Global review 2018

Facts and figures

In recent years, there has been much conversation about corporate reporting and whether current methods are still fit for purpose. Business, the media, governments and regulators, and academics have all been involved. The growing consensus is that if businesses want to build trust then they must tell a more complete story of how they are creating value for all of their stakeholders. This story must go beyond presenting a narrow range of financial metrics to encompassing a broader range of both financial and nonfinancial metrics that provide a more transparent view of an organization’s purpose, objectives and plans.

Different groups have suggested different principles and practices, and EY has been involved in several efforts, including with the International Integrated Reporting Council and the United Nations Global Compact. For the past year, we’ve been working on an initiative called The Embankment Project for Inclusive Capitalism, in an effort to produce a common framework to measure foundational elements of long-term value creation. This will help companies better demonstrate how they create value for a full range of stakeholders, including employees, supply chains, communities and society at large – promoting more inclusive and sustainable growth.

This year at EY, we are moving toward communicating more information regarding our important stakeholders – our people, our engagement, involvement in communities and our effect on environment. We are including a broader range of financial and nonfinancial metrics in addition to the traditional financial ones in this global review, and are moving to a three-year reporting time horizon to better show trends.

We look at major strategic assets including our people, our relationships with clients and other stakeholders, our brand and our financial strength. We organize these according to the five elements of our strategic ambition:

  • To be the most favored employer
  • To be #1 or #2 in market share in our chosen services
  • To have leading growth and competitive earnings
  • To have the best brand
  • To have positive and strong relationships with our stakeholders

This is a journey that we’re just starting on, so we welcome feedback on our approach.

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1

Global review

Leading employer

Learn about our people numbers, employer attractiveness, people engagement and more.

Global headcount

  •  
      FY15 vs FY16 FY16 FY17 vs FY16 FY17 FY18 vs FY17 FY18
    Assurance 7.5% 82,555 4.9% 86,562 2.6% 88,849
    Advisory 15.6% 48,104 11.3% 53,525 11.7% 59,794
    Tax 7.0% 46,216 6.9% 49,386 7.3% 53,008
    TAS 14.1% 12,236 11.6% 13,654 11.7% 15,246
    Practice Support 6.5% 41,689 6.6% 44,443 0.5% 44,662
    Total 9.2% 230,800 7.3% 247,570 5.7% 261,559
    *Headcount numbers reflect personnel at the end of each financial year
  •  
      FY16 vs FY15 FY16 FY17 vs FY16 FY17 FY18 vs FY17 FY18
    Americas 6.0% 65,691 2.1% 67,075 4.9% 70,341
    Asia-Pacific 11.4% 38,986 7.5% 41,898 4.4% 43,722
    EMEIA 7.7% 93,943 7.3% 100,792 5.9% 106,775
    Japan 0.3% 7,682 2.6% 7,880 -0.7% 7,824
    Global Delivery Services – Client Service** 32.9% 12,382 31.2% 16,248 15.7% 18,793
    Global Delivery Services – Enablement 20.2% 5,734 25.6% 7,200 2.7% 7,397
    Executive services and functions^ 4.2% 6,382 1.9% 6,477 3.6% 6,707
    Total 9.2% 230,800 7.3% 247,570 5.7% 261,559
    *Headcount numbers reflect personnel at the end of each financial year
    **Global Delivery Services (GDS) is the EY internal shared services organization, consisting of legal entities ultimately owned by a number of EY member firms. GDS entities support EY member firms across the world by providing support capabilities to their client-serving account teams as well as internal enablement support services. 
    ^Includes such teams as: Global and Area management; Technology; Talent; Finance; Brand, Marketing and Communications; Knowledge; Markets and risk management. 

Employer attractiveness

Attrition

People engagement

  •  
      FY16 FY17 FY18
    Total survey participants 178,000 193,000 203,000
    Participants as % of headcount 81% 82% 82%
    Engagement Index score 73% 73% 73%
    Pride in EY score* 84% 84% 84%
    *“I am proud to work for EY” has remained constant at 84% over the past three years. This is a key driver of engagement, recruitment referrals and retention. 

