It is a fact of life in the big four: you’re there to become a partner. This expectation May not be explicit Big Four culture, but the undercurrent is undeniable. If your every decision is not focused on becoming a “member of society”, your career is in perpetual danger. The raison d’être of your being is to achieve this status.

The mystique of the partnership is evaporating, and could alter the character and composition of the four major fundamentally. Yes, Mr. Dylan, The Times, they are a-changin ‘. The story, more and more executives speak quietly - never publicly - on what would be their next moves. These illicit conversations took place in hushed tones outside the office - often post a notice franc offered to younger staff members.

But where did you go?
Many executives consider vice president and C-posts instead of shooting for the partnership. Citing desires lifestyle (ie down the road), earning potential, and less politically environments, even more powerful executives are outside the exploration of the four major quarries.
In addition to these internal pressures upstream and well-have come concerns about resistance - and costs - of the partnership structure. Once upon a time, the partnership buy-in was seen as an investment opportunity intact. In recent years, however, have called this perception in question.

It all started with Enron.
Many consultants and accountants in our community are still in pain from the collapse of Andersen - especially ex-Andersen people who sought refuge in other Big Four. Professionals who have worked at Andersen, especially former partners, are perfectly aware of the risks inherent in the purchase in partnership. New partners, with less than five years as members of Andersen, were brutalized financially. Their acquisition of loans were secured with their partnership. The collapse of Andersen led to a negative situation for them; partners to hundreds of thousands of dollars and could not sell their shares to repay loans.

The same fear of wrinkles by KPMG, recently. The purpose of an investigation for selling abusive tax shelters, KPMG settled with the Ministry of Justice. The settlement included a fine of $ 456 million. While KPMG avoided the fate of Andersen, the fine is equivalent to about $ 300 for each mile of 1600 KPMG partners.

The declining interest in membership is strongly supported by any changes in the organization. BearingPoint and Accenture have abandoned the model of partnership, and now trade on public markets. Doubts about the protection of limited liability partnership model are behind the Big Four to consider incorporation - instead partnership.

Once recognized as an elite club in the accounting and consulting industries, key partnerships are losing their mystique. The companies themselves continue to provide the best services available on the market, but companies themselves are subject to change. Each partner in the hope to grow up to become a partner. The executives could taste - and not thinking about anything else.

The Big Four’s preferred structure is attacked from outside. Once considered an almost risk-free investment, we have learned from Andersen and KPMG the contrary. This investment risk is magnified by the erosion of protections afforded by the structure LLP. Greener pastures attract the talent of the partnership while the legal system establishes the headquarters of this venerable institution.