March 2014

ConnectThe magazine for EY alumni The buck stops here!

A look at leadership through the eyes of three alumni CEOs: Monique Leroux, Cindy Taylor and Michael Strianese

Mark Weinberger Shaping the vision Randy Lewis No greatness without goodness Also featuring Also Alice Schroeder Outside her comfort zone Dave Kautter and Cindy Rooks Many happy returns © 2014 EYGM Limited. All Rights Reserved.

It takes a certain kind of person to to person kind of a certain It takes Someone world. working build a better work can that the world who believes one project at a time, — one client better them? be one of you Could at a time. ey.com/careers. Visit Could you be one of you Could the architects of a of the architects world? working better elcome EY alumni

One of my greatest pleasures is watching people I know W develop into leaders — both inside and outside of EY. In this issue of Connect, we talk to EY alumni Monique Leroux, Michael Strianese and Cindy Taylor — all CEOs of major corporations — on the subject of leadership. What does it mean to them? What are the challenges? How are they nurturing the next generation of leaders? While their approaches to leadership may vary, our three CEOs agree on two things. First, while they find being CEOs intensely rewarding, it also means that, Stephen R. Howe Jr. within their respective organizations, the buck really does stop with them. Second, all three unequivocally trace their leadership roots to the values, skills, mentoring and experiences they acquired while at EY. I could not be more proud. Also in this issue we introduce a new section: Building a better working world. Here, we tell the story of an EY alum doing something extraordinary in improving the world around us. Every day I hear about the many things our alumni are doing to help build a better world. However, I encourage you to read the amazing story of the vision, courage and compassion of Randy Lewis, recently retired senior vice president at Walgreens, and how his efforts there continue to benefit the disabled. I was inspired and think you will be, too. EY’s Vision 2020 states, in part, that we will encourage the development of the people who are — and will be — the builders, the visionaries and the achievers of a better working world. When I reflect on all that Monique, Mike, Cindy, Randy and the other alumni featured in this issue are doing, I’m confident we’re on the right path.

Stephen R. Howe Jr. EY Americas Managing Partner and Managing Partner, Ernst & Young LLP (US)

Connect March 2014 1 In this issue

Monique Leroux, chair, president and CEO of Michael Strianese, chairman, president and CEO of Cindy Taylor, president and CEO of Desjardins Group L-3 Communications Oil States International

On the cover A few years ago, USA Today named EY a “top five leadership factory”  due to the high percentage of our alumni who go on to serve in top leadership positions in major corporations. In this issue, we talk to three of those alumni, Monique Leroux, chair, president and CEO of Desjardins Group; Michael Strianese, chairman, president and CEO of L-3 Communications; and Cindy Taylor, president and CEO of Oil States International, about what leadership means to them and the challenges they face as leaders of their organizations.

2 alumni.ey.com March 2014

Features ConnectThe magazine for EY alumni 04 The buck stops here Three alumni CEOs share their perspectives on leadership and find that, Editor-in-Chief: Jeff Anderson while their styles may vary, when it comes to making the tough leadership Managing Editor: Jay Seither decisions, the buck truly does stop with them. Writers: Anne Lampert, Jay Seither, Carey Smith-Marchi, John Ward 12 Shaping the vision Creative Director: Donald Batting Learn about Vision 2020, leadership and the power of alumni in a Q&A Contributing Editor: Ellen Lask with Mark Weinberger, EY’s Global Chairman and CEO. Photography: Jonathan Gayman, Robert Thomas

16 No greatness without goodness Connect magazine is printed in the US by Great Former EY partner Randy Lewis’ groundbreaking efforts at Walgreens are helping Lakes Integrated. to build a better working world for the disabled. For further information on Connect, please contact 18 Many happy returns Jeff Anderson at [email protected] Notable tax alumni Dave Kautter and Cindy Rooks have followed very different or +1 404 817 4875. career paths, but they share a common foundation shaped during their time in the EY Tax Practice. 24 Outside her comfort zone EY | Assurance | Tax | Transactions | Advisory Perhaps best known for her best-selling biography of Warren Buffett, alumna About EY Alice Schroeder is constantly seeking new experiences and enjoys making a EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we positive impact behind the scenes. deliver help build trust and confidence in the capital 26 Alumni Council members in focus markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises From the front lines of the conflict in Afghanistan to the second largest school to all of our stakeholders. In so doing, we play a critical district in the US, Alumni Council members Matt Sicinski and Paul Ishimaru are role in building a better working world for our people, for both helping to build a better working world. our clients and for our communities.

31 Alumni Relations around the world EY refers to the global organization, and may refer to Travel to Israel to discover more about alumni relations in this innovative one or more, of the member firms of Ernst & Young country, and meet EY Israel Chairman Ronen Barel, as well as retired partner Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by Itzhak Forer, whose daring and vision helped build the dominant accounting guarantee, does not provide services to clients. For more practice there. information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of News Ernst & Young Global Limited operating in the US. EY Canada refers to Ernst & Young LLP which is a 34 Board and Governance Forum convenes client-serving member firm of Ernst & Young Global A recap of our most recent Forum for EY alumni who serve on corporate boards. Limited operating in Canada.

36 Alumni in the news and new alumni snapshots EY Israel refers to the client-serving member firms of Highlighting recent achievements of your friends and colleagues. Ernst & Young Global Limited operating in Israel.

41 Alumni events gallery © 2014 EYGM Limited. All Rights Reserved. A snapshot of recent alumni events throughout the Americas. Proprietary and confidential. Do not distribute without written permission.

EYG no. QQ0384 ED 0414

The opinions of third parties set out in this publication are not necessarily the opinions of the global EY organization or its member firms. Moreover, they should be viewed in  the context of the time they were expressed. In line with EY’s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content.

Connect March 2014 3 The buck stops here A look at leadership through the eyes of three alumni CEOs

Cindy Taylor

Michael Strianese

Monique Leroux

4 alumni.ey.com Leadership. There’s little debate that In this issue of Connect, we explore the meaning of leadership with three of the more than it’s critical to any successful 250 EY alumni in North America who serve as CEOs of major companies. Our executive venture, whether a business, a trio largely agrees on the core components government, the military or the of leadership, including the ability to inspire, unite and strategize. They also concur on such local PTA. However, try to define leadership prerequisites as deep knowledge of their given field and outstanding management leadership and the responses and interpersonal skills. are as wide-ranging as the The differences among our CEOs’ perspectives on leadership are subtle, people you ask. A quick search perhaps amounting to a matter of emphasis. For example, Cindy Taylor, CEO of Oil States on Amazon.com returns more International and recent appointee to the board of AT&T, approaches her role primarily than 100,000 titles on the topic as that of a team-builder and enabler. Mike of leadership. Barnes & Noble Strianese, CEO of L-3 Communications, says what’s most important in his industry is setting offers more than 700 volumes and upholding a culture of ethical excellence. For Monique Leroux, CEO of Desjardins Group, on “leadership theory and leadership is about positive feelings and the ability to convey a passion for excellence and practice” alone. team spirit to everyone in her organization. In the course of our conversations, all three words: Jay Seither photos: Jonathan Gayman CEOs, without prompting, mentioned that within their respective organizations, the buck truly does stop with them. They’ve all agonized over difficult decisions. One went so far as to say, “If you’re not careful, it really can be lonely at the top.” However, all agreed that being in a position to drive an organization — and the people in it — to grow and succeed is the joy and passion of their lives. They wouldn’t want to do anything else. It’s what makes them all leaders. continued on page 6

Connect March 2014 5 The buck stops here: a look at leadership through the eyes of three alumni CEOs

Monique Leroux: leading from the heart Leadership is one of Monique Leroux’s favorite topics. She loves reading about it, learning about it and talking about it. But, as leader of Desjardins Group, the largest cooperative financial group in North America, what she most enjoys is inspiring leadership in others. It’s only human “Leadership is essentially human nature,” says Leroux. “It’s about emotion, not just hard facts and management skills.” For Leroux, leadership begins with understanding how to rally a group of people — often with diverse objectives, agendas and backgrounds — around a common vision or goal. Next, you must gain those people’s trust. Finally, to truly lead, she says you must inspire each group member to “develop within themselves the spirit of achieving that vision or goal.” And when they do, says Leroux, “you get a level of personal commitment and involvement — positive emotion and energy — that can amplify the success of the organization. “As a leader,” she notes, “you have to create conditions that will help your people realize their dreams.” Leroux believes that all organizations More about must work to develop their future leaders. She mentions that Desjardins Desjardins Group recently completed a corporate Desjardins Group is the fifth largest reorganization. As part of the process, cooperative financial group in the world, management spent considerable time with assets of C$210 billion. To meet discussing ways to increase people’s level the diverse needs of its members and of emotional involvement. clients, Desjardins offers a full range Leroux acknowledges that not every of products and services through its person in an organization will have the distribution network, online platforms emotional aptitude to develop as a leader. and subsidiaries across Canada. The However, she feels a personal responsibility group has one of the highest capital to foster an environment of trust and respect ratios and credit ratings in the industry, at Desjardins where people can “confidently and ranks as the fourth safest and express who they are and what they want strongest bank in North America, to do, and develop the positive energy and according to Global Finance magazine motivation needed to become leaders.” and Bloomberg News, respectively. On January 15, Desjardins Group announced, with State Farm (USA) and One of the first woman partners in Canada, Crédit Mutuel, the acquisition of State Monique Leroux helped establish EY’s insurance and Farm Canada. financial services practice in Montreal. Today she is chair, president and CEO of Desjardins Group, one of the largest financial cooperatives in the world.

6 alumni.ey.com More about “Leadership is essentially Monique Leroux human nature. It’s about Monique Leroux attended the Music Conservatory of Quebec with dreams emotion, not just hard facts of becoming a musician. Along the way she switched her major to accounting. and management skills.” But when she joined the firm in Montreal in 1978, she had more music than Walking the talk Leroux’s listening skills may have accounting credits. Leroux recalls the One of the very few women CEOs in played a significant role in her becoming warm welcome she received at EY Canada Canada (not to mention one of the first Desjardins’ top leader in 2008. Unlike despite her non-traditional background. woman EY partners in Canada and the most financial institutions, Desjardins While at EY, Leroux helped establish first female president of the Quebec is a cooperative. Its CEO is elected (not the insurance and financial services Order of Chartered Accountants), Leroux appointed) by an assembly of 256 people practice in Montreal. Today, the practice doesn’t feel that being a woman has a representing more than 5,000 elected generates nearly 25% of the office’s significant impact on her role as a leader. officers and more than six million clients revenues. In 1988, Leroux was named “It perhaps adds a level of complexity,” and members. Considered a dark horse, partner. She left EY in 1995 to join the she says, “but it also gives me more Leroux personally talked with every Royal Bank of Canada. From 2000 to visibility and opportunity.” panel member. “I wanted them to clearly 2001, she was at Quebecor, Inc., and in And visibility can be a two-edged understand my vision of Desjardins,” she 2001, she joined Desjardins Group, one sword for a CEO, especially when it comes recalls, “but just as importantly, I wanted of the clients she had helped bring to to upholding the organization’s values, to listen and understand what was on their the firm. another of Leroux’s critical leadership minds.” When asked if she was surprised In addition to serving as chair, CEO components. Many organizations, including that she won, Leroux pauses, gives a little and president at Desjardins, Leroux is a Desjardins, notes Leroux, display their smile and says, “No, but I’m always the one member of the Canadian Council of Chief values and mission statements on plaques who sees a glass as half full.” Executives and the Founders’ Council in their lobbies or on their websites and of the Quebec Global 100 network. She business cards. “That’s all very nice,” she also chairs the Conseil québécois de la remarks, “but in reality, when the rubber coopération et de la mutualité and is Michael Strianese: meets the road, are we really doing what a member of the board of directors of we say?” Leroux believes a great leader the best offense is a Co-operatives and Mutuals Canada. She must live the values of the organization at is also a member of the board of directors good defense all times. If there’s ever a disconnect, she of the International Co-operative Alliance, As chairman, president and CEO of L-3, warns, if a leader doesn’t consistently walk and of the board of directors and the the ninth largest aerospace and national the talk, “your people will not only see it, executive committee of the European security contractor in the US, Mike but feel it.” Association of Co-operative Banks; vice- Strianese has a unique perspective on president of the presidential committee Listen and learn leadership. For him, the essential aspect and a member of the executive committee Regarding her own success as a leader, of leadership — the trait he most strives of the International Confederation of Leroux thinks it boils down to two to embody and project throughout his Popular Banks; and a member of the interrelated qualities: she says she’s a good organization of some 48,000 people — is board of Crédit Mutuel’s subsidiary CIC. learner, which is the product of being a that of integrity. “We’re in the business of Leroux also sits on the Advisory good listener. “One of the most important helping the US and other countries with Committee on the Public Service things in life is to know what you don’t their national security,” Strianese explains. (appointed by the Prime Minister of know,” says Leroux. “Another is knowing “In this industry, if you don’t have your Canada) and on the Catalyst Canada who to ask to help you cross that bridge.” reputation, you don’t have anything.” Advisory Board and is a member of Leroux says she is careful to surround For Strianese, who is one of Defense the Canadian Group of the Trilateral herself with people she trusts — inside and News’ “100 Most Influential People in Commission. She is a founding partner outside of Desjardins — and really listens US Defense,” that means continuously of the Quebec International Summit of to what they have to say, good or bad. “To fostering a corporate culture in which Cooperatives (2012–14). be a good leader, you need to listen and be “L-3 is a company that does things right humble about yourself,” she adds. and does the right thing.” He notes this