Career progression

  •  
      FY16 FY17 FY18
    Total promotions 32,192 31,950 33,888
    Promotions to partner 714 669 747
    % of women among new partners 29 30 29
    % of promoted partners from emerging markets 35 36 32

Developing skills and capabilities

  •  
      FY16 FY17 FY18
    Learning hours delivered 12m 12m 13m
    Learning hours per person 54 51 51
    Total investment in training US$500m US$500m US$500m

Diversity and inclusiveness

  •   FY16 FY17 FY18
      Total Women:men% Total Women:men% Total Women:men%
    Partners and principals 11,562 19.8:80.2% 11,484 19.7:80.% 11,870  20.4:79.6%
    Partners, principals, executive directors, directors 17,558 23.4:76.6% 17,410 23.3:76.7% 18,093 24.0:76.0%
    Total people 230,800 47.5:52.5% 247,570 47.5:52.5% 261,559 47.6:52.4%
  •   FY 16 FY 17 FY 18
      Total Women:men% Total Women:men% Total Women:men%
    Global Executive 18 28:72% 18 22:78% 19 26:74%
    Global Practice Group 115 22:78% 116 22:78% 122 22:78%
    Global Governance Council 42 31:69% 39 36:64% 39 33:67%
    Global Client Service Partners* 285 7:93% 287 10:90% 301 12:88%
    * Lead client servers on our largest global clients
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2

Global review

Leading growth

Our financial performance and service quality

Revenues

Five year

8.5%

CAGR

  •  
      FY16 vs. FY15 FY16 FY17 vs. FY16 FY17 FY18 vs. FY17 FY18
    Assurance 4.8% 11.3 4.0% 11.6 4.4% 12.6
    Advisory 13.1% 7.8 10.4% 8.5 10.1% 9.6
    Tax 9.6% 7.8 7.9% 8.2 6.4% 9.0
    TAS 14.2% 2.7 15.5% 3.1 13.9% 3.6
    Total 9.0% 29.6 7.8% 31.4 7.4% 34.8
    * Revenues include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated.
  •  
      FY16 vs. FY15 FY16 FY17 vs. FY16 FY17 FY18 vs. FY17 FY18
    Americas 9.7% 13.6 7.0% 14.5 7.3% 15.6
    Asia-Pacific 12.5% 3.2 11.3% 3.6 10.5% 4.1
    EMEIA 7.5% 11.7 8.6% 12.2 6.9% 13.9
    Japan 6.4% 1.1 -2.0% 1.1 3.2% 1.2
    Total 9.0% 29.6 7.8% 31.4 7.4% 34.8
    * Revenues include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated.
  •  
      FY16 FY17 FY18
    Emerging markets 12.8% 8.9% 10.0%
    Developed markets 8.2% 7.6% 6.9%
    Total 9.0% 7.8% 7.4%

Quality

  •  
      2015 2016 2017
    Compliant engagements 72% 68% 73%
    Compliant engagements with immaterial findings 21% 24% 21%
    Total compliant engagements* 93% 92% 94%
    Deficient engagements^ 7% 8% 6%
    * Such findings may result in the need for additional audit procedures or documentation. However, given their nature these matters would not be expected to have a significant impact to the overall audit conclusion.
    ^ Findings in procedures or documentation that are material to the financial statements, auditor’s reports or were not performed in accordance with our policies.
  •  

      2015 2016 2017
    Compliant engagements 69%     67% 71%
    Compliant engagements with immaterial findings 22% 25% 21%
    Total compliant engagements* 91% 92% 92%
    Deficient engagements^ 9% 8% 8%
    * Such findings may result in the need for additional audit procedures or documentation. However, given their nature these matters would not be expected to have a significant impact to the overall audit conclusion.
    ^ Findings in procedures or documentation that are material to the financial statements, auditor’s reports or were not performed in accordance with our policies.
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3

Global review

#1 or #2 in market share of chosen services

Learn more about the companies we serve.

Client makeup

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4

Global review

Best brand

Learn about our brand favorability ranking.

