As the saying goes, “too many cooks spoil the broth,” but what happens when it’s not just one or two extra chefs in the kitchen, but rather a fundamental disagreement between two key players? That’s exactly what happened at Baker Tilly, where the board and CEO found themselves at odds over their vision and values. In this blog post, we’ll explore how this clash played out and what lessons we can all take away from it. So grab a cup of coffee (or tea!) and let’s dive in!
What is Baker Tilly?
What is Baker Tilly?
Baker Tilly is a global accounting and advisory firm. The firm has over 30,000 employees in over 150 countries. Baker Tilly is headquartered in London, England.
The firm provides a variety of services, including audit and assurance, tax, consulting, risk advisory, and transaction advisory. Baker Tilly also has a strong focus on sustainability and corporate social responsibility.
In recent years, there has been tension between the Board of Directors and the CEO of Baker Tilly. The Board is composed of mostly independent members, while the CEO is an employee of the firm.
There have been disagreements about the direction of the company, with the Board wanting to focus on short-term profitability and shareholder value, and the CEO wanting to invest in long-term growth.
The CEO has also been critical of some of the Board’s decisions, including approving large bonuses for senior executives while cutting costs elsewhere in the company.
The conflict came to a head in 2020 when the Board voted to replace the CEO with an interim leader. The move was widely seen as a victory for the Board’s vision for the company.
Who are the Board and CEO?
The Baker Tilly Board of Directors consists of eight members, four of whom are independent. The Board provides oversight for the Company’s executive management team and is responsible for setting the strategic direction of the Company.
The CEO is the highest-ranking executive in the company and is responsible for its overall operation and performance. The CEO reports to the Board of Directors.
The Baker Tilly Board vs. CEO: A Clash of Vision and Values
In early 2020, the board of directors at Baker Tilly Virchow Krause, LLP (Baker Tilly) ousted then-CEO John Cloutier amid concerns over strategy and leadership. This event marked a significant shakeup in the industry, as it’s rare for a board to remove a sitting CEO. So, what caused this clash between the board and CEO, and what does it mean for the future of Baker Tilly? Let’s take a closer look.
The problems started arising in late 2019, when Baker Tilly announced plans to merge with another accounting firm, Moore STEPHENS North America, Inc. (Moore Stephens). The deal was meant to create a top 10 accounting firm with over $4 billion in combined revenue. However, many shareholders were concerned about the high price tag and lack of clarity aroundthe strategic rationale for the deal. In addition, there were concerns that the cultures of the two firms would not mesh well together. As a result, shareholders pressured the
What is the conflict about?
The conflict between the Baker Tilly Board and CEO is one of vision and values. The Board believes that the company should be focused on its core accounting and auditing business, while the CEO believes that the company should diversify into other areas such as consulting and financial advisory services.
The Board has been resistant to the CEO’s plans to diversify the company, and has even gone so far as to try to oust him from his position. However, the CEO has fought back and has vowed to continue pursuing his vision for the company.
It remains to be seen how this conflict will ultimately play out, but it is clear that there are two very different visions for the future of Baker Tilly.
What does each side want?
When it comes to the Baker Tilly board vs. CEO conflict, each side wants different things. The board wants stability and a return to traditional values, while the CEO wants innovation and progress.
The board is made up of mostly older, white men who are resistant to change. They want to keep the company the way it is, with a focus on traditional accounting and auditing services. They believe that this is what has made Baker Tilly successful in the past, and they see no reason to change now.
The CEO, on the other hand, is younger and more progressive. He believes that the company needs to innovate in order to stay relevant and competitive in the future. He has proposed a new vision for the company that includes expanding into new markets and developing new services. This clash of vision and values is at the heart of the conflict between the board and CEO of Baker Tilly.
How could this conflict be resolved?
There are a few potential ways to resolve the conflict between the board and CEO of Baker Tilly. One option is for the CEO to step down from their position, which would allow the board to appoint a new leader who aligns with their vision and values. Another option is for the board and CEO to come to a compromise about the company’s direction, though this may be difficult given their opposing views. Finally, the shareholders could vote to replace either the CEO or the entire board, depending on who they believe is at fault for the current impasse.
Conclusion
The clash between the Baker Tilly Board and the CEO demonstrates how important communication is for a successful relationship between these two entities. Without effective dialogue, it’s easy for miscommunication to arise and result in conflict. It’s essential that both parties make an effort to effectively communicate their vision and values so that all stakeholders can benefit from this partnership. With clear communication in place, we can expect more fruitful outcomes for organizations like Baker Tilly in the future.