Connect March 2014 7 The buck stops here: a look at leadership through the eyes of three alumni CEOs

philosophy must pervade everything the It was the early 1990s, about the same passion for your business, being a good company does, from the boardroom to the time the A&D industry was being accused listener and having a vision and the ability customer to employees. of huge cost overruns and excessive to drive others to achieve that vision. government billings. “Compared to the Additionally, he affirms that “expertise, A passion for ethics exemplary ethical behavior I experienced intellectual curiosity and drive” translate Beyond his enthusiasm for L-3 and its at EY, this was an environment that was into charisma and inspiration when talking mission as a supplier to the military, completely foreign to me,” recalls Strianese. to employees, and that interpersonal skills Strianese takes pride in the fact that, to As a result, he established L-3’s ethics are key. Strianese, who describes himself the best of his knowledge, he’s the only program when the company was formed in as a “relationship guy” in business, also Fortune 500 CEO who previously served 1997 and took a “keen interest” in helping accepts that one of the most demanding as a corporate ethics officer. “People may to improve corporate ethics within the A&D aspects of leadership is being willing laugh at that, but to me, being a leader is industry. Strianese takes pride in noting that and able to make the final decision. And having an extreme passion for what I do, by the time the Sarbanes-Oxley Act passed that, he admits, can sometimes be a and that includes a passion for the highest in 2002, the industry and L-3 were “already solitary job. Despite engineers and skilled ethics.” This passion deepened when way out in front.” managers who can provide him with Strianese left EY to work for an aerospace Strianese believes other critical volumes of data and a knowledgeable and and defense (A&D) company. leadership attributes include having a experienced board, at the end of the day, says Strianese, “I must make the call … and I have to adapt and adapt quickly.” “… to me, being a leader is having STEM-ing the problem Looking ahead, Strianese expresses deep an extreme passion for what I do, concern over a “critical problem” facing his industry: developing its future leaders and and that includes a passion for the attracting and retaining the science and engineering talent needed to “ensure that highest ethics.” our troops have the very best technology in their hands to keep them and the US safe.” He notes the majority of the most More about Michael Strianese senior A&D positions are held by baby boomers, many of whom are retiring now Mike Strianese’s path to the US firm of president and CEO, and in 2008 he was or will soon. Further, Strianese anticipates Ernst & Young LLP in 1978 was atypical. elected chairman. a growing shortage of qualified people to He was hired between his junior and As leader of a company that provides fill these jobs. It’s an issue he’s making a senior years of college, working full-time such high-tech equipment as night- high priority, both as the newly elected by day and finishing college by night. This vision goggles, extremely realistic flight chairman of the Aerospace Industries made him not only one of the youngest simulators and other highly classified Association and at L-3. In fact, L-3 recently EY staffers but also the first member of military gear, Strianese is passionate gained recognition for its executive his St. John’s University graduating class about supporting the country’s men and leadership development program, created to land a job with a then-Big Eight firm, women in uniform. He currently serves as with the Wharton School of the University an achievement he’s still proud of. He a Chair of the Marine Corps Scholarship of Pennsylvania. Strianese is also helping served in a number of roles, eventually Foundation’s Leatherneck Ball, an event continued on page 10 becoming a senior manager. In 1991, a that raises millions of dollars each year defense firm asked Strianese to join the to fund the educations of children of company as director of special projects. military personnel killed in the line of In 1996, the company was acquired by duty. In addition, L-3 provides significant Lockheed Martin, which in 1997 spun support for Homes For Our Troops, a off L-3, with Strianese serving as the non-profit organization that provides new organization’s first vice president homes specially adapted to the needs of At right: Michael Strianese, chairman, president and of finance. L-3 went public in 1998 and seriously wounded veterans. The homes CEO of L-3, with models of some of the aircraft his company helps modify for the US military and heads Strianese was named CFO in 2005. In are provided at no cost to their families. of governments around the world. He is also 2014 2006, Strianese was named company chairman of the Aerospace Industries Association and one of Defense News’ “100 Most Influential People in US Defense.”

8 alumni.ey.com More about L-3 L-3 is a global aerospace and national security company with 2013 sales of US$12.6 billion that employs approximately 48,000 people worldwide. Headquartered in New York City, L-3 provides C3ISR (command, control, communications, intelligence, surveillance and reconnaissance) systems, platform and logistics solutions, national security solutions and electronic systems that serve the military, homeland security, aviation and other commercial markets. L-3 customers include the United States Department of Defense, other US government agencies, allied foreign governments and commercial customers.

Connect March 2014 9 The buck stops here: a look at leadership through the eyes of three alumni CEOs

launch a STEM (Science, Technology, Engineering and Mathematics) program at More about Cindy Taylor his former Brooklyn, New York, high school. Cindy Taylor joined Ernst & Young LLP one, in which Taylor would serve as The roots of leadership in Houston right out of college in 1984. senior vice president. She agreed and Strianese recalls the “amazing and In 1989, Cliffs Drilling Company, a the result was the formation of Oil foundational” mentoring he received from newly formed public company and one States International in 2000. She was EY colleagues such as Lew Kramer (who of Taylor’s clients, offered her a job. later named president and COO and in was asked to join L-3’s board after retiring She turned it down, citing weakness 2007 was appointed president, CEO from EY), John Gray and LeRoy Herbert. in the oil and gas industry at the time. and director. “The willingness of these men to invest Three years later, when the market In addition to her role as CEO in me at such a young age truly made a rebounded and the company asked of Oil States International, in 2013 difference in my career and my life.” her again, she said yes. Over the next Taylor was named to the board of seven years, Cliffs Drilling’s stock value directors of AT&T. She is also a director increased more than tenfold. But then of Tidewater, the world’s largest Cindy Taylor: energizing came another industry downturn, operator of vessels serving the oil and leading Cliffs Drilling to merge with R&B gas industry, and on the board and her team Falcon (now Transocean, Ltd.). Taylor executive committee of the National When defining leadership, Oil States led the company through the transition Ocean Industries Association. At International CEO Cindy Taylor mentions and left in 1999 to join SCF Partners, Texas A&M University, she serves as words you might expect to hear, such as a Houston-based private equity trustee of the 12th Man Foundation character and trustworthiness. But then firm specializing in oil field service and on the development council of the she adds an attribute one doesn’t always investments. Within a year, Taylor was Mays Business School, which in 2011 hear associated with the term: humility. approached with the rather unorthodox recognized Taylor as an outstanding For Taylor, the term is a reflection not idea of merging four private energy- alumna. Taylor was an Entrepreneur Of only of her personal leadership style, but related companies into a single public The Year national finalist in 2012. also her rural roots, and how she tries to lead her everyday life. “Leadership” she says, “should not be about me or an individual — it should be a collective effort of people pulling in the same direction to “Leadership should not be about me or achieve success.” an individual – it should be a collective Distributed leadership Taylor subscribes to “distributed effort of people pulling in the same leadership,” whereby a CEO or other leader is surrounded by a team of direction to achieve success.” strong, talented people representing many different perspectives. While The approach must be working. In they openly discuss, challenge and, if acknowledging her role as the ultimate January, Taylor was named “TopGun necessary, refine Oil States’ strategy as decision-maker at Oil States, Taylor CEO of the world” by Brendan Wood well as “air out” other issues. believes that “nobody leads alone … International, based upon shareholder Paying it forward and anyone who says so is only kidding ratings that evaluate more than 1,300 Growing up on a ranch in the tiny town of themselves.” Under the distributed “world-class” public corporations and Goldthwaite, Texas, Taylor never envisioned leadership model, Taylor sees her job as their CEOs. working for a Fortune 500 company, let clarifying the vision and strategy, setting Taylor also strongly believes that alone becoming its CEO. But during her the example and empowering the team to no leadership approach, distributed or first year at EY, she recalls a more senior get to work. “We all strive to do our best, otherwise, will be successful without a colleague walking up to her and stating, but none of us does everything perfectly sound strategy. “It’s the most critical thing “You do realize you’re a born leader.” As every day,” notes Taylor. She believes the a leader must have,” she notes, “and it Taylor recalls, up to that point the thought distributed leadership approach opens the must be a strategy that can be clearly had never crossed her mind. But the team to sharing ideas, collaborating and articulated throughout the organization.” interaction had a lasting impact. It made making adjustments, thereby “helping Twice a year, Taylor and her leadership Taylor realize the “incredible power of everyone become more successful.” team hold an executive retreat where

10 alumni.ey.com Issue # – Month Year

As president and CEO of Oil States International, Cindy Taylor was recently named one of the top CEOs in the world based upon shareholder ratings. She’s also a member of the Houston Alumni Council.

More about Oil States International Oil States International is a US$6 billion diversified solutions provider for the oil and gas industry. While not directly involved in exploration or development of the resources themselves, Oil States is a leading manufacturer of the equipment needed for deepwater drilling and production facilities and subsea pipelines. It also provides the oil and gas industry with services, including remote site accommodations, production- related tools and land drilling support. It employs approximately 9,000 people in 11 countries. In 2005 Oil States made Forbes’ “Top 100 Best Mid-Cap Stocks” list and in 2006 and 2013 it was named among Fortune’s “100 Fastest-Growing Companies.”

giving positive, reinforcing messages” as a Taylor is a huge sports fan and diehard it’s not an issue.” While she clearly way of inspiring others to excel and to lead. Texas Aggie. So it’s not surprising that appreciates the benefits of diversity, Taylor Today, Oil States is “huge on promoting many of her leadership heroes are athletic says she doesn’t want an advantage nor from within,” says Taylor, “and the only way coaches, including longtime Alabama does she want to give an advantage based you can do that is to develop your people.” football coach Bear Bryant. “What he did solely on gender (or other characteristics). One of Oil States’ “greatest initiatives,” best was bring out the best in others,” says Still, Taylor is quick to point out that less according to Taylor, is the creation of a Taylor, “and that’s consistent with my way than 5% of Fortune 500 CEOs are women, a system of “talent pathways” designed to of thinking of building a strong team, giving condition she calls “radically out of line.” identify and train the company’s future them the tools they need and allowing Change is a good thing leaders. Taylor notes that one of the most them to achieve individual success.” Taylor has words of advice for future leaders: fun and rewarding aspects of her job is Like Monique Leroux, Taylor doesn’t don’t be afraid of change. “Change creates helping prepare people for the next level of believe being a woman greatly affects opportunities for those who aren’t afraid to responsibility and leadership. “At the end of her role as a leader. “I’d be kidding myself jump in and run with the ball.” Because the the day,” she says, “if I get hit by a bus and if I didn’t think there weren’t different world is changing so rapidly, she warns that there aren’t leaders in place ready to step perceptions of a woman leader,” she states, if you’re not changing, there’s a very good up, I haven’t done my job.” “but with the right attitude and perspective, chance of getting left behind.

