PwC Australia oversaw a culture that fostered a “whatever it takes” approach and created a chief executive office role that was unaccountable to the board, a new report has found.
Excessive power conferred on the CEOUnclear responsibilities and accountabilities creating gaps and risksPwC Australia oversaw a culture that tolerated the poor behaviour of partners if they were making the firm a lot of money, fostered a “whatever it takes” approach and created a chief executive office role that was unaccountable to the board, a new report has found.
PwC said in a detailed response to the report that it accepted the 23 recommendations and the firm had already begun work on improving its business, including bringing in new independent directors, improving oversight and transparency of siloed units within the business, and giving the board more power over the actions of the CEO and senior staff.
“Culturally, the generally accepted view is that the CEO “runs the show”. During a long period of commercial success, this has translated to a reluctance of partners to challenge the CEO, even at senior leadership levels,” the report said.“A powerful CEO can also contribute to “fluid” management practices and to decisions being made ‘out of the room’ or overridden. The overly collegial culture at PwC Australia has tended to amplify the power of the CEO.
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