Weinberger to Step Down as CEO of EY in July

Mark Weinberger

Mark Weinberger will step down from his role as global chair and CEO of New York-based Ernst & Young (FY17 net revenue of $13 billion).

The move is effective on July 1, 2019, the start of EY’s financial year 2020.

During Weinberger’s tenure, the global organization has undergone tremendous change. EY has more than 270,000 employees in over 150 countries, and last year 65,000 people joined the firm.

During his tenure, the firm’s annual compound revenue growth rate was 8.5%. Over the past six years, over 120 acquisitions have brought in new skills and capabilities, such as cybersecurity, artificial intelligence and data, the firm announced.

Today EY has 2,000 software robots (bots) at work, with 1,300 of these for clients and 700 in use internally. There are now over 20,000 data and analytics practitioners and more than 2,000 data scientists in EY. Best-in-class blockchain, cyber and digital solutions have been developed in EY.

Within the organization, Weinberger championed increasing diversity. On the Global Executive, the highest governing body in EY, the percentage of women increased to more than 26% and it included more representation from the emerging market and early stage partners to bring in younger voices. Additionally, nearly 30% of the EY FY18 partner class consisted of women.

Weinberger has served on the EY Global Executive for the past 10 years and on the Americas Executive Board for the five years prior. He was elected to his current role in 2012.

Weinberger says, “When I reflected on the massive changes we have navigated over the last seven years and the strong position we command to enable EY to excel in the years ahead, I realized that the time is right for me to step aside.”

EY expects to appoint a new EY global chairman and CEO sometime in January, allowing a six-month transition.

CapinCrouse Appoints Fran Brown as Managing Partner

Gregory B. Capin

Greenwood, Ind.-based CapinCrouse LLP (FY17 net revenue of $21.4 million), which specializes in serving nonprofit organizations, announces that Fran Brown has been appointed MP, effective Jan. 1.

Gregory B. Capin, partner, chairman, and interim CEO, will retire as a partner of the firm on Dec. 31. This strategic leadership transition positions the firm for future growth through a continued focus on its mission of serving organizations whose outcomes are measured in lives changed.

Brown, a partner and the attest professional practice leader, joined the firm in 2014. He has more than 30 years of in-depth experience providing audit and management consulting services to a variety of nonprofit entities, including colleges and universities. Brown is a frequent speaker at seminars, workshops and conferences, and serves as a board member of several nonprofit organizations.

Capin has been with CapinCrouse since 1979 when he joined the firm his father, Richard Capin, founded to serve mission-focused ministries. He will continue to serve as an advisor to the firm.

“I am honored and excited to be the next managing partner for CapinCrouse,” Brown said. “We have a talented and dedicated team of empowered professionals serving clients who are changing lives around the world every day, and I am looking forward to the future that God has in store for the firm.”

CapinCrouse was founded in 1972. Today, the firm serves more than 1,500 nonprofit organizations nationwide with a wide range of audit, review, tax, consulting and cybersecurity services.

UHY Advisors Names New CEO

Steven McCarty

Steven McCarty

Chicago-based UHY Advisors (FY17 net revenue of $140.8 million) has named Steven McCarty as its new CEO, effective Jan. 1, succeeding longtime CEO Tony Frabotta, who will remain chairman of the IPA 100 firm.

McCarty has been leading UHY’s corporate finance business and was industry service leader of UHY’s professional employer organization practice. He’s also a member of UHY’s board of directors in addition to the Michigan region executive committee.

McCarty began his career 27 years ago in UHY’s tax department, moved later to the audit practice and eventually chaired the firm’s transaction services and corporate finance group. “I am grateful to our board for putting their trust in me to lead UHY’s national operations,” McCarty said in a statement. “Our firm is growing while the accounting profession as a whole is consolidating.

“Steve has been with UHY nearly 27 years and has proven himself as an exceptional colleague, industry professional and leader within the firm,” Frabotta said in a statement. “Steve has been a trusted confidant to clients and an active participant in the local communities which UHY serves. As the leader of our corporate finance practice, he has been instrumental in building that service line and participating in hundreds of middle-market transactions.”

Frabotta has served as co-CEO or CEO nationally at UHY for more than 10 years and has been running the firm’s Michigan practice for over 20 years.

“Tony Frabotta has done a masterful job building UHY partner unity and creating a strong marketing mentality,” says McCarty.

He plans to keep extending the firm’s footprint. Last week, UHY acquired Flynn Walker Diggin in Saratoga Springs, N.Y., and it merged in May with Del Conte Hyde Anello & Schuch in Farmington, Conn. In January, UHY expanded in Raleigh, N.C., with the acquisition of Bright Point Consulting. The firm is part of the UHY international network.

PKF O’Connor Davies Establishes German Desk

Ralf Ruedenburg

New York-based PKF O’Connor Davies (FY17 net revenue of $160 million) announced that it has hired Ralf Ruedenburg to serve as principal and practice leader of the new German Desk specializing in audit, tax and advisory services, merger and acquisition advice and tax structuring for U.S., German, Austrian and Swiss clients.

