KPMG appoints new CEO as massive job cuts loom

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The board of KPMG Australia has appointed John Sams as chief executive effective immediately as the embattled firm prepares to cut hundreds of employees to counteract the loss of business from the whistleblower scandal.

Sams is from the tax, corporate finance and infrastructure advisory side of KPMG’s business which has not been implicated in the scandal where some of the firm’s most senior executives allegedly accessed confidential client information to win new customers.

New KPMG CEO John Sams.

Independent Chairman Michael Ebeid AM said: “The Board believes that John has the strong attributes required to be the firm’s successful leader – including agility, courage and integrity. John has a clear mandate from the board: to strengthen leadership and culture, improve confidence with our people, clients, regulators, government and the Parliament, and focus KPMG on the areas where it can make the greatest contribution to our clients, people and stakeholders.

“John has the Board’s full support to decisively deliver the Action Plan, announced in June to address governance and integrity issues and build a stronger, more accountable firm.”

John Sams said: “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. The firm fell short of the standards rightly expected of us, and the accountability for these failures will continue to be implemented. We have serious work to do on our culture, our leadership and our governance and it will take resolve and endurance.

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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.