Special Reports - Survey - Where the auditor is the director's old firm

We reveal the 18 FTSE players where an executive director is an old boy of the company's auditor. Research by Liz Fisher.
Companies where the auditor is the old firm of the finance director (or another top director) are shown in bold. FTSE company/ Qualifi- Alumni firm Company Fees paid to FD or CEO cation auditor auditors (m) 3i Group/ Coopers Ernst Michael Queen ICAEW & Lybrand & Young 1.4 Abbey National (1)/ Mark Pain ICAEW Touche Ross Deloitte 9.9 Alliance & Leicester (2)/ Thomson Richard Pym ICAEW McLintock Deloitte 3.3 Alliance UniChem (3)/ Thomson George Fairweather ICAS McLintock Deloitte 1.4 Amersham/ Arthur Giles Kerr ICAEW Andersen PwC 2.1 (partner) Amvescap (4)/ Arthur Robert McCullough CPA Andersen E&Y 2.4 (partner) Anglo American/ Whitley Tony Trahar (CEO) CA (SA) Brothers Deloitte 11.2 (now Deloitte) Associated British Foods/ John Bason ICAEW Arthur Young KPMG 6.4 AstraZeneca/ KPMG Jonathan Symonds ICAEW (partner) KPMG 4.4 Aviva/ Arthur Ernst Mike Biggs ICAEW Andersen & Young 15.4 BAA/ Deloitte & Margaret Ewing ICAEW Touche Deloitte 1.4 (partner) BHP Billiton (5)/ Chris Lynch Charles Goodyear (CEO) Both CPA KPMG/PwC 7.7** BOC Group/ Andersen Rene Medori Consulting PwC 5.5 BT Group/ Arthur Ian Livingston ICAEW Andersen PwC 12.5 Boots Group/ Arthur Howard Dodd ICAS Andersen KPMG 4.7 British American Tobacco/ Deloitte Paul Rayner ICAEW & Touche PwC 13.7 British Land Co (6)/ Arthur Graham Roberts Andersen British Sky ICAEW (partner) Deloitte 1.8 Broadcasting Group (7)/ Martin Stewart ICAEW Stoy Hayward Deloitte 7.8 Bunzl (8)/ Price David Williams ICAEW Waterhouse KPMG 3.5 Cable & Wireless/ Charles Herlinger ICAEW/CPA KPMG KPMG 9.9 Cadbury Schweppes (9)/ Coopers Ken Hanna ICAEW & Lybrand Deloitte 5.2 Compass Group/ Andrew Lynch ICAEW KPMG Deloitte 5.0 Daily Mail & General Trust/ Thomson Peter Williams ICAEW McLintock Deloitte 2.4 Dixons Group/ Deloitte, Jeremy Darroch ICAEW Haskins Deloitte 1.8 & Sells Emap/ Ernst Gary Hughes ICAEW & Whinney PwC 2.9 Exel/ Arthur Ernst John Coghlan ICAEW Andersen & Young 3.3 Friends Coopers Provident (10)/ & Lybrand Phillip Moore (consultant) KPMG 3.7* GKN/ Ernst Nigel Stein ICAS & Whinney PwC 4.3 Gallaher Group/ Coopers Mark Rolfe ICAEW & Lybrand PwC 5.6 GlaxoSmithKline/ John Coombe ICAEW Dixon Wilson PwC 20.9 HSBC Holdings/ KPMG Douglas Flint ICAS (partner) KPMG 22.1 Hanson/ Ernst Jonathan Nicholls ICAEW KPMG & Young 4.5 Hays/ Arthur John Martin ICAEW Andersen Deloitte 6.4 Hilton Group/ Price Ernst Brian Wallace ICAEW Waterhouse & Young 2.9 ITV/ Price Henry Staunton ICAEW Waterhouse KPMG/PwC n/a Imperial Tobacco Deloitte Group/ Haskins Robert Dyrbus ICAEW & Sells PwC 4.4 InterContinental KPMG, Hotels Group/ Coopers Richard Solomons (FD) & Lybrand Richard North (CEO) ICAS, (partner) E&Y n/a ICAEW Johnson Matthey (11)/ John Sheldrick CIMA KPMG 1.9 Land Securities Ernst Group/ & Young Andrew Macfarlane ICAEW (partner) PwC 2.2 Legal & General Group (12)/ Andrew Palmer ICAEW Brewer & Co PwC 2.6 Liberty International/ Aidan Smith CA KPMG PwC 0.8 Lloyds TSB Group (13)/ Coopers Philip Hampton ICAS & Lybrand PwC 10.5 Man Group/ Arthur Stanley Fink (CEO) ICAEW Andersen PwC 2.8 Marks & Spencer Group/ Alison Reed ICAEW Touche Ross PwC 2.3 mmO2/ Arthur David Finch ICAEW Andersen PwC 2.2 National Grid Transco/ Robson Steve Burrard-Lucas ICAEW Rhodes PwC 13.0 Next/ Gale David Keens ACCA Brown & Co E&Y 0.9 Northern Rock/ Spicer Robert Bennett ICAEW & Pegler PwC 1.2 Old Mutual/ Price Julian Roberts ICAEW Waterhouse KPMG 10.0 Prudential/ Both Philip Broadley Arthur Jonathan Andersen Bloomer (CEO) ICAEW KPMG 9.2 Reed Elsevier/ Price Mark Armour ICAEW Waterhouse Deloitte 5.9 (partner) Reuters Group/ Spicer David Grigson ICAEW & Pegler PwC 12.9 Rexam/ Coopers & Ernst Graham Chipchase ICAEW Lybrand & Young 3.9 Deloitte Rolls-Royce/ Arthur Andrew Shilston ICAEW Andersen KPMG 4.8 Royal & Deloitte Sun Alliance/ Haskins Julian Hance ICAS & Sells PwC 12.1 Royal Bank of Grant Scotland Group (14)/ Thornton Fred Watt Fred Goodwin (CEO) ICAS Touche Ross Deloitte 12.2 Sage Group (15)/ Baker Tilly, Paul Harrison Price Paul Walker (CEO) ICAEW Waterhouse, PwC 2.4 Arthur Young Sainsbury (J)/ Price Roger Matthews ICAEW Waterhouse PwC 2.0 Scottish & Newcastle/ Ernst Ian McHoul ICAEW KPMG & Young 4.8 Scottish & Southern Energy/ Arthur Gregor Alexander Andersen KPMG 0.4 Scottish Power/ Price David Nish Waterhouse Ian Russell (CEO) ICAS (partner) PwC 7.9 Thomson McLintock Shire Pharmaceuticals/ Coopers Angus Russell ICAEW & Lybrand Deloitte 1.6 Smith & Nephew/ Thornton Ernst Peter Hooley ICAEW Baker & Young 4.0 Smiths Group/ Arthur Alan Thomson ICAS Andersen, Price PwC 5.9 Waterhouse Tomkins (16)/ Arthur Ken Lever ICAEW Andersen Deloitte 3.3 (partner) United Utilities/ Armitage & Simon Batey ICAEW Norton Deloitte 1.0 (KPMG) Vodafone Group/ Jones Ken Hydon ACCA & Shipman Deloitte 20.0 WPP Group (17)/ Paul Richardson ICAEW KPMG Deloitte 7.6 Whitbread/ Ernst David Richardson ICAEW Touche Ross & Young 0.9 Wolseley (18)/ Price Steve Webster ICAEW Waterhouse PwC 4.5 (partner) Xstrata/ Peat Ernst Mick Davis (CEO) CA Marwick & Young 9.3 Yell Group/ Price John Davis ICAEW Waterhouse PwC 3.1

