Ernst&Young is intensifying its governance reform efforts in the United States, following the failure to spin off its audit and consulting business earlier this year, in order to give partners greater voice in the company's strategy.
Based on materials from an online live broadcast held for US partners last Thursday, the company outlined a proposal to establish a US independent committee consisting of five selected partners to nominate a group of candidates for a future governance board that will oversee US company strategy, risk management, and other areas.
All US partners will vote to elect members of the nomination committee. The nomination committee will determine three candidates for each vacant position on the aforementioned board of directors, which will then be voted on by all US partners.
The proposed governance framework proposed to US partners is aimed at giving them more say in the company. Based on these materials, the framework will adopt a more inclusive voting approach that reflects the voices of all partners.