Looking ahead, EY leaders have reached the decision to move forward with partner votes for the initiative to separate into two distinct, multidisciplinary organizations
EY today announces combined global revenues of US$45.4b for the financial year ending June 2022 (FY22), an increase of 16.4% in local currency (13.7% in US dollars). This marks one of the most successful years in the history of the organization with the highest growth seen in nearly two decades attributed to the EY NextWave strategy to deliver long-term value for EY people, clients and society.
All EY service lines recorded strong revenue growth in FY22. Consulting experienced exceptional growth of 27.1% (local currency) and 24.5% (USD) to US$13.9b. Strategy and Transactions also grew by a significant 25.4% (local currency) and 22.8% (USD) to US$5.9b.
Assurance grew by 8.9% (local currency) and 6% (USD) to US$14.4b. Revenues from the Tax service line rose by 10.5% (local currency) and 7.9% (USD) to US$11.3b.
This year EY invested US$3.2b in audit quality, innovation, technology and people – part of a US$10b three-year commitment announced in FY21. This includes US$1b in a next- generation assurance technology platform – which is part of a sustained focus on providing high-quality audits and responding rapidly to changing expectations from regulators, governments, standard setters, audit committees and boards.
In FY22 there were EY investments of US$300m in training which delivered more than 59 hours of training per employee on average. The EY organization now offers more than 250 learning accreditations – known as EY Badges – across a range of disciplines: including artificial intelligence (AI), blockchain, impact entrepreneurship, supply chain planning, DE&I and sustainable business practices, in addition to technical training in accounting and tax.
This year EY announced two new master’s degrees in collaboration with Hult International Business School. The new qualifications – in Business Analytics and Sustainability – are open and free to all EY people alongside the EY Tech MBA by Hult. 95 people graduated with an EY Tech MBA and 10 people graduated in the first cohort of the Master’s in Business Analytics this year. Cumulatively, 130 people have graduated from the Tech MBA and master’s programs. EY also opened the EY Tech University in Palo Alto, California, delivering programs in disruptive technology for senior executives and clients.
This year EY evolved its approach to diversity and inclusiveness by explicitly incorporating equity. Now referred to as Diversity, Equity and Inclusiveness (DE&I), this furthers the organization’s commitment to creating an inclusive environment and removing barriers to equal outcomes so everyone can thrive. EY continues to be a purpose-led organization with a culture that is strongly committed to DE&I.
In FY22 35% of partner, principal, executive director, and director (PPEDD) promotions were women. Overall, there were more than 2,400 promotions to PPEDD this year – the largest ever cohort for the EY organization.
To better understand and support the needs of EY people and ensure hidden inequities are uncovered and addressed, EY expanded global self-identification (Self-ID) capabilities. This increased range of choices for EY people to complete under ‘personal information’ provides EY with a deeper understanding of the EY population, strengthening EY’s commitment to driving greater equity in areas relating to career development by monitoring and analyzing demographic trends and gaps.
EY leaders have now recommended that the organization evolves into two distinct, multidisciplinary organizations. One would be a global network of multidisciplinary member firms committed to assurance, tax and advisory services with all the capabilities required to deliver high-quality audits, serve the public interest and focus on the CFO agenda and sustainability; and the other would be a new global corporate entity comprising Consulting, Strategy and Transactions (SaT), the majority of Tax, and managed services.
In taking this bold step, EY can better serve EY people, clients and broader stakeholders in a once in a generation opportunity to redefine the future of professional services. This move will create better and more dynamic career opportunities; people can learn more, take on new roles and explore different mobility options.
It would mean increased access to capital to reinvest in people and client services and solutions, with a laser focus on the issues that matter most to clients and stakeholders.
It would also mean more choice for clients for both audit and transformation services, and an even stronger focus on ESG priorities, as well as more opportunities to develop new corporate responsibility programs – such as co-investments in “green” projects – so that we can make an even bigger impact in the communities in which we operate.