Seems like EY would have an exodus of employees post-split. We will get randomly assigned to assureCo vs newCo by leadership and expecting many people going to assureCo will try to flee to other B4 especially for senior and lower level.

likefunny
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Good. I will flee to EY either new or assureco

funny

It sounds like there is going to be retention bonuses at least.

like

Can’t imagine they can pay enough for competitors to not make whole

like

I wouldn’t blame them

Is the split happening? I thought it had not yet received partner approval.

It is but very highly likely at least for EY US at this point

Agreed EY

The thing is that regardless of the split most seniors and below would be fleeing anyways within a two year period for exit ops. I doubt most will flee specifically because of the split. Pay will not change that much in either NewCo or AssureCo, and whats the point in leaving to another big 4 that pays the same.

FDD is essentially all NewCo 85%, the biggest question is Valuations which is basically 50/50.

At the same time you have plenty of people lined up wanting to join the advisory groups at AssureCo (basically EY needs to rebuild) and NewCo. Seniors and below are always replaceable.

Yes because there is always opportunity to grow. Hiring new partners, taking clients from other firms, there will always be new client wins. It takes time, but service lines are always rebuilt. 20 years ago it was the same thing, history repeats itself.

It’s also the opposite for newco, if clients don’t go to newco for services and the EY brand is gone, it still has an impact. If growth targets are not met (especially in a recessionary environment with no audit revenues to fall back on) you will see layoffs.

No one knows what will happen after the split. Seems like everyone is bias and more optimistic about newco, but if things go wrong. NewCo is the first to be savage and put people on the chopping block as a newly listed public company answering to shareholders and returns. Any indication of slowing like how much deals have slowed down now, you are gone. While also holding significant debt that was used to payout assureco. If markets and economy keeps up with these declines, assureco is a safer place to be.

Which ever side, i would be the side that gives me the biggest salary and chances for promo, going to newco does not make you better, it’s the same exact job you have now.

What do you mean randomly assigned? The randomly assigned group of people is a small group, otherwise you already should know where you will be placed

This is such a dumb problem to have. Terrible for the organization as a whole. Employees will leave left and right. Who’s gonna be left to do the work??

Some have already left

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