Scandal-hit accounting firm names new chief executive

A major accounting firm under intense scrutiny amid accusations it used confidential client information to win contracts, has appointed a new chief executive.

John Sams, KPMG Australia’s chief financial officer and chief operating officer, will take over as chief executive effective immediately, the firm announced on Tuesday.

Mr Sams said he would work to provide confidence to clients and the firm’s people, deliver on an action plan that KPMG Australia announced in June to address governance and integrity issues, and to engage constructively with a parliamentary committee and regulators.

“I do not underestimate the task ahead but commit to our clients and people that I am prepared to be courageous, take the tough decisions and lead the changes we need to set us on the right path,” Mr Sams said.

He takes over from Stan Stavros, who was named interim chief executive after Andrew Yates resigned in May following the whistleblower’s complaints that sensitive client data was being used to win auditing contracts.

Chairman Martin Sheppard followed him out the door in late June, along with two audit partners, shortly after a critical hearing in parliament.

“The firm fell short of the standards rightly expected of us, and the accountability for these failures will continue to be implemented,” Mr Sams said.

A search panel considered candidates from within KPMG Australia, its international network and externally before settling on Mr Sams, a partner at KPMG for over a decade.

“The board believes that John has the strong attributes required to be the firm’s successful leader – including agility, courage and integrity,” said Michael Ebeid AM, KPMG Australia’s new independent chairman.

Mr Sams has a clear mandate from the board to strengthen leadership and culture and to improve confidence with clients, regulators and government, he added.