KPMG chair resigns amid whistleblower fallout

KPMG's chairman, Martin Sheppard, is stepping down from his role, along with two audit partners, Paul Rogers and Eileen Hoggett. Their departures follow a scandal concerning the misuse of confidential client information and the alleged mistreatment of a whistleblower.

Sheppard will leave the firm shortly and retire from his regional board responsibilities. The accounting and consulting giant announced that it would appoint its first independent chair after a brief transition period to ensure a smooth handover. This move comes after revelations that KPMG partners improperly accessed confidential pitch documents submitted by rival firms to the board of property giant Lendlease.

In response to the fallout, KPMG stated it would also add independent directors to its Australian board as part of a significant governance overhaul. New board subcommittees will be established to oversee critical areas such as audit quality, ethics, and whistleblower matters. Interim chief executive Stan Stavros acknowledged the firm had fallen short of expected standards, stating, "We did not meet the standards expected of us, and we recognise the impact this has had on the whistleblower, our people, our clients and the community."

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The decisions announced today are necessary and immediate. We did not meet the standards expected of us, and we recognise the impact this has had on the whistleblower, our people, our clients and the community.