Connect March 2014 11 Shaping the vision A conversation on Vision 2020 and leadership with Mark Weinberger, EY’s Global Chairman and CEO

words: John Ward

Mark, thanks for speaking with us. In economic stability and growth, which in turn January 2013, EY launched its Vision 2020 provide opportunities to address some of the plan, along with a new tagline: Building a world’s major issues. better working world. Why that tagline and How does Vision 2020 relate to our what does it mean to you, personally? nearly 200,000 alumni in the US and Building a better working world is some 700,000 alumni worldwide? more than a tagline; it’s our purpose. It Whenever people join EY, however reflects who we are and what we do as an long they stay, we want them to have organization. It’s about looking beyond self- an exceptional experience that lasts a interest and engaging with the world. Every lifetime. The skills they’ve learned, the day, every EY person is part of building a global experiences they’ve gathered, the better working world — for their clients, their exceptional client opportunities they’ve families and their communities. I believe that worked on, all give them unique insights into everything we do — every audit, every tax the world and how to improve it. return, every advisory opportunity, every Everyone leaves EY at some point — interaction with a client or colleague — should sometimes they return and sometimes they make the world better than it was before. move on to new opportunities. I should know: The insights our people share and the I’ve joined EY four times over my career. quality services our people deliver build trust Our alumni, having gone on to achieve and confidence in the capital markets and in great things, have demonstrated how economies the world over. Most significantly, valuable their EY experience has been. From their efforts contribute to global and local setting up their own businesses and creating

12 alumni.ey.com Connect March 2014 13 Shaping the vision: a conversation with Mark Weinberger

jobs, to working with state agencies and Is US$50b a truly achievable number or technology a competitive differentiator for governments, to helping a whole new array more of an aspiration? And where do you our business. In Assurance we’re investing of clients by working in other organizations, think that kind of growth will come from? US$400m to replace our tools and tailor our our alumni are definitely helping to build a I’d say it’s ambitious but achievable. methodologies to better enable the audit of better working world. Getting to US$50b in revenue by FY20 large public entities, middle-market accounts When someone leaves EY, we don’t see requires a compound annual growth rate of and statutory accounts. this as the end of the relationship, but rather about 10%, an increase in our growth rate We’re also embedding data analytics the beginning of the next stage. Under Vision over the past few years. But we’re making across our service lines, making investments 2020, we’re actively encouraging our alumni the necessary investments in new services, in sectors and mobility, and continuing to to stay connected to the organization and technology and acquisitions to enable us to invest in the emerging markets. to each other by building a global alumni reach this target. In this edition of Connect, we’re portal and executing a standard approach to A significant proportion of this growth talking to several alumni who serve maintaining stronger relationships with our will come from new services and strategic as CEOs on the topic of leadership. alumni across the globe. acquisitions. The rest will come from our Several years ago, USA Today named clients, whom we’ve grouped into two Vision 2020 also states our Ernst & Young LLP as a “top 5 leadership categories: our Global 360 (G360) accounts ambition to nearly double current factory” because of the very high and our Core accounts. revenues and to become a US$50b percentage of our alumni who serve in The G360 are composed of client distinctive professional services the C-Suite. What is EY doing to develop organizations that are, or one day will firm by the year 2020. What do you its next generation of leaders? be, truly global in scale and scope. These mean by “distinctive”? It starts by attracting talented, bright accounts require significant cross-border A distinctive professional services people to our organization. When they join, service delivery and an integrated approach organization is one that has a strong we want the experience they have here to across multiple markets. If we execute brand and purpose that stakeholders nurture their natural talent and help develop seamlessly on a global basis and make the strongly identify with — something that them into our next generation of leaders. right investments worldwide, G360 accounts distinguishes it from its competitors. We not only offer a wide array of technical will deliver significant growth for our firm. We’ve put in place a bold ambition to more education to develop the skills necessary Achieving significant growth in our Core than double our business by becoming a to carry out their day-to-day role, we also accounts is also a key driver of EY’s growth distinctive, leading professional services offer a broad array of non-technical learning, agenda. We are taking steps to energize the organization. We aspire to become the which focuses on a range of personal Core and to better enable our partners to win number one brand, the most favored leadership development topics, from having in this space. employer and a leader across our chosen more authentic conversations to managing In addition to the investments we’re services, and to build stronger relationships relationships and becoming better coaches. making in new services and acquisitions, with our clients and stakeholders. We hold regular milestone events for we’re also investing US$3.8b to help make people across the globe who’ve recently been promoted. In addition to offering them the opportunity to celebrate their success with their peers, these events provide people the training necessary to develop their leadership skills as they assume their new responsibilities. Finally, critical to a person’s leadership development at EY is having the best counselor. A great counselor can see leadership talent early and develop it by helping his or her counselee to make the right career development decisions and providing honest feedback. At EY, we

Mark Weinberger (left) shares a moment with former US chairs Bill Kanaga (center) and William Gladstone at our “Legacy of Leadership” alumni event in New York City.

14 alumni.ey.com “When someone leaves EY, we don’t see this as the end of the relationship, but rather the beginning of the next stage.”

have tools and training specifically the opportunity to work closely with him designed to develop great counselors early in my career and what struck me across our business. about him was that, in a highly political environment where there’s strong ideology You’ve worked with two US leaders, and you’re often pressured to take party President George W. Bush and President positions, he was never afraid to do what Bill Clinton. Did they have very different he thought was right. During disputes, leadership styles? he excelled at finding common ground Yes, they did. President Clinton was between both parties to more easily find a cerebral and wanted to be involved in all the solution. He’s a true leader. issues. He dove into the details and wanted My dad’s also been a great mentor to to make a lot of the decisions. President me. He worked as a plumber and spent How would you describe your leadership Bush was good at surrounding himself with most of his life in Scranton, Pennsylvania, approach or style? different views from lots of people and then where I grew up. When I became more I would describe my leadership style drilling into the issues by asking the right successful and got loftier titles, he gave as one that works by building strong questions and then relying on that input to me some great advice. He said no matter relationships with great people, learning come to an answer. where you end up in your career and no from them, and using what I learn to Who were some of your leadership matter what title you have, you must always motivate others either individually or as mentors? remember who you are and where you came part of high-performing teams. As a leader One of the most inspirational leaders from. He also taught me to value family. A I try to energize the people around me and I’ve known is former US Senator John great mentor never lets your forget who you I hope it is contagious. Danforth, a Republican from Missouri. I had are or what’s important in life.

Connect March 2014 15 Building a better working world EY alumni have always been about helping to build a better working world. Our alumni bring their business acumen and leadership skills to an incredible array of efforts — from the local Humane Society to the AICPA to the United Nations — always looking to make a positive difference for our profession, our communities and the people around us. Beginning with this issue of Connect, we will bring you the stories of our alumni who are helping to build a better working in an extraordinary way. Randy Lewis No greatness without goodness

Randy Lewis is passionate about giving people its distribution centers. Lewis had an idea: why not redesign the centers’ jobs in a way the opportunities they deserve – even if it that they could be performed by people with means turning the status quo upside down. disabilities? The inspiration came from a very personal experience: Lewis’ son Austin was words: Anne Lampert photos: Jonathan Gayman born with autism. He had watched Austin’s difficult transition from school to workplace, Randy Lewis has led a quiet revolution. Ernst & Young LLP’s Chicago office. He loved aware of the high unemployment rate and Having recently retired as Walgreens’ the people, the work and the partnership the lack of challenging jobs available for senior vice president of supply chain, culture. He has great memories of working people with disabilities. he inspired a program to bring disabled with Partner Jim DiStasio, who went on Parenting an autistic child brought Lewis individuals into the workforce as equals to to become Ernst & Young LLP Senior Vice to a new level of awareness. As he tells their non-disabled peers, with the same Chairman and Americas Chief Operating it, “There is a whole world of people who pay and opportunities for advancement Officer. Walgreens was Lewis’ primary client are only six inches under water, but they and job mobility. Today, 1,000 disabled until 1992, when the company offered him are drowning. They can never get to the workers are employed throughout the a position. “Until that morning,” he recalls, top of the applicant list because of others’ company’s 20 distribution centers — 10% “I never thought I would work for a client. misconceptions.” And, he adds, while we of the centers’ workforce. But everything I had trained for to that point think we know what it takes to do a certain At a young age, Lewis felt the urge to prepared me for the job.” job, our biases are often wrong. build a better working world. He joined the Importantly, Lewis set several Seize the moment — make Peace Corps out of college and went to Peru, benchmarks for the effort: no additional a difference teaching farmers how to better manage expenditures, no difference in pay While leaving EY and its people was difficult, agricultural cooperatives that would benefit or performance standards. With this Lewis found that Walgreens was going their businesses and their community. Even approach, the company would be “fair to through an exciting period of expansion. then, he was pushing to change a culture shareholders and fair to our employees.” During his tenure, the chain grew from where such institutions did not exist. He calls Presented in this manner, Lewis notes, his 1,500 to 8,000 stores. But there was it “a wonderful experience.” proposal “lit a fire” at Walgreens. another, even more compelling opportunity. He later earned his MBA at the Major change can spark apprehension The company was in the process of University of Texas. By the early ‘90s Lewis among those having to implement it. What reforming the technology used to operate was serving Walgreens as a consultant in if they failed? “One day we were discussing

16 alumni.ey.com the idea of raising the height of a work surface. The engineer I was speaking with asked me, ‘Are we intentionally building this table for people with disabilities?’” Lewis could have avoided the question, but he said “yes,” and the engineer understood. It was a “Rubicon moment,” as Lewis describes it. “If we failed, it would be the failure we would be most proud of.” a walker, and her legally blind son, moved lesson he has learned is to let go of every Reaching out across the country to train for a year on their preconception of what a disabled person Each of Walgreens’ distribution centers own time just to have the chance to apply. can do: “You ask the person.” How about connects with state and vocational They now work in the Moreno Valley center. a deaf customer service representative? rehabilitation agencies, with community- Walgreens’ accomplishment is a She is working in one of the centers and based disability organizations, and with lesson to businesses everywhere that the her colleagues love working with her. She schools to offer work-study programs. Other seemingly impossible can be achieved. In performs via email and lip-reading. training is provided through TEACCH, a Lewis’ words, “Experience is overrated.” In Walgreens has built four new distribution University of North Carolina program that 2005, the company set a stretch goal that centers designed from the ground up helps those new to the teaching profession the distribution centers’ disabled workforce with the new technology. The locations develop strategies that address the needs would reach 10% within five years. While are Jupiter, Florida; Waxahatchee, Texas; of various learners. Insights from TEACCH, the recession threw off the timing by six Perrysburg, Ohio; and Moreno Valley, for example, led Walgreens to adopt touch months, Walgreens reached its objective California. Lewis looked forward to leading screens allowing workers to respond to by mid-2011. tours and watching people’s perceptions shapes instead of words. Also, since some change. “Visitors would look around for the Always ask have trouble with numbers, workstations disabled people and not see them. They just Lewis has learned about many physical and were given names, rather than numbers. saw our people working.” mental disabilities that he hadn’t known The program is changing people’s lives. Lewis calls the program “the best work about previously. The people who work As part of building a new distribution center of my life.” And he reflects, “Deep down at the centers reflect the full spectrum — in southern California, the host city organized everyone wants to help somebody; they just from cerebral palsy to mental retardation a training facility. One woman, who uses need permission to do it.” to quadriplegics. The most important

Connect March 2014 17 Many happy returns Catching up with two notable EY tax alumni

Cindy Rooks Dave Kautter

At some point in their careers, many accounting professionals have to decide: will I work in auditing or tax? In this issue of Connect, we talk to two EY alumni who heard the call to the tax side early on. Their stories are quite different. However, each describes the lasting impact of their time in the EY Tax practice on their lives and careers.

words: Jay Seither photos: Jonathan Gayman

18 alumni.ey.com Don’t let Cindy Rooks’ mild manner deceive you. Yes, she’s a grandmother and Sunday school teacher. And yes, she loves reading and spending time with her family. But as Senior Director of Tax for Harley-Davidson, this EY tax alumna is passionate about helping to drive one of the oldest, most successful and most iconic brands in US history.

