Looking ahead, EY leaders have reached the decision to proceed with partner votes for the initiative to separate into two distinct, multidisciplinary organizations.
EY today announced consolidated global revenue 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 organization’s history with the highest growth seen in nearly two decades dedicated to the EY NextWave strategy to deliver long-term value for EY’s 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.
Insurance grew by 8.9% (local currency) and 6% (USD) to US$14.4b. Revenues from the Tax service line increased by 10.5% (local currency) and 7.9% (USD) to US$11.3b.
This year EY is investing 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 – part of a continued focus on providing high-quality audits and rapid response to changing expected from regulators, governments, standard setters, audit committees and boards.
In FY22 EY invested US$300m in training providing more than 59 hours of training per employee on average. The EY organization currently offers more than 250 learning accreditations – known as EY Badges – in various disciplines: including artificial intelligence (AI), blockchain, business impact, supply chain planning, DE&I and sustainable business practices, plus technical training in accounting and taxation.
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 with Hult’s EY Tech MBA. 95 people graduated from the EY Tech MBA and 10 people graduated from the first batch of Master’s in Business Analytics this year. In total, 130 people completed the Tech MBA and master’s programs. EY also opened the EY Tech University in Palo Alto, California, which delivers disruptive technology programs for senior executives and clients.
This year EY changed its approach to diversity and inclusiveness by explicitly including equity. Now called Diversity, Equity and Inclusiveness (DE&I), it drives the organization’s commitment to creating an inclusive environment and removing barriers to equitable outcomes so that everyone can thrive. EY continues to be a purpose-led organization with a culture strongly committed to DE&I.
In FY22 35% of partner, principal, executive director, and director (PPEDD) promotions were women. In total, there were more than 2,400 PPEDD promotions this year – the largest cohort for the EY organization.
To better understand and support the needs of EY’s people and ensure that hidden injustices are discovered and addressed, EY has expanded its self-identification (Self-ID) capabilities. These increasing choices for EY people to complete under ‘personal information’ give EY a deeper understanding of the EY population, reinforcing EY’s commitment to driving greater equality across the board. related to career development by monitoring and analyzing demographic trends and gaps.
EY leaders now recommend that the organization become two separate, multidisciplinary organizations. One will 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, serving the public interest and focusing on the CFO agenda and sustainability; and the other is a new global corporate entity consisting of Consulting, Strategy and Transactions (SaT), the majority of Tax, and managed services.
By taking this bold step, EY can better serve EY people, clients and wider stakeholders with a once-in-a-generation opportunity to change the future of professional services. This step will create better and more dynamic career opportunities; people can learn more, take on new roles and explore different mobility options.
This means more 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 also means more choice for clients for 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 a greater impact on the communities where we operate.
