Our goal is to harness the diverse talent, experiences and ideas that live in the culture of our firm. Through our funded innovation committee, we collect, evaluate and select projects for testing, execution and implementation.  We encourage solutions that deliver efficiency in our processes, growth in our product/service capabilities and loyalty in our clients

You’ve also spoken of forming a close partnership with technology to lead the firm into the future. How is the firm using the latest technologies, such as AI, blockchain etc., to improve services to clients?

Building the best toolbox for the future requires investment and a willingness to try new things, some of which might not work. We will test new technologies that apply artificial intelligence, data analytics or blockchain capabilities and put some of them into full production. These technologies allow us to change how we work and give us greater insights into our clients more quickly and frequently than ever before. They increase our horsepower. But in the end, people trust people. Our goal is to create a partnership with technology where our people are the interface and technology is the engine.

Do you face any special challenges as one of only three female MPs in the top 30 firms in the nation?

I face the same challenges that every other MP faces – how to care for your people, create value for your clients and rapidly and responsibly respond to external and internal forces to create a sustainable and thriving firm. However, I do realize that people are paying attention to that difference. Rather than seeing it as a challenge, I view it as an opportunity. More women enter this profession than men, yet very few women hold top leadership positions. So, I carry an additional responsibility of being a positive role model for other women in our firm and in the profession. I take that responsibility very seriously.

What are your growth plans for the firm over the next five years?

Our mission is to make a difference for our people and our clients. Growth creates opportunities for our people – whether it’s expansion into new markets or the addition of new service offerings. Growth in our service offerings and capabilities is driven by the needs of our clients in this fast-paced, ever-changing world. Through this lens we will continue to pursue our growth strategy of building critical mass in existing locations, strategically evaluating and entering new geographic locations and enhancing our stable of service offerings.

Final thoughts?

These are exciting times in our profession. Over the next five years, the profession is likely to change more than it did in the previous 20 (or more) years. Our CPA designation will continue to differentiate us from other professions but we will need to learn new skills, embrace new technologies and change in a way we never have before. I can’t wait!

Do you know someone else who would make a good Spotlight? Contact Christina Camara.

IPA INSIDER: Advice to Managing Partners from the Trenches

If you’ve ever felt frustrated motivating partners, and managing their range of personalities and egos, perhaps there’s some comfort in knowing you’re not alone.

INSIDE Public Accounting asked MPs to offer insights to their role as firm leader.

More than 70 MPs responded to IPA’s survey, sharing candid feedback on challenges faced and solutions found, the frustrations and rewards, the misconceptions and realities.

In this download, IPA uncovers just what MPs think of the position.

MPs answer questions such as…

  • What one thing do you wish someone told you when you became MP about the reality of partner motivation?
  • What one thing do you wish someone told you about aligning the firm behind a common vision?
  • How do you balance gaining consensus from the partner group with the need to make decision quickly?
  • How would you change your firm structure?

Download the report.