Cindy Rooks: easy(going) rider

Rooks started her career as a high school business teacher. She soon realized she “really wanted that accounting degree” and went back to school to get her MBA in Finance, Master’s in Tax and CPA license. In 1987, she joined the Ernst & Young LLP tax practice in Milwaukee. Four years later, she joined her client Harley-Davidson as the company’s first tax manager and one of its first women executives in finance. As Rooks explains, Harley-Davidson had just come through a tumultuous period, including really liked accounting but was fascinated “extreme positions” taken by some a management buyout in 1981, and was with tax,” she says. “To me, it was a governments and taxing agencies. She becoming profitable again — and that challenge, a puzzle, something that’s notes that in her first 20 years with Harley- meant paying taxes. She was tasked with always changing.” One of the things that Davidson, the company was not involved in building an internal tax department. Rooks likes most about tax is that it’s “not a single case of income tax litigation. Now, always black and white.” she points out, it’s not uncommon to be Solving the puzzle One of her greatest tax challenges involved in a half-dozen suits. And audits Rooks’ attraction to taxes started early in these days is dealing with the increasingly are getting more difficult to win. “It used to her life, preparing her personal returns. “I

Connect March 2014 19 Many happy returns: catching up with two notable EY tax alumni

be if a taxing body made an assertion, we She’s been active in Tax Executives Institute Rooks is proud of her EY tax could eventually get to a win-win situation; (TEI), the Manufacturers Alliance (Tax background. She says it gave her an that’s not always the case anymore,” she Committee) and the Tax Committee of opportunity to work with exceptional says. For Rooks, it’s just another piece of Wisconsin Manufacturers & Commerce people and great clients. You might solving the ever-evolving tax puzzle. (WMC). And she remains in contact with even say it helped kick-start her highly fellow EY alumni such as Dave Moskel, Ruth successful career. Rooks’ husband, Rich, Hit the road, pal Kallio-Mielke and John Haertel, with whom is a retired production artist and “Austin- While Rooks has her motorcycle license, she has been able to “learn and share and Healey car fanatic.” They have two adult she stresses that it is not necessary grow” together. children and two grandchildren. to be a Harley-Davidson motorcycle owner or rider to get caught up in the company culture, which she describes as “infectious.” For Rooks, Harley-Davidson is all about the experience. “Whether The making of a great tax practice it’s participating in a riding course or by Kate Barton, Americas Vice Chair — Tax attending one of our annual bike weeks — EY has the number one brand even if just to look at all the Harleys from when it comes to tax services in the years ago — Harley-Davidson is all about Americas. We are also the tax growth fulfilling dreams,” she says. “If all we did leader among the Big Four and have was sell motorcycles, we wouldn’t be any the leading share of “voice” in the US different from anyone else.” media. As leader of the EY Americas And Harley-Davidson sells a lot of Tax practice, I am, naturally, highly motorcycles. This year, the company pleased with all of these first-place expects to ship more than 279,000 rankings. At the same time, I am bikes around the world, up more than very humbled. 7% from 2013. It is the market leader Even as the firm embarks on in the US, Australia and even in Japan, Vision 2020, I am reminded almost “our competitor’s backyard,” as Rooks daily of the incredible legacy of describes it. leadership entrusted to me. I think of Reaching new riders the entrepreneurialism and creativity In her early years at Harley-Davidson, Rooks of my mentors, including such Tax says it wasn’t uncommon to get a raised practice alumni as Bill Lipton, Jim eyebrow when she told someone where Henderson, Mike Kelley and Bob Allen. she worked. She didn’t exactly fit the “biker I also learned much about business image” of the early ’90s. But a lot has from audit professionals such as changed in 20 years. Today, most Harley Jim DiStasio, Peter Nurczynski, Ken that includes staying connected with buyers are college-educated professionals Watchmaker and John Mahoney. our EY alumni, tax or otherwise. and the group is increasingly diverse. Last These people were not just great A few weeks ago, I was sitting in the year, for the first time, the motorcycle technicians and leaders, but they were airport and wearing a shirt with the manufacturer’s sales to “outreach also incredible teachers. new EY logo. A gentleman approached customers” in the US — young adults aged I’m a big believer in paying it me and identified himself as a former 18–34, females, African Americans and forward. For this reason, I think one EY partner. As we chatted, I could see Hispanics — grew faster than sales to its of the greatest gifts our EY forebears in his eyes and hear in his voice the core customers. Today, Harley-Davidson is left us is the apprenticeship model pride he takes in being an EY alum. It the US market share leader among these of developing our next generation of made me want to work even harder demographic segments. professionals and leaders. My mission to make the EY Tax practice the very is to continue that legacy. Whether a best it can be. But more importantly, Taking it to the street person stays with EY 3 years or 30, I it spoke to me about the power of For Rooks, being a tax professional means want to do all I can to help deliver on the staying connected. I hope you will. being well-connected and well-rounded. “It’s EY promise to provide an exceptional not just about what I do at Harley-Davidson,” experience that lasts a lifetime. And she remarks. “It’s also about what I can do to be involved with and help the profession.”

20 alumni.ey.com For 33 years, Dave Kautter, former Ernst & Young LLP US Director of National Tax, helped to build one of the world’s largest and most successful tax practices. Today, as Chair of the Board of the Washington National Cathedral, he’s working to rebuild and preserve one of the nation’s most cherished and iconic landmarks.

Dave Kautter: man on a mission

An earth-moving experience In August 2011, a 5.8 magnitude earthquake rattled the Eastern Seaboard, including the nation’s capital. The tremor lasted only seconds, but it inflicted more than US$25 million in damage to the Cathedral, which is privately funded. It is Dave Kautter’s job not only to oversee the restoration of the Cathedral but to ensure its long-term economic survival.

Connect March 2014 21 Many happy returns: catching up with two notable EY tax alumni

A major tourist attraction, the Always a teacher Washington National Cathedral remains In addition to his work at the Cathedral, Tax Insights for an active house of worship for several Kautter is a full-time professor at American denominations. However, Kautter points University and runs the school’s Kogod business leaders out that the edifice is more than a Tax Center, focused on tax issues affecting church or a parish, “It’s a cathedral and entrepreneurs and small businesses. cathedrals play a unique role in societies As director, Kautter has testified before and cultures.” Congress, appeared on national television Kautter first got involved with the and is regularly in the press. Considering a Cathedral in 2008, just after the economic career “dedicated to learning, mentoring downturn. Realizing a need for people with and teaching” at EY (as well as a three- strong financial skills to guide it through year stint as Tax Legislative Counsel to the “challenging times ahead,” the former Senator John Danforth), Kautter Cathedral’s board asked Kautter to chair says shifting into the academic role “was its finance committee. He was soon named not a big jump. My passion has always to the board of directors, and in 2012 was been helping people, clients as well as The structural changes taking place in named chair. staff, finding ways to help them grow and the global economy have already left improve.” Even though he retired from the Living in harmony their mark on tax matters, particularly firm four years ago, he continues to mentor With its mission to “be a catalyst for those concerning multinationals. Few a number of EY professionals. spiritual harmony in our nation,” serving signs indicate that the pace of change the Cathedral is a natural for Kautter. I knew Mark Weinberger when … will slow. On the contrary, tax complexity “I’ve always had an interest in helping Early in his career at EY, Kautter got to is rising quickly. As companies rethink others, in faith in American society and in work with a young staffer named Mark their operating models to adapt to encouraging interfaith dialogue,” he notes, Weinberger. He remembers Weinberger as a this fast-paced and increasingly global perhaps a reflection of growing up in a “thoughtful, energetic staff person who was environment, they are compelled to take religiously “mixed” home. With a Catholic not afraid of hard work or of taking a risk. the global view. mother and Protestant father, Kautter has Mark was an extraordinarily bright individual EY’s newly re-launched publication, childhood memories of Sunday mornings who tried to get better every day.” Tax Insights, provides business shuttling back and forth between Mass, executives around the world with this National trailblazer Protestant services, catechism and global view. Together with EY’s efforts Looking back on his career with EY, Kautter Sunday school. Later, as a Notre Dame to build a better working world, we want is particularly proud of his accomplishments student, he spent a year in Tokyo studying to facilitate a multi-perspective debate with the National Tax practice, which he East Asian religions. and discussion focusing on tax issues ran from 1986 to 1989 and again from In addition to being a house of worship, and developments on a global scale. 2000 until he retired in 2010. “Back then, tourist attraction (some 700,000 people We want to place tax in the broader the concept of a National Tax practice — visit annually) and national landmark, the business conversation and make tax having highly specialized tax professionals Washington National Cathedral is a business. matters more accessible for business throughout the country linked by a With an annual budget of US$14 million — all leaders and their teams. The magazine, sophisticated knowledge-sharing network from private donations — the Cathedral is its web portal and its mobile application and coordinated by a local Tax Services always looking for ways to attract financial will deliver this insight by presenting Coordinator — was revolutionary,” notes support. “We’re constantly looking for those perspectives from a wide array of Kautter. The concept worked “with great who have an interest in the principles the international EY professionals and even success” and continues to underpin EY’s tax Cathedral advocates — interfaith dialogue, more representatives from business, services model. Today, the model is used by whether within the Christian denominations academia, NGOs and government. all the national firms. or with Jewish, Islamic or other religions — Look for Tax Insights as it debuts When not teaching or serving at the and developing ways of working together.” globally later this year, and quarterly Washington National Cathedral, Kautter In another area of outreach, last November thereafter, through the Financial Times also sits on the Tax Analysts Board the Cathedral launched a Veterans Initiative, newspaper. For more information about (publisher of Tax Notes). He and his holding a Veterans Interfaith Prayer Tax Insights, contact Alexander Lorimer wife, Kathy, an award-winning artist and Breakfast the Sunday before Veterans Day. at [email protected]. photographer, have two adult children.

22 alumni.ey.com Celebrating 150 years in Canada We proudly congratulate EY Canada on its sesquicentennial — an amazing 150 years of success dating back to before Canada was born. Our colleagues in Canada have been committed to exceptional client service and helping businesses grow for a long time — from the firm’s founding in Toronto by Thomas Clarkson as a trustee and receivership business in 1864 to, today, with 15 offices across the country and more than 4,000 partners and staff.

When we look at Canada’s accomplishments, it’s clear that our purpose of building a better working world has always run strongly through the organization. The 150th anniversary is an opportunity to celebrate the firm’s place in supporting sustainable economic growth, trust and confidence, as well as the development of talent in all its forms — in Canada and beyond. We congratulate our colleagues on this amazing milestone! Way to go, Canada!

Watch for more coverage of EY Canada’s 150th anniversary in our September 2014 issue.

