Under the leadership of Tim Flynn, Chairman and CEO of KPMG, the firm has made a number of changes in compensation, governance and culture in order to address the root causes for the actions that took place before it became CEO, which led to huge accounting pay $ 456 million the federal government for alleged illegal sale of tax shelters. These changes included a total prize fund of compensation for the entire company and rewarding people for their professionalism and for the development of business, to strengthen governance by adding lead director to the board, removing the chairman and deputy chairman of the selection board members, and the establishment of separate committees for professional practice, ethics and compliance, and operations, as well as ethics and compliance programs through their human resources processes (eg, recruitment, orientation, training, and exit interviews), the implementation of periodic and necessary ethics courses, the active management of the company in the training, and the creation of multiple channels of communication for employees to raise concerns with a clear "no retaliation" policy. In January 2007, 86% of employees are proud to work for the company, compared to 60% in 2005. Staff turnover has been at a record low. And tax practices, the source of the problem, was the fastest growing such a practice in the big four accounting firms by 18%. "Hide
by Robert G. Eccles, Elliot Sherman Source: Harvard Business School 4 pages. Publication Date: 08 January 2009. Prod. #: 409075-PDF-ENG
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