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The firm has enlisted the help of the former NSW premier to shore up governance amid ongoing scrutiny of the sector.
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Mike Baird to join KPMG board as independent director
25 January 2024
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KPMG has appointed former NSW premier Mike Baird as an independent director to strengthen governance and add parliamentary experience to its board amid ongoing scrutiny of the big four firms.
The firm also named experienced executive Jane Hemstritch as a replacement for its inaugural independent director Martin Dalgleish.
Mr Baird and Ms Hemstritch would join current member Patty Akopiantz, bringing the total number of independent directors to three.
KPMG national chairman Martin Sheppard said the firm’s independent board members played an “important role in strengthening” its governance by offering external perspectives.
“I am delighted to welcome Jane and Mike to our board – both experienced leaders of high standing, each with strong reputations for integrity and values,” he said.
Ms Hemstritch was a “leading member of Australia’s business community” with experience on boards at Accenture, Commonwealth Bank and Telstra.
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Mr Baird is the chairman of Cricket Australia and has held senior roles at NAB, Deutsche Bank and HSBC. He became Treasurer in 2011 and leader of the NSW Liberal Party and premier in 2014.
“Mike’s distinguished career across the public and private sector is rare and positions him to provide our board with unique insight and challenge,” Mr Sheppard said.
“His government expertise, understanding of regulatory drivers and parliamentary processes is a valuable addition to the board”.
He most recently worked in the aged care sector as CEO of HammondCare and would “commence shortly” at KPMG “as soon as his remaining responsibilities at HammondCare allow”, the firm said.
Mr Sheppard said all three of KPMG’s independent directors held “a strong belief in the importance of purpose, principles and values-driven leadership, and have made strong contributions to community service and philanthropy”.
The appointments ensured KPMG had “contemporary skills around the board table to provide the agility required to respond to a rapidly changing environment”, he said.
KPMG’s efforts to shore up internal governance come after the firm faced intense scrutiny during parliamentary inquiries sparked by the PwC tax leaks scandal last year.
Doubts over the independence of its directors were raised in September by Greens senator Barbara Pocock after CEO Andrew Yates told the Senate they were paid “in the ballpark of $100,000”, on par with “quite a junior level of staff”.
“The much vaunted term independent director doesn’t really stack up,” Ms Pocock said.
“I'm being paid $100,000 to sit here with board members and a CEO who is on $4 million, $5 million, $6 million or $7 million. How independent do I really get to be?” she asked.
Mr Yates said such arrangements were not a unique situation in the corporate sector.
KPMG said following the appointments of Mr Baird and Ms Hemstritch, its board would comprise chairman Martin Sheppard, CEO Andrew Yates, seven directors, and three independent directors.
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