Connect March 2014 23 Article heading

Alice Schroeder organizes her life around those experiences that will Outside teach her the most. It’s proven to be a her great game plan. comfort zone words: Anne Lampert photos: Jonathan Gayman

You may be surprised to learn that Alice Schroeder, former all-star securities analyst, CPA, best-selling author, FASB regulator and EY alumna is a devoted ballroom dancer. In fact, she has taken dance instruction from none other than Tony Dovolani, an all-time Dancing with the Stars champion. But then, mastering ballroom dances such as the waltz and the tango means making your partner look good. And after an auspicious and varied career, Schroeder has discovered that above all, she values playing a nuanced role, making a positive impact behind the scenes. And she is keen to leap into new experiences, learning all she can along the way.

24 alumni.ey.com High standards who were at the most senior levels of the new. But her wide-ranging roles in Schroeder “fell in love” with EY after business. She embraced the opportunity to accounting, regulation and investment receiving her MBA in Finance from the leave her comfort zone, drafting some of the banking have revealed her strong suit. Red McCombs School of Business at most significant accounting rules affecting “It took me a long time to realize that the University of Texas. Having started the insurance industry along the way. my greatest strength is to help people in Ernst & Young LLP’s Houston office, understand the hidden aspects of their A Wall Street veteran Schroeder describes her time at the firm as own businesses.” Today, as a member of Investment banking was Schroeder’s next truly formative. “I learned the language of the boards of directors at Prudential and destination. She spent 15 years on the business,” she recalls. Serving on the audit Cetera Financial Group, she is proud of her Street, serving as managing director at team for multiple and varied clients was an role as a trusted advisor to management several of the world’s largest investment “invaluable” experience that exposed her to and maintains her involvement in the banks, including Morgan Stanley. Her time an exceptional breadth of knowledge. financial services industry. there encompassed a period of high drama She fondly remembers working with Schroeder is passionate in her concern for the industry, culminating in the financial extraordinary people who fostered high about the underutilization of women on crisis and the meltdown of insurance giant standards in themselves and in her. While the boards of US companies. She cites low AIG and others. Schroeder describes having she did not realize it at the time, the turnover — largely due to the absence of a ringside seat for these seemingly earth- experience “led me to expect more of myself term limits — as one major barrier. Another, shattering events as “an education in itself” and nurtured a desire in me to work with she says, “is a mindset among decision- that resulted in her being ranked at the top these kinds of people for the rest of my life.” makers who do not look beyond CEOs as of her profession in the Institutional Investor This includes such “brilliant business people” prospective candidates.” She encourages All-America Research poll. Risk and Insurance as Bob Zlotnick and Marcie Cohen, who executives to focus instead on individuals magazine called her “one of the most later married and left EY to launch a highly with the stature, presence and perspective respected — and unafraid — thinkers on Wall successful energy company. to benefit the company. “There are Street.” As an analyst, Schroeder followed Another influential and memorable thousands of women who are qualified to be Berkshire Hathaway and in the process individual was Denny Beresford, who on boards,” she says. became well-acquainted with CEO Warren at the time was Ernst & Young LLP’s For alumni who are considering board Buffett, one of the world’s most remarkable National Director of Accounting Standards. membership, Schroeder has useful advice: people. In 2009, she published his biography, Schroeder reported to Beresford in the she urges a thoughtful approach. “Choose which went on to become a number one firm’s National office. After Beresford your boards carefully. Don’t take the first New York Times best-seller, The Snowball: left EY in 1987 to chair the Financial opportunity that presents itself.” Ask Warren Buffett and the Business of Life. Accounting Standards Board (FASB), he yourself whether the board is valued by asked Schroeder to join him. It was a great Fostering understanding management as a source of independent opportunity in terms of helping to shape Throughout her varied career, Schroeder insight and advice. And ask yourself whether accounting regulation and meeting people has never stopped learning or embracing you have the knowledge and background to make a distinctive contribution. Schroeder reports that it’s not uncommon for directors to receive a thousand pages of documents to review less than a week before the next board meeting. “Unlike an auditor, an analyst or a journalist, the board member is privy to a lot of information accessible to no one else.” Having served in and learned from each of those roles, Schroeder believes she has developed an ability to sift through the information — “millions of data points” — to identify what’s most important. “It’s gratifying when management comes to me, eager to get my help and advice.” It’s a role she seems destined to play.

EY alumna Alice Schroeder talks about her experiences as Warren Buffett’s biographer during a recent executive alumni event in Chicago.

Connect March 2014 25 Noteworthy Alumni Council members Matt Sicinski and Paul Ishimaru keep In alumni connected ocus Our network of 22 Alumni Matt Sicinski fCouncils, comprising more With conflict brewing in Iraq and Afghanistan, than 400 of your fellow Matt Sicinski knew when he joined the U.S. Navy Reserve in 2008 that it was not just a EY alumni, help us stay matter of whether he would be deployed, but when. That day came in December 2012, connected. In recognition of when he boarded a plane that eventually landed him in Afghanistan for an intense their contribution, we want to nine-month deployment. Now safely home in Texas, the Houston Alumni Council member introduce you to some of our draws interesting parallels between his service to his country and his service as a former Council members who are truly Ernst & Young LLP audit manager. Understandably, Lieutenant Sicinski helping us carry on the spirit of can only share a limited amount about his duties in Afghanistan. What he can say is high-performance teaming. that he served as an officer supporting the U.S. Special Operations Command, and that it was dangerous work. Sicinski’s unit words: Carey Smith-Marchi received rocket fire frequently. “With the early warning system, you’d hear a siren go off, and a voice came over the speaker saying, ‘Incoming! Incoming! Incoming!’” he recalls. Sicinski remembers tensing up the first few times. “But then,” he adds,

26 alumni.ey.com photo: Jonathan Gayman Matt Sicinski On the front lines of service

Connect July 2013 27 In focus — noteworthy Alumni Council members

“you realize everyone else just keeps on deployment. “The audit room camaraderie, network of business contacts to bounce working, and believe it or not, you kind of the focus on getting the job done, translate ideas off of,” he notes. He also says alumni get used to it.” The unit Sicinski was with well to the military,” he remarks, “and it’s can benefit from the learning programs and lost 16 service members during his time those experiences of trust built between thought leadership offered by the firm. there. “Standing on a runway to salute colleagues that last a lifetime.” Since getting over the “initial shock” of flag-draped coffins is something I hope to When he’s not serving his country, returning from Afghanistan last October, never do again.” Sicinski’s “day job” is that of Director Sicinski reflects on how easy it is to get of Financial Analysis for Southwestern lost in the rush of civilian life. “The world Something bigger than himself Energy in Houston. “Southwestern has continues, but a part of you is still over Sicinski commissioned as a Navy Ensign been great,” he remarks, recalling how the there,” he reflects. “You have people you at age 31 with a wife, a three-month-old company supported him before, during and care about — you want to get them home baby, and a promising accounting career. after his deployment. and accomplish the mission.” For Sicinski, When asked why he would voluntarily his time deployed offers a new perspective put his life on the line, Sicinski notes that Ready, aim, network on living a simpler life: “I don’t sweat the it’s about “being a part of something Sicinski’s service on the Houston Alumni small things anymore.” bigger” than himself. “My grandfather flew Council is no accident: teaming and staying bombers in World War II and my father connected are what he does. And he Houston Alumni Council member and U.S. Navy served in the military as well,” he says. “I encourages his fellow EY alumni to do the reservist LT. Matt Sicinski during his nine-month always admired people who served and same. “As EY alumni, we comprise a vast deployment in Afghanistan. always wanted to get involved.” Despite the risks, Sicinski describes his deployment as an “exceptional experience.” He is particularly proud of his reserve unit, which he notes is composed largely of professionals, including lawyers, MBAs, PhDs and even a hedge fund manager. When he reflects on his experiences working with the Green Berets, Navy SEALs and other “special operations guys” that his unit supported, he adds, “They do incredible things that most people could not even fathom, and they do it with such cool and composure and without hesitation.” An EY link There is an EY connection to Sicinski’s military service. About two years before he commissioned, Sicinski ran across an article in the Daily Connection (EY’s electronic daily newsletter at the time) about Los Angeles Tax Partner Lance Gordon and his activities as a reservist. Sicinski stored the article away. When he got serious about applying, Sicinski contacted Gordon, who Sicinski says not only “guided him through the process,” but ended up sitting on his commissioning board (the board that determines an applicant’s qualifications.) Houston and Afghanistan are nearly half a world apart. However, Sicinski sees another connection between his “foxhole” experiences at EY and his recent

28 alumni.ey.com Soon after joining Ernst & Young LLP in 1981, Los Angeles Alumni Council member Paul Ishimaru discovered something about himself that fundamentally shifted the course of his career. He was asked to lead a firm training program for first-year auditors. This experience awakened a passion for learning, technology and instruction that ultimately led him to become Chief Technology Director for the Los Angeles Unified School District (LAUSD) — the second-largest school district in the US, with more 650,000 students and 90,000 employees (including some 40,000 teachers) occupying 1,000 locations

Robert Thomas Robert photo: spread across 700 square miles.

Paul Ishimaru

Over the next 10 years, Ishimaru would continue serving as a member of the EY audit team while becoming increasingly Helping involved not just in the delivery of firm training, but in developing the supporting technology. Looking back, Ishimaru appreciates how “progressive” the firm was in its approach to learning — and to learning teachers technology. “We were really on the cutting edge, and it was a great training ground for my future role at LAUSD,” he says. By 1994, Ishimaru had fully migrated to the EY information technology team. In 2000, learn he joined Intellinex (now Xerox Learning Services), an EY spin-off.

Connect March 2014 29 In focus — noteworthy Alumni Council members

Moving up the learning curve the things the firm reinforced in us to concerned with sponsoring its annual When he arrived at LAUSD in 2003, help our clients,” are fundamental to the alumni social event. In the mid-’90s, the Ishimaru was a bit surprised to find that success of the initiatives he’s installed in focus shifted to providing learning and “things we were doing for a decade at the district. Ishimaru points out that most CPE credits. “Now,” he says, “we’re much EY were absent from the district.” One of school district employees, including its more interested in activities that promote his first challenges, says Ishimaru, “was managers and leaders, come from a purely networking and alumni helping alumni to get the district beyond its traditional, teaching background. “I’m different,” he through sharing advice and learning from live-learning methods.” He immediately says. “I’m always looking for ways we can each other’s experiences and successes.” got to work implementing a learning improve things through more training, Ishimaru notes that events still management system and looking for better utilization of technology and play an important part in the Council’s ways to bring the “people, process and improved processes.” engagement strategy. However, they are technology” approach he learned at EY to intended more as a way of attracting and The evolution of a Council the school district. Today, thanks to the re-engaging alumni who may be inactive Ishimaru holds the distinction of being district’s online training infrastructure, or not otherwise engaged. For example, one of the longest-serving members a mandatory teacher recertification last year the Council held a private alumni of one of EY’s longest-standing Alumni program, which previously took two years event in conjunction with the space shuttle Councils. During his first year at EY, he to complete using conventional methods, Endeavor exhibit at the California Science was asked to help coordinate the tennis is now doable for all 90,000 district Center. Ishimaru reports seeing alumni he activities for the annual Los Angeles employees in under a month and at a hadn’t seen in 25 years. When he asked office alumni outing, an event sponsored fraction of the cost. one of them why he decided to attend, the by the Los Angeles Alumni Council. He’s Ishimaru brings more than learning and alumnus replied, “How often do you get been involved ever since, both as an EY technology experience to LAUSD. Having to attend a private showing of the space employee and as alum. served clients up until the time he left EY shuttle Endeavor?” The LA Alumni Council Ishimaru is proud of the Council’s as a senior manager, Ishimaru believes his has also held events at the Disney Center, evolution. When he first got involved, auditing skills, including “an understanding the Gene Autry Museum and the Ronald Ishimaru says, the Council was primarily of metrics, process improvement and all Reagan Library, an event attended by 1,000 people. A “quality” connection When asked about his long-standing connection with EY, Ishimaru says it comes down to quality. “The quality of the people at EY — the respect, the professionalism — is what initially drew me to EY and it’s why I stay involved,” he says. For Ishimaru, serving on the Council not only keeps him personally connected but equally important, it allows him to encourage other alumni to stay connected as well. “EY has always been part of my professional life,” he says, “and I can’t foresee a time that it won’t continue to be.”