Brand favorability

  •  
      2013 2015 2017
    EY global ranking #2 #2 Tied #1
    Best brand in EY regions  n/a 7 (25% of 28 regions) 12 (38% of 26 regions)
    *EY’s Global Brand Survey results
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5

Global review

Positive and strong relationships with stakeholders

Our community investment and initiatives, and environmental impact

Positive and strong relationships with stakeholders

  •  
      FY16 FY17 FY18
    Hours invested in community initiatives worldwide by EY people  (000’s) 700 700 739
    Value of time contributions (US$m) 44 47 51
    Cash investments (US$m) 57 58 61
    Total 101 105 112
    *EY uses the LBG framework and methodology to measure and value our community investments. The framework is a global standard for measuring community contributions and is aligned with leading sustainability indices such as the Dow Jones Sustainability Index and the Global Reporting Initiative.
  •  
      FY15 FY16 FY17
    Total emissions 986,000 1,185,000 1,190,000
    Emissions per employee (FTE) 5.15 5.23 4.89
    Scope 1/2 GHG protocol 204,000 209,000 189,000
    Scope 3 GHG protocol 782,000 976,000 1,001,000
    [1] The carbon footprint of our global organization is calculated in line with the EY global carbon footprint methodology. This is based on the Greenhouse Gas (GHG) Protocol developed by the Word Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD), using its “location-based” approach to reporting.
    Emissions calculations use 2017 conversion factors published by the Department for Business, Energy & Industrial Strategy in the UK, or locally published factors where appropriate. The conversion factors used to calculate emissions from air travel include the impact of “radiative forcing.”
    For further details, please refer to https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2017.
    Emissions from office energy consumption are estimated using activity data from 26 member firms, representing 70% of the global office portfolio. The majority of the reduction can be attributed to changes in GHG conversion factors for grid electricity in key locations.
    Emissions from air travel are estimated using distance data that represents 83% of global spend on air travel.
    Emissions from ground transportation (including rail travel and business travel in EY-owned, rental and employee vehicles) are estimated using fuel consumption and distance data for approximately 80% of employees.
    FY16 figures for Scope 3 emissions and emissions per full-time employee have been restated following a change in travel provider and improvements to our carbon footprint calculation methodology. We are unable to restate FY15 figures on a like-for-like basis, due to limitations in the historical data.
     
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6

Global review

Leadership and locations

Find out about our leaders and the locations we operate in

Leadership team

The Global Executive is our highest body, focusing on strategy, execution and operations. Its membership brings together all the elements of our global organization, including the leaders of our geographic Areas and service lines. View our leadership.

Other leaders

To ensure we are efficient and effective, we have organized our legal entities into 26 similarly sized – in terms of both people and revenues – business units called Regions. These Regions, led by Regional Managing Partners, are grouped into four geographic Areas: Americas, EMEIA, Asia Pacific, and Japan.

Americas

Kelly Grier
Area Managing Partner — Americas

Jad Shimaly
Canada

Julie Boland
USA — Central

Anthony Caterino
Financial Service Organization

Ronen Barel
Israel

Francisco Álvarez
Latin America — North

Rich Jeanneret
USA — Northeast

Sergio Romani
Latin America — South

Randy Cain
USA — Southwest

Kay Mathews
USA — West

Asia-Pacific

Patrick Winter
Area Managing Partner — Asia-Pacific

Max Loh
ASEAN

Gary Hwa
Financial Services Organization

Albert Ng
Greater China

Jin Sug Suh
Korea

Tony Johnson
Oceania

EMEIA

Andy Baldwin
Area Managing Partner — EMEIA

Ajen Sita
Africa

Jacek Kedzior
Central, Eastern and Southeast Europe

Marcel van Loo
Financial Services Organization

Julie Teigland
GSA

Rajiv Memani
India

Donato Iacovone
Mediterranean

Abdulaziz Al-Sowailim
MENA

Erik Mamelund
Nordics

Steve Varley
UK&I

Jean-Pierre Letartre
Western Europe Maghreb

Japan

Scott Halliday
Area Managing Partner — Japan

Our sector focus means we can help clients better anticipate market trends, identify the implications for their businesses, and deliver sector-specific solutions. It is part of our commitment to exceptional client service. Shaun Crawford, as EY Global Vice Chair — Industry, oversees the work that EY teams do across our industry sectors.

Shaun Crawford
Global Vice Chair — Industry

Energy
Benoit Laclau

Advanced Manufacturing & Mobility
Randy Miller

Health Sciences & Wellness
Pamela Spence

Technology, Media & Telecoms
Greg Cudahy

Consumer
Kristina Rogers

Financial Services
Gary Hwa

Smart Infrastructure
George Atalla

Private Equity
Andres Saenz

The Global Governance Council consists of 36 senior client-serving partner-ranked professionals drawn from member firms across the four EY Areas, and up to six independent non-executive members. These senior EY professionals who otherwise do not hold senior management roles, are elected by their peers. They advise EY on policies and strategies and the approval of the Global Governance Council is required for a number of significant matters that affect the organization as a whole.

