Leadership & governance
Strength in management and leadership
At the start of DTTL's 2012 fiscal year on 1 June 2011, Barry Salzberg and Steve Almond began their four-year terms of office as DTTL's Chief Executive Officer and Chairman of the Board, respectively.
As CEO of DTTL, Barry Salzberg has executive authority for the management of DTTL. He leads and manages the DTTL Executive and sets the strategic course of DTTL. The 20-member Executive that was appointed during FY2012 comprises senior DTTL and member firm leaders.
Steve Almond is Chairman of the DTTL Board of Directors, DTTL's highest governing body. The Board's 32 members, appointed in FY2012, represent 15 countries, Deloitte's three major regions, and three clusters of medium- and smaller-sized member firms. Among the Board's committees is a standing Governance Committee, which is responsible for oversight of DTTL's management.
Strong governance and leadership structures, established in accordance with generally accepted standards, help make it possible for Deloitte member firms to maintain high levels of quality and integrity and sustain the trust of their clients, their people, the capital markets, and the public. As a global network comprising DTTL, its member firms, and their affiliates in more than 150 countries and locations, Deloitte has governance and management structures in place at both the global and member firm levels.
The DTTL Executive
The DTTL chief executive officer is ratified by the partners of DTTL's member firms and serves a term of four years. The DTTL chief executive officer (CEO), currently Barry Salzberg, chooses the members of the Executive subject to approval by the Governance Committee of the board of DTTL.
The 20-member Executive comprises DTTL's most senior leaders. It is responsible for establishing DTTL's vision and strategy. With members from various regions around the world, the group works in a collegial style and reaches decisions through consensus.
The DTTL Board
The Board of Directors is DTTL's highest governing body. Currently chaired by Steve Almond, the Board addresses DTTL's most important governance issues, such as global strategies, major transactions, and the election of the CEO.
Board members are appointed by individual member firms that are themselves selected based on size, the number of significant clients they serve, and other factors. The board also includes three regional seats, ensuring that smaller member firms are represented. Other than the DTTL CEO, all members of the DTTL Board are executives or board members of their member firms. Determinations regarding the allocation of DTTL Board seats are made every four years with an interim review after two years. The board is constructed to be multicultural with proportionate representation of member firms. During FY2012, directors were drawn from 21 member firms, covering over 60 countries. Currently there are two women among the 32 board members. As directors are appointed by member firms rather than by the Board, the Board is not able to directly manage gender diversity
The board has a standing Governance Committee, which is responsible for oversight of DTTL's management. Like the Board of Directors, the Governance Committee is multicultural, with one seat allocated to each of the 12 member firms that have the greatest impact on the network. It engages in open discussions of issues and matters within its purview. Each committee member has one vote on matters considered by the committee, except for the CEO, who is ex-officio. To avoid conflicts of interest, no member of the Governance Committee may also serve on the Executive, except for the CEO.
The Board has other committees that coordinate and recommend action on a wide scope of financial, administrative, economic, environmental, and social issues. These other committees include Board Composition, Succession, Risk, Audit & Finance, Membership Affairs, and CEO & Chairman Evaluation & Compensation.
Member firm leadership
To foster effective and responsive management within member firms, DTTL has adopted standards describing specific leadership and governance structures to be implemented by member firms, including:
- A managing partner, senior partner, or equivalent who is responsible for managing the member firm and ensuring that the firm delivers high-quality services in accord with professional standards and DTTL policies
- A governing body, such as a board of directors or board of partners, to facilitate sound governance of the individual practice, implementation of local rules and regulations, and implementation of DTTL policies and procedures
- A representative to serve as a liaison to DTTL and to represent the member firm at the DTTL World Meeting, held annually to discuss strategy and initiatives proposed by DTTL management and to vote on specific DTTL matters, such as approval of Board members, financial statements, voting entitlements of the member firms, and changes in the governing documents