One of the longest-serving members of one of our longest-standing Alumni Councils, Paul Ishimaru serves as Chief Technology Director for the Los Angeles Unified School District — the second-largest school district in the US.

30 alumni.ey.com Alumni relations around the world As EY becomes an increasingly global organization, so does our alumni network. In these pages, we highlight some of the goings-on of our alumni around the world. Innovative Israel While steeped in ancient history, Israel has a thriving economy based largely on technological innovation. With some eight million EY Israel practice residents and a 2013 GDP of US$275b, Israel is frequently referred at a glance: to as the “Silicon Wadi (Valley) of the Middle East,” a leader in Four offices: Tel-Aviv, Haifa, telecommunications and computer hardware and software, biotech Jerusalem and Be’er Sheva and medical electronics, agrotechnology and solar energy. Approximately 1,800 people Largest accounting firm in Israel With roots dating back to 1937, the as a close connection with the US for assurance, tax, transactions EY practice in Israel officially became a Securities and Exchange Commission. and advisory services member of EY Global in 1994. Today, Our alumni relations efforts in Israel the practice is by far the country’s are centered on helping the several dominant accounting practice. With thousand resident alumni stay connected by some 1,800 people, EY is nearly double providing networking opportunities through is dedicated to helping our alumni manage the size of its nearest competitor. The professional and social events. We use social their careers after they leave the firm. Israel practice operates four offices networking groups on sites such as Facebook We provide personal consulting regarding throughout the country, as well as and LinkedIn to keep alumni updated on the career paths, CV assistance and job “desks” in New York City and other latest professional news, firm and alumni interview preparation. We also operate an major cities. These desks provide happenings, and relevant materials in the internal, volunteer-based “outplacement services to Israeli corporations operating finance and accounting world. agency,” offering our alumni a link to in the US, with a focus on international As part of EY’s “lifelong relationship” potential career opportunities. tax, global and US accounting, as well concept, the Israel alumni relations effort

Connect March 2014 31 Alumni around the world Meet Ronen Barel Chairman, Israel

What are some recent success stories Q from the Israel practice? Several years ago, one of the largest natural gas fields in the world was discovered in the Mediterranean in Israeli-controlled waters. The reserve can far exceed the needs of the country for the next 30 years. Therefore, the oil and gas sector is extremely important in Israel. We acquired a boutique accounting firm that specializes in oil and gas about two years ago. Combined with our existing oil and gas practice, EY now audits most of the companies and partnerships in that sector in Israel. Over the next few years, we expect significant growth in this sector. We are also leveraging our technology industry strength in Russia, where that sector is growing rapidly. EY has led this sector in Israel for the last 20 years, with a 60% market share. In terms of the technology sector, there are a surprising number of similarities between our two countries. Over the past 18 months, we have developed a joint venture with our EY Russia colleagues that will allow them to apply the disciplines and methods in their country that helped us achieve the dominant high-tech position in Israel.

What are some of the main changes or challenges you’ve seen in Qthe past two to three years, and what impact are they having? In some ways the EY Israel practice is a victim of its own success. We are the dominant firm and bigger in size, by almost 80%, than any of the other Big Four in Israel. That makes it challenging to increase incremental market share. But with challenge come opportunity and innovation. The change has caused us to look for new sources of revenues, such as with our oil and gas and Russian technology ventures that I spoke about earlier.

32 alumni.ey.com Itzhak Forer:

What’s ahead for the Israel practice; Paving the way Qwhat are you most focused on? Our most immediate challenge is to The success of EY in Israel can largely improve our growth rate. Due to our be attributed to Itzhak Forer, a one-time exceptionally strong position serving farmer whose vision and boldness assurance (audit) clients, the growth potential lies in our increasing the client have helped cultivate the dominant base in all service lines. Finding those accounting firm in the country. growth engines and adding them to our Forer’s success did not come easily, however. already strong practice is our biggest After completing his mandatory military service, challenge — and opportunity. Forer worked two jobs to support his financially struggling family. Before sunrise he’d be in How is EY Israel helping to build a the fields, tending to his vineyard and apricot Qbetter working world? orchard. By 9:00 a.m., he’d report to his job Building a better working world cannot selling building materials. Then, at 5:00 p.m., he’d trudge off for four hours of better express what we have been doing night school, studying economics. “It was a crazy, exhausting time,” he recalls. in Israel for the past few decades. As To make ends meet, Forer continued farming even after graduating the leader in our market, we understand from Tel-Aviv University in 1959 and landing an internship with Kost Lev-Ari that we have not only a responsibility to (predecessor firm to Kost Forer Gabbay and Kasirer, the EY member firm in give back to the community, but that we Israel). At the time, Kost Lev-Ari had about 15 people and two partners, both help set the pace for others to follow. nearing retirement. After just one year, Forer made a gutsy move: he asked Our people are highly involved in a wide to become a partner. “I had advanced quite quickly and felt I could handle the variety of education, entrepreneurship responsibility,” he states matter-of-factly. To his surprise, the partners agreed. and environmental programs that benefit But he had to sell his vineyard and take some loans to meet the partner buy-in our local communities and our country. fee, a huge amount for Forer at the time. We also encourage our alumni to take the With his vineyards sold and as 30% owner of his firm, in 1962 Forer turned same approach in the organizations they his attention to growing the practice. It was “slow going” for many years until work for, thereby spreading the building a a turning point in 1979. One of the firm’s smaller clients, a research and better working world message. development company, decided to execute an initial public offering in the US. Despite having little expertise with IPOs, Forer agreed to assist the client, calling Why is it important to you to stay it “a huge risk.” Fortunately the IPO was a success. But the experience made Qconnected with our alumni, and what Forer realize that, if he intended to do more IPOs, he needed the oversight are some of the things you are doing? of a large US accounting firm; otherwise, he was “headed for failure.” After We have so much in common with our consulting some of his clients, Forer reached out to EY, who he said “showed a alumni. It starts from a set of shared values great deal of interest in partnering with us.” and then branches out to having common Since then, the Israel practice has carved out a niche as the IPO “go-to” firm friends, needs and interests. Because in Israel’s burgeoning high-tech-driven economy. In 1994, the practice officially of this commonality, I feel it’s extremely became affiliated with EY with Forer as managing partner. By the time he retired important that we stay connected to as in 2007, the Israel EY practice had grown to 1,500 people, and today serves many alumni as possible. I personally try to about 60% of the Israeli companies traded in the US and about 30% of the attend every alumni event we hold and to companies traded in Israel. In 1995, Forer’s son, Gil, joined the firm and today keep close to our alumni so I can possibly serves as global leader of EY’s Global Cleantech Center. help them with any needs they might have. Under Forer’s leadership the Israel practice has also become, by far, the Our alumni are also our best ambassadors dominant merger and acquisition leader in the country. Forer says the many in the market, and that’s a powerful force transactions facilitated by EY have transformed Israel from being “foreign for helping us win in the market. currency-indebted” to having a “foreign currency surplus.” He takes tremendous pride in the part EY has played in making Israel, in his words, “a start-up nation.”

Connect March 2014 33 rd Board and Governance 3Forum convenes Some 200 EY alumni serve on the boards of directors of Fortune 1000 companies, and earlier this year, many of them attended our third EY Board and Governance Forum. Held in New York City, the two-day event focused on engaging our board- serving alumni in a dialogue about the issues they face as board members and better equipping them to serve their boards. For the first time, our alumni board members were invited Mark Weinberger, EY Global Chairman and CEO (left), talks to bring a fellow board member guest. leadership and football with Robert Kraft, Chairman and CEO of the Kraft Group and owner of the New England Patriots.

34 alumni.ey.com Above, left to right: Frank Borges, board member at Assured Guaranty, Ltd.; former US Senator Alan Simpson; EY Americas Managing Partner Steve Howe; and former US Secretary of Labor Robert Reich.

Right, left to right: Emil “Rags” Ragones, board member at the Federal Home Loan Bank of Boston; Nancy Altobello, EY Americas Vice Chair — Talent; and Jim DiStasio, board member at EMC Corporation and Northeast Utilities Corporation.

During the Forum, Robert Kraft, Chairman and CEO of the Kraft Group and owner of the New England Patriots, was interviewed by Mark Weinberger, EY Global Chairman and CEO. Attendees also heard a spirited but good-natured debate over a wide range of current economic and political issues between former US Senator Alan Simpson, who in 2010 served as co-chair of President Obama’s National Commission on Fiscal Responsibility and Reform, and Robert Reich, who served in the Clinton Administration as Secretary of Labor and is currently Chancellor’s Professor of Public Policy at the University of California at Berkeley. Other speakers included Robert Kindler, Global Head of Mergers and Acquisitions and Vice Chairman of Morgan Stanley; Tom Neff, current Chairman and former President and Managing Partner of Spencer Stuart US; and George Paulin, Chairman and CEO of Frederic W. Cook & Co., Inc. Tom Donaldson, Left to right: Debbie Kissire, EY East Central Managing Partner; Mark Manoff, EY Americas Vice Professor of Legal Studies and Business Ethics at the Chair; Kitty Dindo, board member at J.M. Smucker Company and ALLETE, Inc.; and Wharton School of Business and noted author and Mike Henning, former EY Deputy Director and board member at Omnicom Group, Inc.; speaker, moderated the event. Landstar System, Inc.; and Black Diamond, Inc.

Connect March 2014 35 Alumni in the news Our more than 250,000 EY alumni across the Americas are always on the move. In this section, we highlight some of the recent promotions, appointments and other achievements of your friends and colleagues.

Jason Armstrong has joined Comcast of Delphax Technologies. Armstrong James (Jimmy) Barge Corp. as Senior Vice President, Investor is Executive Vice President and CFO has been appointed CFO Relations. He previously served as of Patterson Companies Inc., a dental of Lions Gate Managing Director, Deputy Business Unit products and services company. Entertainment. He Leader of Goldman Sachs’ Technology, previously served as Media and Telecommunications Jeffrey Bairstow has been named Executive Vice President Research Group. Executive Vice President and CFO of Time, and CFO of Viacom and in Inc. He was previously at Health Net, Inc., various roles at Time Warner, including Steven Armstrong has been elected a public managed health care company, Senior Vice President, Controller and Chief to the board of directors of IMRIS Inc., where he served in various roles, including Accounting Officer. a designer of medical instruments and President of the company’s Government supplies. He also serves on the board and Specialty Services Division. Mark Bartlett has been elected as an independent director to the board of directors of T. Rowe Price Group, Inc. Bartlett formerly served as EY Baltimore Board conflict is subject Office Managing Partner.

of Charas HBR article Dale W. Boyles has been named Chief Solange Charas has published a report in Harvard Financial Officer of Noranda Aluminum Business Review, “Good Conflict Makes a Good Holding Corporation. Prior to joining Board,” examining how board dynamics influence Noranda, he was operating CFO for governance quality. Charas is an HR Analytics Hanesbrands, Inc. subject matter expert and PhD candidate at Case Western Reserve University’s Weatherhead Keith Brownlie has been appointed to the School of Management. Her doctoral research board of directors of Cancer Genetics, Inc., focuses on boards and C-suites, and the impact a company engaged in DNA-based cancer team dynamics and efficacy have on corporate diagnostics. He will serve on the board’s profitability. Additional publications by Charas audit committee. can be found in Corporate Board Magazine (July/ August 2013) and Harvard Business Review (May Joan Brubacher has been appointed 2013 and January 2014). President and CFO of Beamz Interactive, Inc., a manufacturer of household audio and video equipment.

