PwC Australia Refreshes Governance Board Amid Tax Leaks Fallout

PwC Australia has commenced the new financial year with a revamped governance board and several new appointments as it deals with the repercussions from its tax leaks scandal. A partner vote on the new board membership took place earlier this year, resulting in six new members taking office on July 1.

The newly appointed board members are Emma Hardy, Ewan Barron, Ian Hockings, Marcus Laithwaite, Michael Fung, and Rosalie Wilkie. These individuals replace Clara Cutajar, Tracey Kennair, Joe Short, Norah Seddon, Paul Abbey, Sumanth Prakash, and Paddy Carney.

Carney had previously made headlines as she was not only a member of the Australian firm’s governance board but also served on the board of the London-based PwC International Limited. Her name was brought up in the Australian parliament during the Senate’s estimates process, with Senators Richard Colbeck, Deborah O’Neill, and Barbara Pocock questioning whether PwC International could be compelled to provide the parliament and the Australian public with a copy of the elusive Linklaters report.

Representatives from the corporate regulator, the Australian Securities and Investments Commission (ASIC), informed the Senate that there was no basis for ASIC to investigate Carney, as she held no role relevant to ASIC’s regulatory jurisdiction.

PwC Australia is still in the process of seeking independent non-executive board members to fulfill its September commitment to have at least three independent members on the governance board. The governance board also includes PwC Australia’s chief executive officer, Kevin Burrowes, who recently disclosed to the Australian Senate that his remuneration package included an Australian component of A$2.8 million (US$1.9 million) and a previously undisclosed international component of A$1.2 million.

July 1 also marked the beginning of PwC’s restructured lines of business, with the firm establishing three distinct arms following the divestiture of its government consulting practice to Allegro Funds last year. The firm has now focused on advisory, assurance, and tax and legal as three individual lines of business.

A PwC spokesperson explained, “Following the launch of our new corporate strategy, which places clients and culture at the centre, PwC Australia is realigning some internal teams under three lines of service.” They continued, “This realignment will enhance collaboration and ensure we are leveraging our multidisciplinary solutions to meet our clients’ rapidly changing needs. This realignment does not involve redundancies, rather it will position PwC well for future growth, as we continue to deliver on our Commitments to Change.”

The firm's structural and personnel overhaul comes as it faces multiple investigations from the Tax Practitioners’ Board related to the tax leaks issue, an ongoing investigation by the Australian Federal Police, and a Department of Finance probe into the firm’s ethical fitness to undertake government work.

By fLEXI tEAM