PwC partners claim firm didn’t follow the partnership deed in selecting Kevin Burrowes

Aggrieved partners at PwC Australia say Kevin Burrowes was appointed in contravention of the firm’s partnership deed.

Chief executive Kevin Burrowes’ appointment has upset some partners. Picture: Martin Ollman

PwC Australia partners made a complaint to the audit and consulting firm over the election of Kevin Burrowes to the top job, claiming they were only given three days between his bid for the role and his election as CEO, well short of the 14 days required under its governing documents.

But PwC Australia has batted away suggestions Mr Burrowes was handed the top job beyond the bounds of the firm’s governance, saying the British expat was handed the reins “in accordance with our partnership agreement”.

The Australian is aware of complaints being lodged by PwC partners, taking issue with interventions by the firm’s global leadership in the wake of a scandal in its tax practice that damaged the firm’s local business.

Partners are understood to have questioned how PwC’s global business rammed through the appointment of Mr Burrowes, with some questioning whether the new local boss had been appointed to manage the crisis or prevent it spreading overseas.

This comes as PwC talked up a toughening of its governing standards on Thursday, with the firm warning it will withhold cash from its CEO and directors if new scandals emerge.

PwC sought to cast the changes to its governing standards as the toughest move taken to date by the firm, which has faced turmoil at the top after revelations of a tax scandal and an excoriating cultural review that took issue with the firm’s highhanded and unaccountable leadership culture.

The Australian is aware of complaints from partners over PwC International’s intervention in the running of the local firm, including allegedly ignoring the proper rules around selection of a local managing partner.

Mr Burrowes, who was formerly a member of PwC’s global clients and industries business and sat on the firm’s global leadership team, was announced as new CEO of PwC Australia in mid-2023.

This came after CEO Tom Seymour resigned after the release of a tranche of emails showing the misuse of confidential government documents within the firm.

Mr Seymour was elected by the partners in March 2022, with his term set to expire in mid-2024.

PwC first appointed assurance lead partner Kristin Stubbins to steer the firm, saying the firm would elect a permanent CEO “in the coming months”.

Kristin Stubbins was appointed VEO in an acting capacity.

However, Ms Stubbins was dumped in June. She told a Senate committee she received a call from PwC Global chair Bob Moritz telling her she was to be replaced by Mr Burrowes.

She told the inquiry she had wanted to stay on as PwC CEO and had been “very disappointed” by Mr Moritz’s move to remove her in favour of the Singapore-based partner.

“I did want to continue. I wanted to own the outcomes of what had happened and I felt that I could lead the Australian firm,” Ms Stubbins said.

“I guess I wouldn’t say ‘surprised’ – I was very disappointed,” she said.

Mr Moritz and PwC International’s global general counsel Dianna Weiss flew to Australia as part of a bid by the firm’s global leadership to come to grips with the crisis gripping the firm.

Mr Burrowes’ appointment was announced on June 25, with PwC noting he would need to secure a visa to enable him to take on the top job.

PwC Australia chair Justin Carroll then told partners in an email on July 14 that Mr Burrowes was the only candidate for the CEO role, under rules in the firm’s partnership deed governing the appointment of a country senior partner, and he would be made CEO on July 17.

However, the PwC partnership deed requires 14 days from the notification of a candidate before they can be confirmed as “elected to the office”, allowing potential challengers to join the race for the top job.

PwC global chair Bob Moritz.

Mr Burrowes recently confirmed to partners he would extend his term as CEO until 2026, after being appointed for four years.

A PwC spokesman said Mr Burrowes “became CEO of the Australian firm under a process fully in accordance with our partnership agreement”.

“PwC Australia partners have this week overwhelmingly endorsed a milestone reform package which will significantly enhance the firm’s governance and set a new standard for professional service firms in Australia,” he said.

Greens senator Barbara Pocock said it was clear from parliamentary evidence that PwC’s global leadership were “calling the shots for a local firm – with no accountability for that international body”.

“Stubbins was charged by local partners with the role to steer PwC through the tax leaks crisis but wasn’t given the chance,” she said. “Local partners appear to have been sidelined by head office in London who were clearly more concerned about damage control than making any real changes within the firm.”

Senator Pocock said Mr Burrowes’ election left “any other potential local candidates on the sidelines”.

Originally published as PwC partners claim firm didn’t follow the partnership deed in selecting Kevin Burrowes