KPMG boss steps aside after telling staff to 'stop moaning'

KPMG's UK boss has stepped aside after controversial comments he made to staff in a virtual meeting this week.

The accounting giant is now starting an investigation after Bill Michael told consultants to "stop moaning" and accused them of behaving like victims about the impact of Covid-19 on their working lives.

In a virtual meeting on Monday members of the accountant's financial services consulting group expressed concern about potential cuts to pension contributions, pay and bonuses, the Financial Times reported. They also said they were unhappy about a rating system ranking team members from best to worst.

A KPMG UK spokesperson on Thursday said: “Following the meeting on 8 February, the firm initiated an independent investigation into the alleged comments in accordance with its usual procedures.”

“Mr Michael has decided to step aside from his duties as chair while the investigation is under way. We take this matter very seriously and will not comment further while the investigation is ongoing.”

KPMG has asked board member Bina Mehta to step in as chairman in the interim.

Michael, who has chaired the big four firm since 2017, told the consultants to "stop moaning" and "playing the victim card", according to a report citing two employees. Anonymous comments on a staff app brought up Michael's recently announced £1.7m pay package.

In a subsequent email to KPMG's staff, Michael said: "I know that words matter and I regret the ones I chose to use today. I think lockdown is proving difficult for all of us. I am very sorry for what I said and the way I said it."

He said after being hospitalised with Covid-19 in March he should have thought more carefully about the impact the crisis was having on KPMG's workers. The firm has been cutting jobs in the past year and was reported to be considering reducing staff pension contributions.

One employee told the FT Michael's comments were "incredibly insensitive" at a time of crisis. Another said his language was "far too blunt" but that his motivation was good.

A KPMG spokesperson told the FT the firm had supported employees during the pandemic, including with extra mental health resources, and that bonuses would be paid in March. Employees who had been promoted or passed exams had received pay rises and there were "no plans" to cut pension contributions, the firm said.