*Presiding Partner
Americas Regions — 14 representatives

Canada
Paul Battista*

Central

Julie Gannon Boland

FSO
Laura Giovacco
Belinda Pestana

Israel
Chen Shein

Latin America — North
Francisco Olivares

Latin America — South
Andrea Weichert

Northeast
Diana Hoff

Southeast
Oscar Suarez

Southwest
Bill Strait

West
Beth Carr

National Practices
Kevin Brown
Alex Shahidi
Katrina Kimpel

Asia-Pacific Regions — five representatives

ASEAN
Wilson P Tan

FSO

Effie Xin

Greater China
Vincent Chan

Korea
Dong Chul Kim

Oceania
Trent Van Veen*

EMEIA regions — 15 representatives

Africa
Gerald Lincoln

BeNe

Alexey Loza

CSE

Guntars Krols

FSO
Rosheen Dries

WEM
Gilles Puissochet

GSA
Ralf Bostedt
Robin Errico

India
Sonu Iyer

Mediterranean
Francisco Javier Sanchez Ramos

MENA
Yasmeen Muhtaseb

Nordics
Torben Bender*

UK and Ireland
Chris Voogd
Alison Duncan

Japan — two representatives

Masami Koike*
Koji Fujima

Global Independent Non-Executives - up to six representatives

CK Chow
Atsushi Saito
David Thorburn
Jurgen Kluge

Areas

EY member firms are organized into 26 Regions, which are grouped into four geographic Areas: Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific, and Japan.
Canada
Financial Services Organization

Bahamas
Bermuda
British
Virgin Islands
Cayman Islands
United States

Israel
Latin America — North

Bolivia
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Peru
Venezuela

Latin America — South

Argentina
Brazil
Chile
Paraguay
Uruguay

USA — Central
USA — Northeast
USA — Southwest
USA — Southeast

Aruba
Barbados
Curaçao
Jamaica
St Lucia
Trinidad and Tobago

USA — Southwest
USA — West
EY member firms are organized into 26 Regions, which are grouped into four geographic Areas: Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.
ASEAN

Brunei
Cambodia
Guam
Indonesia
Laos
Malaysia
Maldives
Myanmar
N. Mariana Islands
Philippines
Singapore
Sri Lanka
Thailand
Vietnam

Financial Services Organization

Greater China

China
Mongolia
Taiwan

Korea
Oceania

Australia
Fiji
New Zealand
Papua New Guinea

EY member firms are organized into 26 Regions, which are grouped into four geographic Areas: Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.
Africa

Angola
Botswana
Cameroon
Chad
Congo
Democratic Republic of the Congo
Equatorial Guinea
Gabon
Ghana
Guinea
Ivory Coast
Kenya
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Seychelles
South Africa
South Sudan
Tanzania
Uganda
Zambia
Zimbabwe

Central, Eastern and
Southeastern Europe

Albania
Armenia
Azerbaijan
Belarus
Bosnia and Herzegovina
Bulgaria
Croatia
Cyprus
Czech Republic
Estonia
Georgia
Greece
Hungary
Kazakhstan
Kosovo
Kyrgyz Republic
Latvia
Lithuania
FYR of Macedonia
Malta
Moldova
Montenegro
Poland
Romania
Russia
Serbia
Slovakia
Slovenia
Turkey
Ukraine
Uzbekistan

Financial Services Organization

Gibraltar

Middle East North Africa

Afghanistan
Bahrain
Egypt
Iraq
Jordan
Kuwait
Lebanon
Libya
Oman
Pakistan
Palestinian Authority
Qatar
Saudi Arabia
Syria
United Arab Emirates

Germany, Switzerland and Austria

Austria
Germany
Liechtenstein
Switzerland

Nordics

Denmark
Finland
Iceland
Norway
Sweden

India

Bangladesh
India

UK and Ireland

Republic of Ireland
United Kingdom

Mediterranean

Italy
Portugal
Spain

Western Europe Maghreb

Algeria
Belgium
France
Luxembourg
Monaco
Morocco
Netherlands
Tunisia

EY member firms are organized into 26 Regions, which are grouped into four geographic Areas: Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.
Japan

Our locations

With over 700 locations in over 150 countries, we provide local knowledge with global experience.