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 bold on the table.


FTSE 100 companies that have a chartered accountant (or an equivalent accountant who has trained with or worked for an accountancy firm) as finance director, chairman or chief executive are included in the survey.

Companies that have no qualified, practice-trained accountant in a senior position are excluded. The career history of non-executive directors who are qualified accountants is also taken into account, where it is known.

Information is gathered from directors' biographies published by the FTSE 100 and from the PwC Corporate Register.

Former Touche Ross employees in the UK are 'matched' with Deloitte. Former Deloitte, Haskins & Sells employees are matched with PricewaterhouseCoopers, since the firm merged with Coopers & Lybrand in the UK before C&L's merger with Price Waterhouse.


•   Fees relate to previous auditors

** Converted from US$ at a rate of 0.54

(1) Pain is MD of wholesale banking. Keith Woodley, non-exec deputy chairman, is an FCA and a former Deloitte Haskins & Sells partner

(2) Pym is group CEO

(3) Executive chairman Jeff Harris is an FCA - alumni firms are Touche Ross, E&Y and Spicer & Pegler

(4) Previously AA

(5) David Crawford FCA FCPA (audit committee), former Australian national chairman of KPMG

(6) Previously AA

(7) Resigned January 2004

(8) Paul Heiden ACA (audit committee) is ex-PMM

(9) Appointed 1 March 2004.

(10) NED Alison Carnwath is ex KPMG

(11) Director David Morgan is ex KPMG (12) Director Gareth Hoskin ex PW

(13) Resigned January 2004. No replacement named yet.

(14) CEO Fred Goodwin is ex Touche Ross

(15) COO Paul Stobart is ex Price Waterhouse. CEO Paul Walker is ex-Arthur Young. NED Michael Jackson is ex Coopers & Lybrand

(16) David Newlands FCA is ex Touche Ross partner

(17) Previously AA

(18) James Murray FCA (audit committee) is ex PW.

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