36 alumni.ey.com New alumni snapshot Landon Althoff External Reporting & Technical Accounting John Buchta has been named Vice Edward Durkin has Manager, Monsanto President, Treasurer and Tax, at Staples, Inc. been named CFO of Company Interactions Corporation, Doug Charles has joined a provider of advanced Level at departure: Manager Korn Ferry, a single source conversational virtual Last EY office: St. Louis, MO of leadership and talent assistant applications for Current residence: St. Louis, MO consulting services, as customer care. Most President of the Americas. recently, Durkin served as CEO and Most valuable lesson I learned at EY He previously served 15 President of Tactical Communications I learned the value of hard work and years at Capgemini in Group, LLC., a provider of tactical data link commitment to quality — and no matter various executive roles. software solutions. what the situation, to always bring your own ideas and perspective to the table. Chad Cohen, CFO and Treasurer of Jeanette Eberhardt EY’s impact on my career Zillow Inc., an online real estate database, has been named Director The diversity of experience I had at has been awarded the Puget Sound of Business Development EY has made me a better all-around Business Journal 2013 CFO of the Year for Sperry Van Ness/ professional. Each engagement Award for a public company with 2012 DealPoint Merrill presented different situations and revenue of less than US$1 billion. Properties Corporation, a challenges. I’m very proud of my EY subsidiary of DealPoint background and the quality of the Jelka Dasent has been named Practice Merrill, a real estate property and asset experience I gained during my time with Director of 8020 Consulting, a Los management firm in Los Angeles. the firm. Angeles-based consulting firm. To me, being an EY alum means Having a network of professionals who are among the brightest in the Cregan and son open NYC restaurant accounting profession. The relationships Jim Cregan and his son Tom, and networks I developed during my who was listed among the time at EY, both internally and externally, Best Sommeliers in America are invaluable. I always know where for 2011, have opened Rouge I can go for quality resources for any et Blanc restaurant in New accounting or business-related matters. York City’s SOHO district. Most people don’t know Combining Vietnamese I enjoy running and have completed a ingredients with French number of half-marathons. cooking techniques, the restaurant has earned praise “ Inspiring leaders … are genuine. from such publications as The New Yorker and The New They share their perspectives, but York Times, which called it also invite the ideas of others while “an inspired neighborhood working collaboratively to accomplish restaurant that over delivers.” a common overall goal.”

Connect March 2014 37 Alumni in the news

Anthony Eifrid has joined Northern Trust Mark Gaumond has to lead the investment accounting practice joined the board of and oversee expansion of middle-office directors of Cliffs Natural services for the insurance practice. He Resources Inc., an previously served as Vice President and international mining and Assistant Treasurer-Investment Accounting natural resources at Lincoln National Corporation. company. Gaumond is a former EY Senior Vice Norlin Evans recently Chair — Americas. joined the Sentio Group in Atlanta, Georgia, as a Bob Guido was partner. The Sentio Group interviewed on the topic of helps organizations solve effective board governance complex process, financial for the July 2013 issue of and technology matters Directorship, the magazine and scale efficiency. of the National Association Helft is doing good of Corporate Directors. at Living Goods Scott Flaig has authored Cosmology: Guido is also an EY Alumni Council member Mike Helft is providing coaching and Faith & Science Reveal Universal Truth. and chair in Atlanta. leadership skills to help Living Goods, The text explores the origins of the a San Francisco-based non-profit. The universe through religious beliefs, dogma Jeanne Hillman has been promoted organization aids in the personal and and principles, as well as scientific laws to Vice President and Chief Accounting professional growth of entrepreneurs and theories. You can learn more at Officer for Weyerhaeuser Company. In who sell life-enhancing products — www.cosmologyfaithandscience.com. her 30 years with Weyerhaeuser, she has such as cook stoves, pregnancy kits served as Vice President and Controller for and solar lights — in rural Uganda and Operations and in various finance positions. Kenya. For more on Living Goods, visit livinggoods.org. Steven James has been elected to the board of directors of Molina Healthcare, a managed care company in Long Beach, CA.

A. Dale Jenkins has been elected to the board of directors of PowerSecure International, Inc. He is the CEO of Medical Mutual Insurance Company of North Carolina, a property/casualty insurance company.

Wayne Kauth has been selected as an independent director of the board of directors at Americas Bullion Royalty Corp., Ford marshals a gold-based royalty company. Keith Kravcik has been appointed CFO US Open Bonnie Kennedy has of Ovation Brands Inc., formerly Buffets, Brian Ford served as Marshal for the joined Square 1 Bank as Inc., parent company of six casual-dining 2013 US Open. In addition, he was Senior Vice President of restaurants. recently appointed to the board of Venture Capital Services. directors of NRG Yield, Inc. He also She was previously Claudio Laterreur has been named Vice serves on the board of trustees of Managing Director and CFO President, National SAP Practice Leader, of Drexel University, Drexel University at Trident Capital. Kennedy Neoris USA, a business and IT consulting College of Medicine School and also serves on the San Francisco EY Alumni company. Prior to joining Neoris, Laterreur GulfMark Offshore Inc. Council and on the University of Oklahoma served as Vice President, Strategic and Large Foundation Board of Trustees. Enterprise Accounts for itelligence USA.

38 alumni.ey.com Daniel Lebish had been appointed Jeanine Montgomery has been named Executive Vice President, Chief Operating Vice President and Chief Accounting New alumni Officer at Aflac Group Insurance. Lebish Officer of Beacon Roofing Supply, Inc. previously served as Executive Vice She was formerly with GeoEye, Inc./ President at Highmark Blue Cross Blue. DigitalGlobe, Inc., a public company that snapshot provides commercial high resolution earth Humberto Lopez has been appointed imagery and geospatial solutions. CFO of Intcomex, a distributor of Veronica information technology products to Latin Mark Parkey has been America and the Caribbean. promoted to CFO of Sosa J. Alexander’s holding Senior Manager of Thomas Manning has company, which owns and Revenue Compliance, been appointed to the operates 30 J. Alexander’s LinkedIn board of directors of Dun & restaurants in 12 states Level at departure: Senior Manager Bradstreet. Manning is a and 10 Stoney River lecturer at the University of Legendary Steaks restaurants in six states. Last EY office: San Jose, CA Chicago Law School and He previously served as J. Alexander’s Current residence: San Jose, CA most recently served as controller. Most valuable lesson I learned at EY CEO of Cerberus Asia Operations & Advisory I learned how to make effective business Limited, a subsidiary of Cerberus Capital Matthew Paull has been named to the decisions. EY taught me to always Management. Manning led EY’s consulting board of directors of Air Products and consider doing the right thing for the practice in Asia from 1996–2003. Chemicals, Inc. He retired in 2008 as team, for the department and for the Senior Executive Vice President and CFO company. With that in mind, I make my Deborah McDonald wrote, produced and of McDonald’s Corporation. decisions, never taking shortcuts that directed the award-winning documentary, could harm the business. 50 Year Old Freshman. The film chronicles Christopher Petersen, New York Air Suzanne Heim-Bowen, the first open water National Guard Staff Sergeant of the EY’s impact on my career swimmer inducted into the International 106th Rescue Wing in Westhampton, was EY provided opportunities and Masters Hall of Fame, and her experience recognized as 2013 National Guardsman experiences that shaped me as a joining her college swim team at the age of of the Year by the USO during its annual professional and made me a better 54. The film was recently screened at the gala in Washington, D.C. He also received person. My time at EY reinforced Carmel Art & Film Festival. the Bronze Star with valor for courage the importance of hard work, strong demonstrated during a 2012 rescue ethical values and a good network mission in Afghanistan. and community. To me, being an EY alum means Being part of a great intangible asset, the EY alumni network, where members Johnson is in share a strong business foundation that the winner’s enables one to build relationships and circle … again share ideas and information. Most people don’t know Congratulations to retired partner Bob I adopted two dogs and I love to spoil Johnson, owner of Action Express them! Racing, which in January took first and third places in the Rolex 24 At Daytona. “ Inspiring leaders … have a clear It’s the second time Action Express has won the race in the team’s four-year vision of where they want to go, the history. You can read more about Bob passion and drive to fulfill the goal and Action Express in the July 2013 and the genuine character to build issue of Connect. trust, which is crucial for creating the teamwork needed to achieve the set objectives.”

Connect March 2014 39 Alumni in the news

Julie Piggott has been Marc Rubinger has been named COO Charles Stead, retired CEO and promoted to Executive of MD Aligne, a leading provider of president of Hawaii Pacific Health, has Vice President and CFO of Telehealth services. been appointed to the board of directors Burlington Northern Santa of Sotera Wireless, Inc., a medical device Fe Corp. and its subsidiary, Gregory Rush has been named company. He also sits on the boards of App BNSF Railway, a leading Executive Vice President and CFO of Medicine Inc. and Leap4Life Global Inc. freight transportation INC Research LLC, a therapeutically company. She previously served as focused global clinical research Jim Turley, retired EY BNSF’s Vice President of Planning & Studies organization. Rush joins INC Research Global Chairman and CEO, and as Controller. from Tekelec, a leading high-tech has been appointed to the services provider. board of directors of Citi. Jay Powers has been named CFO and Vice President of Finance of Active Peter Schaeffer has joined GlassRatner Power, a manufacturer of uninterruptible Advisory & Capital Group LLC as a principal power supply systems and modular in the New York City office. infrastructure solutions. Brian Wing has been appointed CFO of Stephanie Schaff has been recognized eRecyclingCorps, a provider of carrier- Benton Reichenau has been appointed as the National Association of Professional grade incentivized, mobile device trade-in Head of Product Services for U.S. Women’s VIP Member of the Year for and reuse solutions. Bankcorp’s Wealth Management division. outstanding leadership and commitment within her profession. She is a Tax Manager Steven Zabel has been Stan Ross was featured at Fidelity National Information Services. named Senior Vice in the Los Angeles Times President and Chief Risk column “How I made it.” Brenda Stasiulis, CFO of Officer of Unum, a He discussed his successes MIQ Logistics, has been provider of financial in real estate and his named to Ingram’s 2013 protection benefits in the current role as chairman class of Women Executives- United States and the of the USC Lusk Center for Kansas City. She was one United Kingdom. Real Estate. He has been instrumental in of 10 women recognized the success of what is now called the Ross by the publication. Amit Ziv has been promoted to Minority Program in Real Estate, which Vice President, Business Operations, teaches real estate skills for revitalizing Development and Strategy of EPIX, a neglected urban neighborhoods. premium entertainment network.

Meyer and Kirby publish best-selling book Christopher Meyer and Julia Kirby are the co-authors of Standing on the Sun: How the Explosion of Capitalism Abroad Will Change Business Everywhere. In the book, Meyer and Kirby outline the coming shifts in the rules of business based on firsthand observations of organizations, particularly in the emerging economies, that are defying capitalism’s old rules. The book was named on the Financial Times’ list of Best Books of 2012. Meyer, a former partner, was the founder of Monitor Talent and serves on the boards of the Bankinter Foundation for Innovation, the Business Innovation Factory and the New Rep Theater, and the advisory boards of Innocentive and LaunchCyte. Kirby, a former director in EY’s Center for Business Innovation, is an author and editor of the Harvard Business Review.

