Do y’all think the EY breakup will allow consulting/advisory arm employees to make more money? What other benefits come from this break up?

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The X factor is whether or not post split growth lives up to expectations and the degree to which equity comp plans are put in place.

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SaT has historically had pretty high targets for CAGR, and it has historically met those. It has limited opportunities for consulting, as there is a lot of independence issues currently. Getting rid of those means more access to clients, but you have to win them over. I truly believe the 18% CAGR is realistic. We've been growing like crazy, even with the independence issues.

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What about being a public company that’s highly leveraged? How do you think that will impact the stand alone Advisory business?

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I can tell you don’t know what you’re talking about since as a public company, financials would have to be disclosed. 20% was illustrative, but if you look at Accenture, operating margins are about 15%, and that’s probably the best peer. Some other niche public companies like FTI and Huron are barely over 10%. Looking at publicly available peer group financials is a pretty good indicator of what can be expected. Back to football.

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No, and likely much longer track to partner, with future partners having more income tied to equity stock (ie not cash). Current partners doing a significant disfavor to employees.

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This is my expectation as well. Current partners will do quite well given the large one time equity slug (but lower base pay). The plan seems like a money grab for existing partners at the expense of employees with long term career aspirations in professional services.

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more in the booming years unless seriously mismanaged, but they need to run a tighter ship in the lean years

Wait NewCo is proposing equity comp? At what level? That will be huge. I left B4 to a consultancy that offers a cut of billable hours and that was instrumental to me leaving B4.

nothing officially stated but I would imagine it would be at all levels, with an emphasis on partners, senior managers, and directors

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