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PwC’s India head is lobbying for a seat on the Big Four’s global executive committee alongside its China counterpart, arguing that the rapid growth of its business and the growing importance of India’s economy deserves a place at the $53 billion top table.
Sanjeev Krishan, chairman of PwC India, has asked senior figures in recent months to be added to the firm’s influential network leadership team, people familiar with the matter told the Financial Times.
The move has sparked uproar at the accountancy and consultancy firm, with one senior figure familiar with the discussions saying that while the matter had not yet reached the level of “tension”, some within the network saw it as a “problem”. .
One partner said Krishan was “pushing very hard” for the seat, while another, who has held global and national leadership roles at the firm, said it was “highly unlikely” the Indian business would get a seat on the committee.
Like the other Big Four firms – Deloitte, EY and KPMG – PwC is managed as a global network of partnerships linked through a global entity. The company’s network leadership team sets the overall strategy and standards for its network in 151 countries.
The network’s leadership team currently consists of the company’s global chairman, the heads of its US, UK and Asia Pacific/China offices, as well as its head of Europe, who holds a position that can be rotated at the behest of PwC’s global board. .
“The size and composition of the PwC network leadership team is determined by the regulations that govern the network and by PwC’s global steering committee,” said a PwC International spokesperson. “There are currently no plans to add additional members to the network leadership team.”
The Indian firm’s lobbying underscores the sometimes contentious political maneuvering that occurs in the Big Four’s sprawling global networks and represents an early test for Mohamed Kande, the firm’s incoming global chairman.
It also comes as China’s PwC faces a crisis over audits of bankrupt developer Evergrande. One of the senior partners said: “India is very vulnerable at the moment because of what is happening with China.
Demand for professional services in India has grown rapidly in recent years due to Prime Minister Narendra Modi’s economic drive and the professionalization of the country’s economy.
The Indian firm was the fastest growing of the 21 largest PwC firms in the network last year, with revenue jumping by almost a quarter. The performance boosted PwC’s overall revenue growth in Asia Pacific, which was 7 percent slower than other major regions, driven by China. The Indian firm expects to cross $1 billion in revenue for the first time this financial year.
One person familiar with the Indian firm said it is well-positioned to continue its rapid growth thanks to the country’s expanding economy and its young, growing population. PwC’s China chief was added to the firm’s network leadership team in 2008 because it was then seen as the region with the most growth potential, according to one senior partner.
However, compared to some of the other regions, the Indian business remains small.
“When you look at their numbers, the home team [Indian business] it’s growing great, but from a very low base,” said a partner who has held global and national leadership roles. “To put them on the network leadership team, you’d have to put Canada, France and the Middle East as well. Suddenly, the network management team has 10 countries. That wouldnt work.”
PwC’s network leadership team, which met 25 times last year, is already set to be reshuffled early next month, with Kande, Marco Amitrano and Daniel Li taking up their respective PwC global, UK and Asia Pacific leadership positions. Paul Griggs, the firm’s new US head, joined the committee in early June.