Reflecting on the Chair’s letters of recent years reveals a striking constant: growing concerns about polarization, declining stability, and a loss of trust in institutions. These troubling trends continued to dominate in 2023/2024, and it does not seem likely that they will diminish in the coming years.
The uncertainty and unpredictability of the current political and economic situation is forcing KPMG N.V. to be uncompromising in its pursuit of trust and integrity. Given its role, KPMG N.V. is in the unique position of not only auditing its clients but also holding up a mirror to them. This is one of the reasons why the Supervisory Board was heavily involved in the answer-sharing investigation, which has now been completed. It was a painful period, exacerbated by the substantial fine imposed by the Public Company Accounting Oversight Board (PCAOB). The Supervisory Board fully supports the Board of Management’s decision to widen the scope of the investigation to examine the firm’s broader culture. Strengthening the foundations of KPMG N.V.’s culture of ethics and integrity will help the firm avoid unforeseen challenges in the future.
The role of the auditor is changing fast. Society expects a reliable audit of the accountability of controlled entities. These audits are increasingly extending beyond the financials to include sustainability data, now legally defined in Europe in the requirements of the Corporate Sustainability Reporting Directive (CSRD). This shift has been a key topic of discussion between the Supervisory Board and the Board of Management. The Supervisory Board believes that KPMG N.V.’s deep knowledge of these areas and its strong commitment to social responsibility means it is well positioned to be a key player in this new market, across both Assurance and Advisory.
Meanwhile, artificial intelligence (AI) is sweeping through society like a tidal wave, certain to have a major impact on KPMG N.V.’s assurance and advisory activities. The Supervisory Board supports the Board of Management’s strategy to expand AI services for clients and our people through substantial investments, in close collaboration with KPMG International.
Throughout it all, excellence remains an imperative for KPMG N.V. While quality scores have improved over the past few years, the Supervisory Board believes that the pursuit of zero-defect audit engagements must continue unabated.
KPMG N.V.’s future depends entirely on the firm’s appeal as an employer. Younger generations, in particular, want to work for a company that makes a real difference to society, which is why KPMG N.V.’s commitment to social issues is so important. The Supervisory Board also supports the ongoing efforts to build a diverse and inclusive company in all possible forms at all levels.
The Supervisory Board said goodbye to Gosse Boon during the year. After two four-year terms, this farewell was inevitable. We are grateful for his commitment and wise counsel. As Chair of the Audit & Risk Committee, he played an extremely important role over the past eight years. The Supervisory Board is delighted to have found a worthy successor in Pascal Visée, who will also take over Gosse’s role as Chair of the Audit & Risk Committee.
We also bid farewell to Claartje Bulten, who, owing to her demanding commitments at Radboud University, has decided not to serve a second term on the Supervisory Board. While we understand her decision, we will miss her expertise, particularly in the legal area. We hope to fill this vacancy in the near future.
Governance within KPMG N.V. is strengthened by the triangle of the Board of Management, the Supervisory Board, and the cooperative of equity partners. In 2023/2024, the Supervisory Board continued to value its close contact with the Board of Management and the cooperative. Engaging with the Works Council and KPMG International was also intensive and productive.
Despite the challenging economic situation and the answer-sharing investigation, KPMG N.V. successfully strengthened its market position during the year. This applies to both its Assurance and Advisory businesses. The Supervisory Board has great respect and appreciation for the partners and employees who worked hard to achieve this result – a performance that gives the Supervisory Board great confidence in the continued growth of the firm’s results and market position in the coming years.
Bernard Wientjes
Chair of the Supervisory Board