EY: A Global Leader in Professional Services and Consulting
EY (formerly Ernst & Young) is a preeminent global professional services organization and a member of the "Big Four" accounting firms. Operating as a private company limited by guarantee, EY provides a comprehensive suite of assurance, tax, consulting, and strategy services to clients worldwide. Headquartered in London, England, the firm leverages a massive global network to drive digital transformation and financial stability for businesses of all sizes.
The firm's current leadership is headed by Janet Truncale, who serves as the global chair and CEO. With a workforce of 392,995 employees as of 2024, EY has established itself as a cornerstone of the global financial infrastructure, reporting a staggering revenue of US$ 51.2 billion for the 2024 fiscal year.
Key Facts
- Founded: 1989 via the merger of Ernst & Whinney and Arthur Young & Co. (with roots dating back to 1849).
- Global Revenue: US$ 51.2 billion (2024).
- Workforce: 392,995 employees (2024).
- Headquarters: London, United Kingdom.
- Core Divisions: Assurance, Consulting, Tax, and Strategy and Transactions.
- Key Subsidiary: EY-Parthenon.
Evolution and History
The modern entity known as EY was formed in 1989 through the merger of two storied firms: Ernst & Whinney and Arthur Young & Co. While the merger created the current structure, the oldest components of the firm trace their origins back to 1849.
Over the decades, the firm has expanded through strategic acquisitions and network growth. In 2006, EY became the only Big Four firm to operate two member firms in the United States after including Mitchell & Titus, LLP, the nation's largest minority-owned accounting firm (a membership that concluded in 2015). The firm also underwent a significant rebranding in 2013, transitioning its trade name from Ernst & Young to the more concise EY.
Recent expansion efforts have focused on technology and regional hubs. In 2018, the firm invested $4.4 million in a professional services center in Louisville, Kentucky, and announced a dedicated IT and tech hub in Nashville, Tennessee, to bolster its regional capabilities.
Service Offerings and Organizational Structure
EY organizes its operations into four primary service lines, designed to cover the entire lifecycle of business management and regulatory compliance.
Core Service Lines
- Assurance: Focused on auditing and financial reporting to ensure transparency and trust in financial statements.
- Tax: Providing tax advisory and compliance services to navigate complex global tax laws.
- Consulting: Helping businesses with digital transformation, cybersecurity, artificial intelligence, and information technology.
- Strategy and Transactions: Offering financial advisory and strategic guidance, often delivered through the subsidiary EY-Parthenon.
Specialized Support Services
Beyond its client-facing divisions, EY maintains internal support structures including People Advisory Services, which manages HR, immigration, and workforce mobility, and Core Business Services, which handles marketing, legal, and risk management.
The firm's global reach is evidenced by its presence in diverse markets, from major financial hubs to emerging economies.
Financial Performance Trends
EY has shown consistent growth in its service delivery over the last decade. The following table illustrates the growth in revenue (in millions) across its primary divisions from FY16 to FY25 (projected/actuals).
| Division | FY16 | FY20 | FY24 | FY25 |
|---|---|---|---|---|
| Assurance | 11,301 | 12,821 | 17,299 | 17,877 |
| Tax | 7,751 | 9,765 | 12,080 | 12,707 |
| Consulting | 7,846 | 10,467 | 15,606 | 16,400 |
| Strategy & Transactions | 2,728 | 4,181 | 6,236 | 6,235 |
| Total | 29,626 | 37,234 | 51,221 | 53,219 |
Challenges and Controversies
Like many large professional services firms, EY has faced significant legal and ethical challenges. In 2020, the firm was scrutinized for failing to uncover $2 billion in missing funds at the German fintech company Wirecard AG, leading to lawsuits and a Bundestag investigation that cited serious audit shortcomings.
The firm has also dealt with regulatory penalties, including a $100 million SEC penalty for employees cheating on CPA ethics exams. Additionally, the firm has faced criticism regarding its workplace culture, including a culture review by Elizabeth Broderick & Co. and reports of excessive workloads in its Indian offices.
Corporate Social Responsibility and Partnerships
EY is well-known for its Entrepreneur Of The Year awards and the Winning Women program, which supports female founders in shattering the entrepreneurial glass ceiling.
In the realm of sports and arts, EY has maintained high-profile partnerships, serving as an Official Partner to the 2012 and 2014 Ryder Cups, partnering with the British and Irish Lions, and maintaining a relationship with Tour de France winner Cadel Evans.
Frequently Asked Questions
When was EY founded?
EY was formed in 1989 through the merger of Ernst & Whinney and Arthur Young & Co., although some of its predecessor components date back as far as 1849.
Who is the current CEO of EY?
The current global chair and CEO of EY is Janet Truncale, effective July 1, 2024.
What are the main services provided by EY?
EY provides services across four main areas: Assurance (auditing), Tax advisory, Consulting (including AI and Cybersecurity), and Strategy and Transactions.
What is EY-Parthenon?
EY-Parthenon is a subsidiary of EY that specializes in strategy consulting.
How many employees does EY have?
As of 2024, EY employs 392,995 people worldwide.