New York (April 7, 2003) - On the heels of news that it abandoned plans to go private, Deloitte Consulting said that the firm’s chief executive, Douglas McCracken will retire when his term ends in June, according to media reports.
The company is reportedly looking for a replacement and expects to name a new CEO in a matter of weeks, Deloitte spokesman Peter Horowitz told reporters. Horowitz said the news of McCracken’s departure wasn’t a surprise, since McCracken had said he might relinquish his title after completion of the separation talks.
After saying for more than a year that it would take the firm private via a buy-out of the consulting group's partners, the firm reversed course, citing a tight credit market and shaky economic conditions, leaving parent firm Deloitte Touche Tohmatsu as the only Big Four accounting firm that hasn’t cut ties with its consulting practice.
The remaining Big Four firms all severed ties with their consulting units and renamed them in an effort to distance the consultancies from their accounting firm roots. Rival Ernst & Young sold its consulting practice to Paris-based Cap Gemini in May 2000. Competitor KPMG spun off its consulting arm in an initial public offering in Feb. 2001 and the group later renamed itself BearingPoint. Last fall, PricewaterhouseCoopers abandoned plans for an IPO and sold its consulting unit to IBM. Accenture, the former consulting arm of Andersen before the firms severed ties in August of 2000, went public in July 2001.
-- Electronic Accountant Newswire Staff
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