New York (July 8, 2004) -- Richard Rosenthal, KPMG's chief financial officer since 2002, will retire from the firm, a spokesman for the Big Four firm confirmed.
Rosenthal, a KPMG veteran since 1978 who served as vice chairman of tax operations for two years before becoming CFO in 2002, is the latest executive to depart the firm amid ongoing investigations by the Internal Revenue Service and the Justice Department into the Big Four firm's past tax shelter activities.
Back in January, KPMG announced a management shakeup that included the retirement of former deputy chairman Jeff Stein and the replacement of two of its top tax executives following IRS and congressional scrutiny into its past shelter activities. The probes came after a November 2003 report compiled by a Senate government affairs subcommittee showed that KPMG collected roughly $124 million in fees from shelters from 1997 through 2001 -- shelters that the report estimated cost the federal government about $1.4 billion.
Rosenthal, 48, also stepped down as the firm's chief administrative officer and gave up his seat on the firm's management committee, a KPMG spokesman confirmed. The firm wouldn't comment on the reason for his departure.
Rosenthal's resignation was reportedly announced in an e-mail from KPMG chairman Gene O'Kelly to the firm's partners Monday night, according to The Wall Street Journal. In the e-mail, O'Kelly reportedly wrote that Rosenthal "has decided to seek an opportunity in the corporate community," and that he is expected to stay at the firm through the end of the year, the Journal said.
According to O'Kelly's e-mail, deputy chairman Joseph Mauriello will serve as interim chief financial officer and chief administrative officer, the Journal reported. According to the report, the firm expects to announce a new finance chief by Sept. 1. The e-mail reportedly said that Rosenthal would assist Mauriello "until a successor is appointed, and then assist the new CFO" to ensure an orderly transition.
-- Melissa Klein Aguilar
