Accountancy group KPMG is overhauling its remuneration strategy for partners and boosting the independence of its supervisory board following a string of scandals.
The aim is to ‘win back the trust of stakeholders’, the company said in a news release on Friday. The plan was approved by partners at a closed meeting on Thursday.
In the new set up, partners’ remuneration will be linked to ‘the realisation of quality requirements, the motivation of employees and client satisfaction’. Profit shares will be spread out over several years and can be reversed if problems come to light.
The current bonus system is being scrapped and individual partners will only be rewarded for ‘exceptional performance’. The management board will no longer be eligible for profit sharing. They, instead, will have a fixed salary with a performance-related bonus of up to 10%.
KPMG is also looking for new external candidates for its supervisory board, which is currently made up of partners. Chairman Jan Hommen said the company ‘wants to take major steps right now, leave the past behind and build on a new future. For our clients, for society and for our own people.’
KPMG Nederland has been hit by a string of scandals in recent months, culminating the resignation of chairman Jurgen van Breukelen in May.
Van Breukelen had been in the firing line over possible tax fraud in connection with the company’s new headquarters in Amstelveen, bribery allegations and a string of other issues at client companies.