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Sunday, 25 June 2023
PwC Australia appoints Kevin Burrowes to lead firm as new CEO; Announces intent to divest its Government Business to Allegro Funds
PwC Australia, following consultation with the PwC Network, has announced today that Kevin Burrowes, who is currently the PwC Network’s Global Clients & Industries leader, will be appointed CEO. He will become a partner in PwC Australia and relocate to Sydney upon completion of the Australian immigration process.
In his capacity as CEO, Kevin will lead the management team and serve as Chair of the firm’s Executive Board to ensure the firm fully responds to the need to enhance leadership and governance and reinforce our values throughout the organisation. Kristin Stubbins will remain Acting CEO until Kevin’s relocation.
“The Board wants to thank our Acting CEO Kristin Stubbins for leading the firm during this challenging period marked by rapid change,” said Justin Carroll, Chair of the firm’s Governance Board. “We look forward to welcoming Kevin to our firm and leveraging his decades of executive leadership, unique experience working with PwC’s largest global clients and his extensive knowledge of the PwC Network.”
Kevin’s key priority will be to enhance the firm’s culture, with a focus on ethics and controls.
“Kevin’s experience across other parts of the PwC Network ensures that as he takes over the leadership in Australia he brings a fresh perspective to the firm, and he will work with his colleagues and management team to re-earn trust with PwC Australia's stakeholders,” continued Carroll.
“I am pleased that PwC Australia has appointed Kevin as CEO. In addition to working with PwC’s largest clients over the past several years, Kevin is an expert in PwC’s Network standards and governance structures and will be a great asset to the firm, said Bob Moritz, Global Chair, PwC. “Under past leadership, PwC Australia failed to meet the Network’s Code of Conduct and uphold the Network’s professional standards and values. Its past actions are not representative of the work and behaviours of PwC around the world and I am deeply sorry to our clients, our broader stakeholders and our people. PwC Australia has significant work to do and I am confident that the steps they are taking with the Network’s support will result in a stronger firm.”
Kevin will work with the firm’s new Chief Risk and Ethics leader, Tony O’Malley, and the wider management team to implement the recommendations of Dr. Ziggy Switkowski’s independent review of PwC Australia, which will be published in September as well as implement any other necessary changes that need to be made to improve the firm’s culture and standards.
“I am honoured to have been asked to lead an organisation that has been part of the Australian business community for 150 years,” said Kevin Burrowes, incoming CEO, PwC Australia. “Along with the leadership team, I will work tirelessly to increase transparency and repair trust with our stakeholders, while also enhancing our governance and culture.”
PwC Australia enters exclusivity agreement to divest its government business
PwC Australia has announced today that it has entered into an exclusivity agreement to divest its federal and state government business to Allegro Funds for $1. Both parties are targeting signing a binding agreement by the end of July.
The divestment will create two independent firms, while ensuring that there will be no disruption in vital services to public sector clients. PwC Australia will work with Allegro Funds to ensure a seamless transition.
“We have taken this step because it is the right thing to do for our public sector clients and to protect the jobs of the c.1,750 talented people in our government business. This transaction will result in the first pure play, at scale, government business in the market. This was an extremely difficult decision, but we are determined to take all necessary steps to protect the jobs of our people and re-earn the trust of our stakeholders,” said Justin Carroll, Board Chair, PwC Australia.
For PwC Australia, the transaction will result in an exit from all government advisory work, at both the state and federal levels. The divestment of this business, which represented c. 20% of the firm's FY23 revenue, will impact the firm’s future size and operations. However, it allows the firm to move forward with predictability and focus, and ensure stability for the rest of PwC’s clients in other parts of the business.
“This transaction marks a new direction for PwC Australia and puts us on a path for success as we focus on our people and serving clients across Australia and our critical role in supporting the capital markets,” said Carroll.
The appointment of a new CEO and the intent to divest the government business is the latest in a series of actions taken by the firm to enhance its governance, culture and accountability. As previously stated, PwC’s clients were not involved in any wrongdoing and no confidential information was used to enable clients to pay less tax.
Notes to editors
Kevin Burrowes Bio
Kevin first joined PwC in 1986. His most recent role at the firm is Global Clients and Industries Leader, based in Singapore. Prior to that, he was a member of PwC UK’s Executive Board for the past four years where, as Managing Partner, he led on Clients and Markets for the UK firm. As well as working for PwC earlier in his career, Kevin has held senior executive positions at IBM, Credit Suisse and Royal Bank of Scotland. He has been a PwC partner for 19 years, having re-joined PwC UK in 2009. He has lived and worked in London, New York, Singapore and Frankfurt. Throughout his career, he has focused on advising, leading and delivering strategy and transformation projects, predominantly in Financial Services.
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