Alumni from the Big Four accountancy firms and their predecessors have a wide influence in Britain's biggest companies. Their pervasive influence has left them open to accusations of conflicts of interest, especially where a company's finance director, or one of its other top executives, has links with its auditor. Whether such accusations are justified are discussed on the previous page. Here we show the companies where there are alumni links, which are highlighted in orange on the table.
Companies where the auditor is the old firm of the finance director (or another top director) are shown in orange
FTSE company FD (or other Qualification
director)
3i Group Michael Queen ICAEW
Abbey National Mark Pain ICAEW
Alliance & Leicester Richard Pym ICAEW
Alliance UniChem George Fairweather ICAS
Amersham Giles Kerr ICAEW
Amvescap Robert McCullough CPA
Associated British Foods John Bason ICAEW
Astrazeneca Jonathan Symonds ICAEW
Aviva Mike Biggs ICAEW
BAA Margaret Ewing ICAEW
BT Group Ian Livingston ICAEW
Boots & Co Howard Dodd ICAS
British American Tobacco Paul Rayner ICAEW
British Land Co Graham Roberts ICAEW
British Sky Broadcasting Group Martin Stewart ICAEW
Bunzl David Williams ICAEW
Capita Group Gordon Hurst ICAEW
Compass Group Andrew Lynch ICAEW
Daily Mail & General Trust Peter Williams ICAEW
Dixons Group Jeremy Darroch ICAEW
Emap Gary Hughes ICAEW
Exel John Coghlan ICAEW
Friends Provident Martin Jackson ICAEW
GKN Nigel Stein ICAS
Gallaher Group Mark Rolfe ICAEW
GlaxoSmithKline John Coombe ICAEW
Granada Henry Staunton ICAEW
HSBC Holdings Douglas Flint ICAS
Hanson Jonathan Nicholls ICAEW
Hilton Group Brain Wallace ICAEW
Imperial Tobacco Group Robert Dyrbus ICAEW
Invensys Adrian Hennah ICAEW
Land Securities Group Andrew Macfarlane ICAEW
Legal & General Group Andrew Palmer ICAEW
Liberty International Aiden Smith CA
Man Group Stanley Fink ICAEW
Marks & Spencer Group Alison Reed ICAEW
mmO2 David Finch ICAEW
National Grid Transco Stephen Box ICAEW
Northern Rock Robert Bennett ICAEW
Old Mutual Julian Roberts ICAEW
P&O Princess Cruises Nick Luff ICAEW
Prudential Philip Broadley ICAEW
Jonathan Bloomer ICAEW
Reed Elsevier Mark Armour ICAEW
Reuters Group David Grigson ICAEW
Rexam Graham Chipchase ICAEW
Rolls-Royce Paul Heiden ICAEW
Royal & Sun Alliance Julian Hance ICAEW
Royal Bank of Scotland Group Fred Goodwin ICAS
Fred Watt ICAS
Sage Group Paul Harrison ICAEW
Sainsbury (J) Roger Matthews ICAEW
Scottish & Newcastle Ian McHoul ICAEW
Scottish & Southern Energy Ian Marchant ICAEW
Scottish Power David Nish ICAS
Shire Pharmaceuticals Angus Russell ICAEW
Six Continents Richard North ICAEW
Smith & Nephew Peter Hooley ICAEW
Smiths Group Alan Thomson ICAS
Tomkins Ken Lever ICAEW
WPP Group Paul Richardson ICAEW
Whitbread David Richardson ICAEW
Wolseley Steve Webster ICAEW
Xstrata Mick Davis CA
FTSE company Alumni firm
3i Group Coopers & Lybrand
Abbey National Touche Ross
Alliance & Leicester Thomson McLintock
Alliance UniChem Thomson McLintock
Amersham Arthur Andersen (partner)
Amvescap Arthur Andersen (partner)
Associated British Foods Arthur Young
Astrazeneca KPMG (partner)
Aviva Arthur Andersen
BAA Deloitte & Touche (partner)
BT Group Arthur Andersen
Boots & Co Arthur Andersen
British American Tobacco Deloitte & Touche
British Land Co Arthur Andersen (partner)
British Sky Broadcasting Group Stoy Hayward
Bunzl Price Waterhouse
Capita Group Coopers & Lybrand
Compass Group KPMG
Daily Mail & General Trust Thomson McLintock
Dixons Group Deloitte, Haskins & Sells
Emap Ernst & Whinney
Exel Arthur Andersen
Friends Provident Touche Ross
GKN Ernst & Whinney
Gallaher Group Coopers & Lybrand
GlaxoSmithKline Dixon Wilson
Granada Price Waterhouse
HSBC Holdings KPMG (partner)
Hanson KPMG
Hilton Group Price Waterhouse
Imperial Tobacco Group Deloitte Haskins & Sells
Invensys Price Waterhouse
Land Securities Group Ernst & Young (partner)
Legal & General Group Brewer & Co
Liberty International KPMG
Man Group Arthur Andersen
Marks & Spencer Group Touche Ross
mmO2 Arthur Andersen
National Grid Transco Coopers & Lybrand (partner)
Northern Rock Unknown
Old Mutual Price Waterhouse
P&O Princess Cruises KPMG
Prudential Arthur Andersen
Arthur Andersen
Reed Elsevier Price Waterhouse (partner)
Reuters Group Spicer & Pegler
Rexam Coopers & Lybrand Deloitte
Rolls-Royce Peat Marwick Mitchell
Royal & Sun Alliance Deloitte Haskins & Sells
Royal Bank of Scotland Group Touche Ross
Grant Thornton
Sage Group Baker Tilly, Price Waterhouse