“Ralf is exactly the right person to lead this exciting expansion,” says MP Kevin J. Keane. “As our international footprint continues to grow, his leadership and experience will be essential in further establishing a robust offering for U.S. clients conducting business in Germany and German, Austrian and Swiss clients conducting business in the U.S.”

This growth is part of PKF O’Connor Davies’ initiative to solidify world-class services for international markets and answer the call from clients to extend the firm’s practice areas. The German desk will provide clients with international insights, technical expertise and a deep cultural understanding of German business needs and priorities. The firm also has a China Desk, serving Asian clients.

“I’m proud to join the incredible international team at PKF O’Connor Davies to expand our presence in the market where I began my career,” says Ruedenburg. “German-owned companies have a unique set of accounting needs, and I look forward to building a practice with exceptional professional services to drive better results for current and new clients.”

MSPC Announces Executive Team Changes

Patrick Trombetta

Cranford, N.J.-based MSPC Certified Public Accountants and Advisors (FY17 net revenue of $10.6 million) has announced that Jon Gagliardi, with more than 30 years of experience with the firm, has been named MP.

Gagliardi, who has a wide range of technical expertise, focuses on accountability and independent thinking. “We see a trend toward more consultative services. Clients need much more than tax returns and financial statements these days. They need professional advice on everything from growth to business wind-down.

We are focused on expanding our offerings to meet clients’ needs no matter where they are in the business life cycle,” notes Gagliardi. As part of the firm’s revised executive structure, Patrick Trombetta assumed the newly created COO role.

Richard Montalbano

Trombetta, who heads the firm’s employee benefit plans practice, takes on the management of firm operations. By sharing responsibilities, Gagliardi and Trombetta can both continue to serve their existing client base while handling various components of the Firm’s infrastructure.

MSPC also welcomes Richard Montalbano to the executive committee. Montalbano is PIC of MSPC’s New York office and has significant experience in complex tax situations and working with international clients.

James Flannery ended his 10-year term as MP Oct. 31. He will continue to serve on the executive committee in an advisory role for a year ensuring a smooth transition. He will now resume more active client relations assisting with consultative services such as mergers and acquisitions and succession planning.

New Role, New Perspective: IPA Spotlight on … Mary Elliot

INSIDE Public Accounting has reached out to Warren Averett’s new CEO Mary Elliott, subject of an IPA Spotlight last year, to discuss the rise of advisory services, firm threats and challenges, and the future of the profession.

Name: Mary Elliott

Mary Elliott

Mary Elliott

Title: CEO

Firm: Birmingham, Ala.-based Warren Averett (FY17 net revenue of $133.3 million)

Accomplishments:

  • Became CEO in January 2018 as the first female CEO in Warren Averett’s history.
  • Worked her entire career at Warren Averett, serving clients in the firm’s health care consuling division for 33 years.
  • Appointed as Warren Averett’s Chief Operations Officer in 2012.
  • Developed operations board for the firm, and served as chair for six years.

Among the IPA 100, accounting and audit revenue is declining, and non-traditional services are on the rise. Which practice area is growing fastest at your firm and how do you plan to continue expanding this niche?

Warren Averett embraces a holistic view of client relationships, with the focus on WA360 – a client-centered approach to understanding and addressing client needs. With this focus, all areas of consulting are continuing to grow, especially in specific industries like health care and government contracting. We have sought to hire more specialists outside the accounting field in areas such as IT consulting, HR consulting, staffing services, M&A, and transaction advisory services. Simultaneously, we make it a priority to hire accountants to work in traditional roles, and then develop their strengths and passions to later transition into our niches and consulting roles.

What’s the biggest threat facing your firm today?

The accounting industry is facing a situation where you must be innovative and evolve with the market in order to grow and be successful. Our clients are becoming more complex and savvy, our competition is progressing, and technology is going to replace some of the compliance work that our firms are executing.

How do you intend to overcome threats the firm is facing?

Successful firms are the ones who will see these trends, and adjust their approach, technology and talent to meet these changes. Warren Averett focuses on innovation. Our communications and programs within the firm encourage and reward team members who show an entrepreneurial mindset when working with a client, improving a process or developing an out-of-the-box solution or service.

How do you envision CPA firm services evolving over the next 10 years?

As technology evolves with the introduction of blockchain, artificial intelligence and robotic process automation, the entire business ecosystem will change. Technology will provide us with nontraditional ways to serve our clients, and that is always the goal – to focus on the client and put them at the center of everything we do. With clients having more accessibility to their data, we believe that our focus will evolve into interpreting the data, solving problems and creating solutions to help clients succeed.

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

DMA Appoints Hutmacher as President and CEO

Dan Hutmacher

Dan Hutmacher

DuCharme McMillen & Associates (DMA), which has four offices in Canada and 17 in the United States, has announced that its board of directors has appointed Dan Hutmacher as president and CEO.

