KPMG Australia CEO appoints Eileen Hoggett’s replacement

As reported by the Australian Financial Review, KPMG Australia chief executive John Sams has appointed three senior partners to key leadership roles.

Gayle Dickerson, who has been managing partner – deal advisory and infrastructure at the firm since July, has been appointed as chief operating officer and chief financial officer. She will be replacing Eileen Hoggett and Sams himself respectively in those roles, and previously led the turnaround and restructuring practice at the firm.

Senior partner Pete Turner has replaced Dickerson as head of deal advisory and infrastructure.

Hoggett was at the centre of KPMG Australia’s alleged audit misconduct scandal for her role in the alleged mishandling of confidential documents relating to the Lendlease audit, which were retained in a locker at KPMG’s Sydney office.

During a parliamentary hearing in August, Hoggett was grilled about her role, where she eventually admitted that she wrote an email to her personal assistant about the confidential documents that said: “I think we confidently allow him to look at the printed version in my locker when he [director on the Lendlease audit] is back in Sydney. He needs to do it sensitively without letting too many people know [smiley face emoji].”

Hoggett launched legal proceedings against KPMG in the Supreme Court of NSW after the firm expelled her from the partnership (the only partner to be expelled) following evidence uncovered by Allens in its investigation into alleged audit misconduct.

Sams made other appointments too, including head of tax and legal Ben Travers in the new role of deputy executive, and regional head of quality and risk management Jeff Cook as chief risk officer.

Dickerson, Travers, and Turner will take on the new roles immediately, while Cook will transition into his role after handing over his regional responsibilities, according to the Australian Financial Review.

Sams said in an email to partners that executive search firm Spencer Stuart assisted with the appointments.

While Dickerson (who is responsible for leading the retrenchments) said the role would require being “disciplined with our finances, honest about what’s working and what isn’t”, Travers said his objective is to grow “a culture built on trust and accountability” for partners and staff.

The senior appointments have followed the AFR’s reporting that KPMG Australia is set to axe up to 400 staff by the end of November “as the fallout continues from its document misuse scandal”.

Reports of the job cuts followed an agreement by the Department of Finance to further extend the pause on KPMG bidding for Australian government work until 28 February 2027.

KPMG Australia is expected to provide the department with an implementation plan, and the first of its quarterly progress implementation reports.

The independent review of KPMG Australia by the Department of Finance found that the firm’s response to whistleblower allegations of audit misconduct and alleged misuse of confidential information was misguided, fragmented and prolonged, and also lacked clear ownership.

KPMG Australia has seen a mass audit client exodus in the last few months, including ANZ, Lendlease, Macquarie Bank, and IAG.

The scandal has claimed the scalps of several former senior leaders, including former CEO Andrew Yates, former chairman Martin Sheppard, former national managing partner of audit and assurance Julian McPherson, and audit partners Kim Lawry and Paul Rogers. Lawry departed the big four accounting firm after Westpac demanded that she be removed from its file.