40 alumni.ey.com Alumni events GALLERY EY alumni take great delight in reuniting with their fellow alumni and former colleagues, whether at a start-class reunion, an industry-specific forum or a former-partner

Left to right: Kristyn Sugrue (Vice President of Tax, BJ Wholesale outing. In the past six months, England alumni reception New Clubs, Inc.) and Kendra Hutchison (Vice President of Accounting, we’ve hosted over 50 events Affiliated Managers Group, and Boston Alumni Council Member). coast-to-coast. To learn about alumni events in your area, go to the EY alumni website (www.alumni.ey.com). While there, please make sure your Left to right: Shelly Barry (Senior Accountant, Harvest Power), contact information is accurate Amber Kulak (Senior Accountant, Atlas Venture) and Kerri Smith (Associate, AEW Capital Management). to ensure that you receive announcements, invitations and updates.

Left to right: Paul Krupinsky (Manager of Property Tax, BJ Wholesale Clubs, Inc.) and George Moses (President, George F. Moses Company Inc.).

Connect March 2014 41 Alumni events gallery

Northeast Ohio alumni reception at the new EY Cleveland office building

Left to right: Becky Osborne (Director of Human Resources, SS&G Inc), Myrna Furlong (Regional Director, SecureState) and Tami Bolder (Manager, SS&G Inc.).

Left to right: Steve Todd (retired partner and board member, Dover Orange County 15th annual alumni golf tournament Corporation) and Rich Marrapese (retired partner and Chief Operating Officer, Health Care Division, Shamrock Companies). Todd and Marrapese are both Northeast Ohio Alumni Council Members.

Cincinnati alumni reception

Left to right: Jonathan Gordon (Producer, Sony Pictures), Howard Lambert (Senior Manager, Ernst & Young LLP), Jeff Rusk (owner, DRJ Technologies) and Scott Sherr Left to right: Rob Moeddel (Senior Vice President, Fifth Third Bank), (Executive Vice President, Worldwide Marketing and Distribution, Sony Pictures). Eric Johnson (Senior Manager, Grant Thornton), Todd Immell (Partner, Ernst & Young LLP) and Matt Aquilia (Senior Relationship Manager, PNC Wealth Management). Phoenix retired partner luncheon

Left to right: Trey Isgrig (Managing Member, Isgrig Capital Management), Left to right: Nick Kissel (retired partner), Pam Michaud (Partner, Ernst & Young LLP) Maureen Zachary (Lead Development Consultant, Ernst & Young LLP) and L. Denny Seese (retired partner). and Tina Isgrig.

42 alumni.ey.com New York new alumni reception at Citi Field

Left to right: Jeff Tjon (Senior Manager, Technical Accounting and Policy — Derivatives Accounting, PepsiCo), Zach Dabah (Senior Manager, Ernst & Young LLP) and Jenn Hunt (Manager, Technical Accounting & Policy, PepsiCo).

Stephanie Daniels (Internal Audit Manager, Estee Lauder) and Mr. Met (official mascot of the New York Mets).

Left to right: Jasmin Chitrakar (Fund Controller, Madison International Reality), Lena Bakis (Manager, Ernst & Young LLP) and Roxana Wu (Manager, Financial Planning and Analysis, GFI Group, Inc.).

Pittsburgh alumni golf outing

Jeff Lowden (Vice President, Wealth Management, UBS Financial), Bill Lestitian (Managing Shareholder, Rothman Gordon), Pierre Larouche (former pro-hockey player for the Pittsburgh Penguins), Andrew DeSilva (Director, Client Services, RGP) and Brad Lusk (Managing Partner, Sisterson & Co, LLP).

Connect March 2014 43 Alumni events gallery

Seattle alumni reception

(Above) left to right: Ken Tracy (Partner, Ernst & Young LLP), Heather Mills (Executive Director, Ernst & Young LLP), Anne Welsh (Partner, Ernst & Young LLP), Codi Scott (Senior Manager, Ernst & Young LLP), Julie Slawson (Senior Tax Analyst, Amazon) and Wai Yan (Tax Manager, Global Tax Provision, Amazon).

Left to right: Ray Calvert (Contract CFO/Consultant), Lisa Wirick (Senior Executive Assistant, Ernst & Young LLP) and Doug Spear (Senior Vice President and Chief Financial Officer, RD Merrill Company).

Greater Los Angeles retired partner luncheon Kansas City alumni reception

Left to right: Scott Weidemeyer (President, Hometown Hearing & Left to right: Pat Niemann (Alumni Executive Sponsor and Los Angeles Office Managing Audiology, Inc.), Bruce Snyder (Alumni Executive Sponsor and Partner, Partner, Ernst & Young LLP) and Jack Duston (retired partner). Ernst & Young LLP) and Natalie Dorsey (Vice President of Tax, Blue Scope Steel North America).

Left to right: Jennifer Walker (Manager, Ernst & Young LLP) Left to right: Sally Anderson (retired partner and board member at Reliance Steel & and Bill Taylor (retired partner). Aluminum Co., California Board of Accountancy, Kaiser Ventures LLC and American States Water Company) and Tom Bussa (Partner, Ernst & Young LLP).

44 alumni.ey.com Philadelphia alumni reception George Berry (retired partner and Philadelphia Alumni Council Member) and Jay Bornstein (retired partner).

Left to right: Colleen Wolf (IT Consultant, Behunin & Associates), Ed Campbell (Senior Manager, Ernst & Young LLP), Avani Parekh (Vice President, Senior Manager Risk Governance and Control, TD Bank), Shola Oguntunde (Senior Manager, Ernst & Young LLP) and David Behunin (President, Behunin & Associates, and Philadelphia Alumni Council Member).

Chicago executive alumni reception

Left to right: Alice Schroeder (best-selling author and board member at Left to right: Tim Hohulin (Partner, Ernst & Young LLP), Kevin Ozan Prudential Pic, WebTurner Corp. and Cetera Financial Group), Kelly Grier (Corporate Senior Vice President and Controller, McDonald’s Corporation) (Chicago Office Managing Partner) and Randy Lewis (former partner, author and Mike Coyne (Senior Vice President, Chief Financial Officer — and board member at Wendy’s). Property & Casualty, CAN Financial).

Connect March 2014 45 Alumni events gallery

New Jersey alumni reception

Left to right: Carolyn Slaski (Partner and former New Left to right: Priyan Fernando (Executive Vice President of Global Business Services, Jersey Office Managing Partner, Ernst & Young LLP) and American Express, and Chairman, Brandix), Addison Hardy (Owner, Addison Hardy) and Michael Rubenstein (Attorney, Michael I. Rubenstein, Esq.). Rich Swatt (Vice President and Controller, Broadridge).

Minneapolis alumni reception

Left to right: Collyn Iblings (Accounting Manager, Mairs and Power, Inc.) and Neil Left to right: Chelsey Currie (Principal Financial Analyst, Medtronic) and Roers (Assistant Vice President, BMO Harris Bank). Holly Morehead (Manager, External Financial Reporting, Target Corporation).

Left to right: Mark Hornung (Partner, Four Points Partners LLC), Tom Dougherty (President & Governor, North Oaks Investments LLC), Darryl Thorvilson (retired partner), Steve Minder (CEO, YCN Group, LLC), Don Schumacher (retired alumnus) and Tom Teresi (CEO, Tom Teresi, Inc).

46 alumni.ey.com Indianapolis alumni CPE event and reception Left to right: Jim Meer (Vice President, Corporate Controller, Exact Target, Inc.), Clark Millman (Chief Financial Officer, Bindley Capital Partners LLC) and Ryan Judy (Director, Treasury Accounting, WellPoint, Inc.).

(Below) left to right: Amy Chambers (Senior Director — Global Tax, Eli Lilly), Dan Corsaro (Indianapolis Tax Market Leader, Ernst & Young LLP), Beth Brooke (EY Global Vice Chair of Regulatory and Public Policy), Robyn Werner (Indianapolis Alumni Executive Sponsor and Partner, Ernst & Young LLP), Bill Ellis (former partner) and Derrick Burks (Indianapolis Office Managing Partner, Ernst & Young LLP).

Nashville alumni reception

Left to right: Sid Pilson (Director, Lattimore Black Morgan & Cain, PC, and retired partner), Rick Greene (Vice President and Chief Financial Officer, Cumberland Left to right: Sam DeVane (Nashville Office Managing Partner, Pharmaceuticals Inc.), John Pearce (Partner, Ernst & Young LLP) and Bruce Sullivan Ernst & Young LLP), Anne Heeren (Campus Recruiter, Asurion) and (retired partner and board member, HealthCare Realty Trust, and Nashville Alumni Tammy Stephens (Director of Corporate Accounting, Healthways). Council member).

Connect March 2014 47 Alumni events gallery

Tampa alumni reception

Left to right: Al Narvades (Chief Financial Officer, Jagged Peak), Paul Flynn (retired partner) and Nate English (Partner, Ernst & Young LLP).

Left to right: Julie Dunphy (Vice President of Tax, Quality Distribution) and Rachel Braukman (Manager, Ernst & Young LLP).

Left to right: Jess Ellis (Senior Internal Auditor, Masonite International), April Jones (Tampa Alumni Council Member) and Dev Swaly (Rotational Financial Analyst, Syniverse Technologies).

Chicago retired partner luncheon Left to right: Phil Anderson (retired partner) and Bob Center (Partner, WMG Capital LLC, and retired partner).

(Below) left to right: Karen Cassidy Gardner (former partner and retired Vice President of Tax, Allstate), Ginger Pillman Johnson (former partner), Terry Riccio and Bill Kistner, retired partners.

48 alumni.ey.com Message from Jeff Anderson The EY Alumni Network A global movement Are you a member? Let me begin with a huge “thank you” to all of our alumni and Join the EY Alumni Network and enjoy these leadership for an incredible year of progress for EY alumni connection opportunities: relations in 2013. We launched an official US EY Alumni LinkedIn Events and reunion announcements Group, released our new and improved global alumni portal and CPE and learning opportunities strengthened our ties to our global alumni network. Quarterly newsletter I am pleased to share with you that EY’s Global leadership has Network with nearly 70,000 of your former committed to developing and building a leading-class alumni program colleagues and current EY people across the globe. Best of all, this includes the appointment of Michael DeStefano as Global Leader (Partner) for Alumni Relations. Join the network at Based in New York City, Michael has served as our Alumni Executive Sponsor for the Northeast Region and the Financial www.alumni.ey.com Services Office for the past five years. He has done a phenomenal job elevating the alumni effort there. In his new role, Michael will focus on better connecting our alumni relations activities around Connect on the go the globe while continuing to serve several strategic global financial You can also read Connect on services clients. Michael has already begun meeting with our alumni your tablet. And with a Wi-Fi relations teams in the UK, Germany and Japan and plans many more connection, you can easily visits in the months ahead. link to the many resources We will profile Michael in our September 2014 issue ofConnect referenced throughout the (US) to better acquaint you with his vision and objectives. This work publication. To download will, no doubt, leverage many of the best practices that you, our US the Connect app, go to your alumni, helped us to develop. preferred app store, search Please join me in congratulating Michael on his appointment to for “EY Connect” and click lead the global EY alumni network. “download.” If you are new to eMagazines, the download Sincerely, includes a tutorial to help you navigate all of Connect’s great features. Alumni LinkedIn Jeff Anderson group Director — Alumni Relations, US/Americas We have launched an official LinkedIn group exclusively for US alumni (and current people). The name of the group is “EY Alumni US (Official).” The purpose of the group is to encourage our alumni in the US to network and dialogue with each other, as well as with their colleagues still with the firm. Only verified Ernst & Young LLP alumni will be admitted. If you’re an Ernst & Young LLP alum based in the US, we invite and encourage you to join the group.

To view past issues of Connect, go to www.ey.com, select “About us” at the top of the screen and then “Our alumni.” From the website, you can access an online version of current and previous issues. You can also download and print a pdf file. A limited number of hard copies of past issues are available by contacting Jennifer Yim at [email protected]. Changing the working world is a long-term project. But we’re starting to lay the foundations. Discover how we’re building a better working world. ey.com/betterworkingworld

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