(no subject)
And so it's back to work again. *sigh* There's never enough free time, eh? I didn't manage to tick off every item on my to-do list, but at least most of it got done.
Here's an article for any bored person who wants to know more about how auditors make big bucks (yeah right).
Lee Su Shyan
966 words
1 April 2007
Straits Times
English
(c) 2007 Singapore Press Holdings Limited
TOP accountants may draw big bucks, but with starting salaries of only
$2,200 per month for the thousand or so fresh accounting graduates who
start at accounting firms annually, only a rare handful - under 1 per cent
- will finally hit the big time.
After slogging away on public holidays and weekends and being at the beck
and call of clients, they only qualify for admission to the hallowed circle
of a firm's partnership in their mid-30s, earning in the $300,000 range.
If they can bring in clients to increase the profit pool, these high-flyers
are likely to hit senior partner level in their 40s. That's when the
serious money starts to roll in. With a larger share of the profit pie,
they will bring home nothing less than $1 million a year.
Their pay will continue rising annually until they retire, usually at 55,
which is the traditional retirement age in the industry. The relatively
early cut-off is partly to make way for fresh blood.
As accounting firms are set up as partnerships, the profits - after
expenses and salaries are settled - are shared among the dozens of
partners, based on a formula known only to those in the partnership. A firm
like PricewaterhouseCoopers (PwC) has some 80 partners out of more than
1,800 employees.
The last decade has been good to these partnerships. Back in 1998, there
were only some 400 listed companies but now there are around 700 listed
companies - all of which need audit checks.
Mr Gautam Banerjee, the managing partner of PwC, points out that compared
to 1998, there has been some consolidation in the accounting profession,
going from six firms to the Big Four now.
He adds: 'Accounting firms have also become multi-disciplinary firms,
offering a range of professional services. They have benefited from
Singapore being a global hub, serving a range of clients who are
international giants.'
Recent corporate scandals in the United States may have indirectly brought
down accounting firm Arthur Andersen, but the ensuing tightening of
accounting rules and standards has helped the survivors in the industry.
New laws passed as far away as the US have meant companies, even those
based here, need more checks and reviews from the auditors.
In Singapore, the deals keep getting bigger and more varied. Large IPOs
raising more than $100 million are no longer a rarity, with companies
hailing from China and elsewhere around the world. And with new financial
products like real estate investment trusts, the auditors' work is never
done.
Estimated salary range of top earners: Between $1 million and $6 million.
Oft-cited top earners: Chaly Mah, Deloitte & Touche's chief executive; Ong
Yew Huat, Ernst & Young's managing partner; Danny Teoh, KPMG's managing
partner; Gautam Banerjee, PwC's managing partner; Fang Ai Lian, chairman of
Ernst & Young; Nicky Tan, who set up his own boutique firm NTan Advisory.
This list could include other senior partners of these firms.
Who they are: The first four are the heads of the Big Four accounting firms
who go through the books of 85 per cent of all listed companies in
Singapore. Mrs Fang stepped down from the post of managing partner but has
stayed on as chairman.
Mr Tan set up shop on his own, making a reputation for himself after he and
his small team got creditors to accept a repayment deal for Indonesian
company Asia Pulp & Paper's US$12.2 billion worth of debt.
What you need to be in the top tier: One way is to join a global firm and
shine there; another is to find a niche market to specialise in.
'Someone who joins the PwCs of this world will find a firm with global
branding,' says a senior partner. This gives aspiring top earners an edge,
but there's no running away from burning the midnight oil and poring over
financial records and meeting deadlines. And, hopefully, a financial
scandal doesn't happen on your watch.
Dr Ernest Kan, vice-president of the Institute of Certified Public
Accountants of Singapore (Icpas) and a senior partner at a Big Four firm,
says of those aspiring to the big time: 'You have to be at the right place
at the right time. Having to work hard, and having the technical skill, is
a given.'
He adds: 'You must be able to handle the people who work for you and your
clients. And you must manage your bosses well - because they are the ones
who are going to eventually vote for you and decide if you make partner.'
All the top earners cut their teeth doing audit, but managed to prove that
they could manage people, manage clients and expand the business.
Taking a niche route will be akin to Mr Tan, who left a Big Four firm to
specialise in helping troubled companies.
Where the most money is: Many auditors start off at the Big Four firms and
move on to head finance divisions at listed companies, and do very well
too.
SingTel's incoming chief executive Chua Sock Koong, for example, earned
$1.44 million in 2005 as chief financial officer, while Keppel Corp's
finance director Teo Soon Hoe was paid between $2.5 million and $2.75
million in 2005.
For auditors who stay on at the Big Four, working on mergers and
acquisitions and advising on IT systems may be a quick path to partnership.
Point to consider: Accountants say they face big risks because they are
partnerships, not companies. Do a lousy job and watch the lawsuits roll in.
