Westpac top lawyer to join embattled PwC as new general counsel

Battling continued fallout from the tax leaks scandal, PwC has employed its new top lawyer to join the firm.

New PwC general counsel Kylie Gray

Big four consulting firm PwC has employed former Westpac top lawyer Kylie Gray as their new general counsel, as it continues to grapple with the fallout from the shocking tax leaks scandal.

Ms Gray worked in Westpac’s in-house legal team for more than a decade, most recently as Litigation, Regulatory Investigations and Financial Crime General Counsel.

“I am thrilled to be joining PwC Australia at such an important time for the firm,” Ms Gray said.

“Opportunities like this do not often arise and I look forward to leading this crucial business unit as the firm seeks to re-earn and rebuild trust with its clients and stakeholders,” she said.

“Considerable change has already occurred at the firm, but there is more to do, and I am excited to be a part of this new chapter.”

Ms Gray’s former employer also faced intense public scrutiny over its ethical conduct, after Westpac was embroiled in the financial services and banking royal commission that wrapped up in 2019.

Westpac was ordered to pay $113m for “widespread compliance failures”, including the fees-for no service scheme in which more than 11,800 dead customers were charged $10.9m in fees for financial advice.

Separately, the bank agreed to pay a $1.3bn penalty in 2020 for failing to take measures to prevent money-laundering on more than 23 million occasions.

Chief executive Kevin Burrowes announced Ms Gray’s move, who is set to start in the new year, in an email to the firm's partners on Monday morning.

“Kylie has significant in-house legal experience, having worked in Westpac’s legal team for more than 13 years,” he said.

“Our General Counsel will continue to sit on our Management Leadership Team to provide input on executive decisions.”

One of Ms Gray’s first tasks will be to wrap up an ongoing probe into the office of general counsel, which PwC initiated in response to Dr Ziggy Switkowski’s report into the firm’s culture and governance.

Mr Burrowes said PwC’s acting general counsel Karen Evans-Cullen, who temporarily took the role up in July, will return to law firm Gilbert and Tobin in 2024.

“I thank Karen for her outstanding contribution and wise counsel across the past six months — she stepped away from her firm and team to help us until we were able to find a permanent General Counsel, and has been an amazing addition to our firm,” he said.

Earlier this year, the tax leaks scandal was revealed in which a partner shared confidential information from the federal government with clients to help minimise their tax.

That information was widely circulated within the firm, and no one at the executive level opposed it.

Ms Gray’s appointment came after PwC’s long time general counsel Meredith Beattie departed the firm in July following a restructure after the tax leaks affair.

Ms Beattie’s departure was a blow to the group as she was seen as leading the firm’s response to the scandal, and it followed a series of executive exits including former CEO Tom Seymour and eight senior partners.

It comes after PwC’s yearly Transparency Report showed a 39 per cent increase in serious misconduct matters being raised, with 72 per cent upheld.

Of those matters, 71 per cent related to bullying and harassment 23 per cent involved sexual harassment and 6 per cent involved data breaches.

As well, just 34 per cent of the firm’s partners are female, who have an 18.5 per cent gender pay gap with their male counterparts.

PwC also revealed in early November it would slash 338 jobs across the firm. The firm also faces an ongoing loss of new business in the wake of the scandal.