Bill Michael quits as chair of KPMG UK after telling staff to 'stop moaning'

Bill Michael has been forced to quit as chairman of KPMG UK just days after telling staff to “stop moaning” about their work conditions during the pandemic.

Michael said on Friday that his position had become “untenable” after shocking KPMG staff this week at a virtual meeting with comments that included describing discrimination caused by unconscious bias as “complete and utter crap”. 

According to staff, Michael also said that he had met clients for coffee during the current UK lockdown, which some felt was encouragement to break the rules.

“I am truly sorry that my words have caused hurt amongst my colleagues and for the impact the events of this week have had on them,” Michael said in a statement on Friday.

“In light of that, I regard my position as untenable and so I have decided to leave the firm. It has been a privilege to have acted as chair of KPMG.”

Michael, a 52-year-old Australian who has been with KPMG for 30 years, stepped aside this week while the Big Four accountancy firm investigated “alleged comments” he made during an online meeting with staff. The firm has hired City law firm Linklaters to carry out an independent investigation. 

The resignation came after the Financial Times reported comments made by Michael at a meeting with the firm’s financial services consultancy team on Monday where he told staff to “stop moaning” and “playing the victim card”.

These comments - alongside the perceived dismissal of unconscious bias - angered staff, who complained that some of them had not seen family in months, or lost people they are close to, while others were working in difficult home circumstances or juggling work with home schooling. 

But the speed of the exit has still shocked KPMG staff. Michael handed in his resignation on Thursday night to the KPMG board. KPMG’s 582 partners and then staff were told on Friday morning. No details were given over the financial terms of Michael’s departure.

“Its a mixture of shock and sadness,” said one insider on Friday morning. 

Michael split opinion within the firm, winning loyalty among many for his no-nonsense approach and strong-handed leadership after a series of accounting scandals and ahead of sweeping audit reform in the UK.

But these qualities also led to criticism from staff who saw this approach as old-fashioned and abrasive - out of step with the efforts being made within the City to create a more inclusive environment.

A former director said: “Bill would probably describe himself as blunt, direct and to the point, which could equally be described as forceful, aggressive and ‘I’m in charge and you will listen to me’.”

But he added that his former colleagues agreed he had to go: “[They] don’t want him back.” 

Another former partner said: “He was seen as very tough, as old school, and as very direct, and some people felt the firm needed that and wanted that level of control. Other people saw him as completely counter culture and did not want him taking the firm in a cultural direction they did not want it to go in.”

Michael has been temporarily replaced by two female partners: Bina Mehta has become chair and Mary O’Connor has taken on the role of senior partner. They are the first women to occupy those roles in the history of the firm. 

KPMG will hold an election by partners “in due course”, according to the firm, with Michael expected to stay to hand over to the new team by the end of February.

Among the names being floated as potential contenders are John Holt, head of audit, Dan Thomas, head of corporates, and Chris Hearld, head of regions.

But some current and former staff say that the board should consider appointing its first female chair, pointing to a strong list of candidates such as Lisa Heneghan, chief digital officer, UK audit chair Michelle Hinchliffe, O’Connor, chief risk officer, Melissa Geiger, head of international tax, or Linda Main, head of UK capital markets.

Mehta said: “Bill has made a huge contribution to our firm over the last thirty years, especially over the last three years as chairman, and we wish him all the best for the future.”