Earnings call

In case you were wondering how loaded your auditor might be, news from The Times this week is that pay for partners at KPMG is now greater than it is at PwC.

Distributable profits per partners at the Big Four firm is now on average £880,000, up 11% from last year.

And this despite KPMG warning of “headwinds” meaning a focus on costs.

Thing is, it’s not all glory. The Times leads with the news that despite a bumper pay day, this means KPMG partners are now only the “second best” paid partners. So, something to aim for.

Standing up for shareholders

The fearless corporate governance swots at the International Corporate Governance Network (ICGN) have sounded off at the US financial regulators over their stance on “no action requests”.

This was a decision by the US Securities and Exchange Commission to end the long-established practice of issuing “no action letters” that essentially allow boards to block some shareholder requests.

Abandoning this practice means boards can block whatever proposal they consider unwarranted, much to the annoyance of ICGN.

In a public letter to the SEC, Jen Sisson, chief executive of the ICGN, writes: “By stepping back from the process, the SEC risks significantly diminishing shareholder voice and reducing important checks and balances that exist to protect the long-term interest of the company and its owners.”

ICGN would also like the SEC to stop making governance rules on the fly through staff announcements and public remarks.

“We believe the absence of public consultants on important announcements, which may negatively affect shareholders rights, risks lowering the quality of the highly regarded due process and governance standards in the United States, thereby presenting a risk to the attractiveness of US capital markets and impact the valuation of US companies by investors.” Ouch!

Bags packed

A survey this week suggests boards around the world increasingly opt for planned succession. Meanwhile, shareholders at luxury goods brand LVMH have told Reuters that they see the “absence of a plan” to succeed business royalty Bernard Arnault, 76, as a risk.

LVMH tells Reuters a plan “obviously” exists but it not public. And obviously, no one at court wants to be seen challenging the king. Might get your Louis Vuitton luggage confiscated.