Sainsbury (J) Price Waterhouse
Scottish & Newcastle KPMG
Scottish & Southern Energy Coopers & Lybrand
Scottish Power Price Waterhouse (partner)
Shire Pharmaceuticals Coopers & Lybrand
Six Continents Coopers & Lybrand (partner)
Smith & Nephew Thornton Baker
Smiths Group Arthur Andersen, Price Waterhouse
Tomkins Arthur Andersen (partner)
WPP Group KPMG
Whitbread Touche Ross
Wolseley Price Waterhouse (partner)
Xstrata Peat Marwick
FTSE company Company auditor Fees paid to
auditors (m)
3i Group Ernst & Young 1.8
Abbey National Deloitte & Touche *1 7.7
Alliance & Leicester Deloitte & Touche 1.7
Alliance UniChem Deloitte & Touche *2 1
Amersham PwC 1.7
Amvescap Arthur Andersen *3 4.0
Associated British Foods KPMG 3.9
Astrazeneca KPMG 4.9
Aviva Ernst & Young 13.3
BAA Deloitte & Touche 1.3
BT Group PwC 27.9
Boots & Co KPMG 5.1
British American Tobacco PwC *4 20.5
British Land Co Arthur Andersen (now D & T) *5 2.4
British Sky Broadcasting Group Arthur Andersen (now D & T ) 14.4
Bunzl KPMG 3.9
Capita Group Ernst & Young 0.6
Compass Group Deloitte & Touche 5.0
Daily Mail & General Trust Deloitte & Touche 2.8
Dixons Group Deloitte & Touche 1.4
Emap PwC 1.7
Exel Ernst & Young 4.9
Friends Provident PwC 5.3
GKN PwC *6 5.7
Gallaher Group PwC 8.6
GlaxoSmithKline PwC 42.9
Granada KPMG 1.3
HSBC Holdings KPMG 24
Hanson Ernst & Young 3.6
Hilton Group Ernst & Young 3.5
Imperial Tobacco Group PwC 6.6
Invensys Ernst & Young *7 12.0
Land Securities Group PwC 1.6
Legal & General Group PwC 2.0
Liberty International PwC 2.9
Man Group PwC 1.0
Marks & Spencer Group PwC 3.5
mmO2 PwC 1.4
National Grid Transco PwC 12.4
Northern Rock PwC 1.0
Old Mutual KPMG 7.0
P&O Princess Cruises KPMG 4.2
Prudential KPMG 20.1
Reed Elsevier Deloitte & Touche 5.9
Reuters Group PwC 15.1
Rexam Ernst & Young 2.0
Rolls-Royce KPMG 5.0
Royal & Sun Alliance PwC 26.5
Royal Bank of Scotland Group Deloitte & Touche 12.2
Sage Group PwC *8 0.7
Sainsbury (J) PwC 2.7
Scottish & Newcastle Ernst & Young 4.4
Scottish & Southern Energy KPMG 0.3
Scottish Power PwC *9 18.1
Shire Pharmaceuticals Deloitte & Touche
Six Continents Ernst & Young 6.7
Smith & Nephew Ernst & Young 3.3
Smiths Group PwC 11.6
Tomkins Deloitte & Touche 2.6
WPP Group Arthur Andersen (now D & T) 17.3
Whitbread Ernst & Young 1.6
Wolseley PwC 4.9
Xstrata Ernst & Young 0.3
METHODOLOGY
We have included in the table FTSE 100 companies that have a chartered accountant as finance director, chairman or chief executive officer. Accountants who trained in industry and, with one exception, overseas have been excluded.
Information on directors' alumni firms has been gathered from biographies published by the FTSE 100 and the PricerwaterhouseCoopers Corporate Register, and from the companies themselves. The biographies do not distinguish between training firms and alumni firms.
The number of mergers between accountancy firms will have an effect on the 'matching' statistics, the most difficult being the fortunes of Deloitte, Haskins & Sells and Touche Ross. A merger between Deloitte, Haskins & Sells and Touche Ross was brokered by the New York firms in the 1980s.
The UK firm of Deloitte, however, rebelled and merged with Coopers & Lybrand to form Coopers & Lybrand Deloitte, which later dropped the 'Deloitte' part of its name before merging with Price Waterhouse. For the purposes of this survey, former Touche Ross employees in the UK are 'matched' with Deloitte & Touche and Deloitte, Haskins & Sells employees are matched with PwC.
KPMG was formed from, of course, Peat Marwick Mitchell and Thomson McLintock, Ernst & Young from Arthur Young and Ernst & Whinney, and Spicer & Pegler merged with Touche Ross, which later formed part of Deloitte & Touche.
NOTES
*1 Pain is MD of wholesale banking. Group FD Stephen Hester is not an accountant
*2 Executive chairman Jeff Harris is an FCA - alumni firms are Touche Ross, E&Y and Spicer & Pegler
*3 Andersen audited 2001 results, but Amvescap has since hired E&Y
*4 Chairman Martin Broughton is ex-Peat Marwick Mitchell
*5 Deputy chairman Derek Higgs is ex-AA. Executive director Cyril Metliss is a former Stoy Hayward partner.
*6 Chairman Sir David Lees is ex-Binder Hamlyn
*7 Previous CFO Kathleen O'Donovan (retired December 2002) is a former E&Y partner
*8 COO Paul Stobart is ex-Price Waterhouse. CEO Paul Walker is ex-Arthur Young
*9 Chief executive Ian Russell is ex-Thomson McLintock
Fees paid to auditors are the latest published.