Earlier this year, DMA’s board commissioned a national executive search for a successor to Dave Meinika, the firm’s longtime president and CEO, who stepped down in April due to health reasons. Though no longer an employee of the company, Meinika continues to serve as a member of DMA’s board of directors.

Hutmacher, who had been serving as interim president and CEO since Meinika’s departure, emerged from the search as the clear choice to lead DMA into the future.

Hutmacher joined DMA in 1989 and served in a variety of operational and managerial roles with increasing responsibilities. He most recently served as the company’s COO.

“I’ve been a proud DMA employee-owner for many years, and now I’m honored to lead the company,” Hutmacher says. “Over his many years of service, Dave poured his heart and soul into DMA and, in the process, created a unique and special culture that centers on our employee-owners and on providing great client service experiences. We want to preserve that culture while we continue to evolve as a business in order to meet our clients’ needs.”

Eisner Amper Admits Rod Smith as Partner 

Rod Smith

New York-based EisnerAmper (FY18 net revenue of $360.7 million) announces that Rod Smith has joined the firm as a partner in the assurance and technology control services practice within the audit group. He will specialize in A&A, IT audits, public companies, SOC reports, reporting standards and internal controls. Smith will be based in the Philadelphia office.

Smith has more than 25 years of experience in professional services, overseeing the execution and quality assurance of the IT control assurance portion for the firm’s financial statement audits, control attestation examinations and technology control assurance consulting services. His broad range of technology risk and control assurance experience extends to sectors such as banking, investment management, broker-dealers, property/casualty insurance, mortgage finance, technology services, and health care providers and insurers.

“With his experience and skills sets, Rod is a wonderful addition to our team” says Jim Mack, PIC of the firm’s assurance and technology control services Group. “His IT and risk management background offer, without a doubt, significant value to our clients.”

Frabotta Receives Distinguished Service Award

Anthony P. Frabotta

Anthony P. Frabotta

Chicago-based UHY (FY17 net revenue of $140.8 million) announced that its chair and CEO, Anthony P. Frabotta, has been recognized with The Distinguished Service Award from the Michigan Association of Certified Public Accountants.

The Distinguished Service Award is presented to those who have made significant contributions to the accounting profession. Honorees have shown exceptional leadership and service, making a lasting impact in their industry and their communities.

“As a true advocate for the profession, Tony has mentored hundreds of young CPAs, both at the firm and on the campus of Wayne State,” says Guy Gordon, WJR radio host and the emcee for the night. “Beyond the profession, Tony is a strong supporter of Detroit and its surrounding communities through involvement in several area charities”

Frabotta helped establish UHY Cares, a nonprofit organization run exclusively by employees. Over the entirety of his 44-year career, he has been an outstanding leader in the MICPA family.

IPA Spotlight On … Chris Geier, Sikich

Name: Christopher Geier

Christopher Geier

Christopher Geier

Title: CEO and MP

Firm: Naperville, Ill.-based Sikich (FY17 net revenue of $152.1 million)

Accomplishments:

  • Became CEO and MP on Jan. 1, 2017.
  • Former PIC of the firm’s advisory services and investment banking practice and a member of the executive board
  • More than 20 years of experience in mergers and acquisitions and capital raising transactions across multiple industries

Among the IPA 100, accounting and audit revenue is declining and non-traditional services are on the rise. Which practice area is growing fastest at your firm and how do you plan to continue expanding this niche?

With a wide mix of practice areas, Sikich is uniquely positioned to help businesses improve productivity and performance. And as technology changes the way accounting services are delivered, we are well-prepared to adapt. We have a robust technology practice that offers innovative digital strategies and technology solutions. We’re a leader in cloud and emerging technologies, and our solutions include everything from cybersecurity to artificial intelligence to blockchain. We are leveraging this expertise to place technology at the center of all the services we offer clients.

What’s the biggest threat facing your firm today and how do you intend to overcome it?

The competition for talent is increasing. We know we must continue to attract talented, innovative professionals to remain a competitive firm that offers impactful business solutions to clients. As a driver of innovation in the professional services industry, we are well positioned to attract ambitious and creative employees who question the status quo and seek to transform business processes. We continue to embrace an entrepreneurial company culture that rewards risk-taking and creative solutions. As a result, talented professionals who are looking to chart a unique, unencumbered career path will thrive at Sikich.

How do you envision CPA firm services evolving over the next 10 years?

Disruption is coming to the industry. Propelled by technological innovation, firms will need to change how they deliver services. Some will, and some won’t. As a result, I expect there will be significant consolidation in the industry over the next several years. The firms that adopt technology-enabled solutions will enhance client service and position themselves for long-term success.

Final thoughts?

My motto for our firm is, “Embrace change and learn to adapt. It’s inevitable in business that you will need to do both well.” That’s a good motto for the rest of the industry, as well.