Old boys' network - Where the auditor is the finance director's old firm

We reveal the 18 FTSE players where a director is an old boy of the company's auditor. Research by Liz Fisher.

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
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

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.


*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.

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