All the partners stand to lose all their capital, plus even their homes,
and end up bankrupts.
Here's an article for any bored person who wants to know more about how auditors make big bucks (yeah right).
Lee Su Shyan
966 words
1 April 2007
Straits Times
English
(c) 2007 Singapore Press Holdings Limited
TOP accountants may draw big bucks, but with starting salaries of only
$2,200 per month for the thousand or so fresh accounting graduates who
start at accounting firms annually, only a rare handful - under 1 per cent
- will finally hit the big time.
After slogging away on public holidays and weekends and being at the beck
and call of clients, they only qualify for admission to the hallowed circle
of a firm's partnership in their mid-30s, earning in the $300,000 range.
If they can bring in clients to increase the profit pool, these high-flyers
are likely to hit senior partner level in their 40s. That's when the
serious money starts to roll in. With a larger share of the profit pie,
they will bring home nothing less than $1 million a year.
Their pay will continue rising annually until they retire, usually at 55,
which is the traditional retirement age in the industry. The relatively
early cut-off is partly to make way for fresh blood.
As accounting firms are set up as partnerships, the profits - after
expenses and salaries are settled - are shared among the dozens of
partners, based on a formula known only to those in the partnership. A firm
like PricewaterhouseCoopers (PwC) has some 80 partners out of more than
1,800 employees.
The last decade has been good to these partnerships. Back in 1998, there
were only some 400 listed companies but now there are around 700 listed
companies - all of which need audit checks.
Mr Gautam Banerjee, the managing partner of PwC, points out that compared
to 1998, there has been some consolidation in the accounting profession,
going from six firms to the Big Four now.
He adds: 'Accounting firms have also become multi-disciplinary firms,
offering a range of professional services. They have benefited from
Singapore being a global hub, serving a range of clients who are
international giants.'
Recent corporate scandals in the United States may have indirectly brought
down accounting firm Arthur Andersen, but the ensuing tightening of
accounting rules and standards has helped the survivors in the industry.
New laws passed as far away as the US have meant companies, even those
based here, need more checks and reviews from the auditors.
In Singapore, the deals keep getting bigger and more varied. Large IPOs
raising more than $100 million are no longer a rarity, with companies
hailing from China and elsewhere around the world. And with new financial
products like real estate investment trusts, the auditors' work is never
done.
Estimated salary range of top earners: Between $1 million and $6 million.
Oft-cited top earners: Chaly Mah, Deloitte & Touche's chief executive; Ong
Yew Huat, Ernst & Young's managing partner; Danny Teoh, KPMG's managing
partner; Gautam Banerjee, PwC's managing partner; Fang Ai Lian, chairman of
Ernst & Young; Nicky Tan, who set up his own boutique firm NTan Advisory.
This list could include other senior partners of these firms.
Who they are: The first four are the heads of the Big Four accounting firms
who go through the books of 85 per cent of all listed companies in
Singapore. Mrs Fang stepped down from the post of managing partner but has
stayed on as chairman.
Mr Tan set up shop on his own, making a reputation for himself after he and
his small team got creditors to accept a repayment deal for Indonesian
company Asia Pulp & Paper's US$12.2 billion worth of debt.
What you need to be in the top tier: One way is to join a global firm and
shine there; another is to find a niche market to specialise in.
'Someone who joins the PwCs of this world will find a firm with global
branding,' says a senior partner. This gives aspiring top earners an edge,
but there's no running away from burning the midnight oil and poring over
financial records and meeting deadlines. And, hopefully, a financial
scandal doesn't happen on your watch.
Dr Ernest Kan, vice-president of the Institute of Certified Public
Accountants of Singapore (Icpas) and a senior partner at a Big Four firm,
says of those aspiring to the big time: 'You have to be at the right place
at the right time. Having to work hard, and having the technical skill, is
a given.'
He adds: 'You must be able to handle the people who work for you and your
clients. And you must manage your bosses well - because they are the ones
who are going to eventually vote for you and decide if you make partner.'
All the top earners cut their teeth doing audit, but managed to prove that
they could manage people, manage clients and expand the business.
Taking a niche route will be akin to Mr Tan, who left a Big Four firm to
specialise in helping troubled companies.
Where the most money is: Many auditors start off at the Big Four firms and
move on to head finance divisions at listed companies, and do very well
too.
SingTel's incoming chief executive Chua Sock Koong, for example, earned
$1.44 million in 2005 as chief financial officer, while Keppel Corp's
finance director Teo Soon Hoe was paid between $2.5 million and $2.75
million in 2005.
For auditors who stay on at the Big Four, working on mergers and
acquisitions and advising on IT systems may be a quick path to partnership.
Point to consider: Accountants say they face big risks because they are
partnerships, not companies. Do a lousy job and watch the lawsuits roll in.
All the partners stand to lose all their capital, plus even their homes,
and end up bankrupts.