Deloitte Elects Partner as Chair

Accounting firm Deloitte & Touche said Tuesday that Sharon Allen, its top partner in Southern California, was elected chairwoman of its U.S. board of directors.

The move was part of a broad leadership transition at the international accounting firm that included last week’s announcement that William Parrett, the current U.S. president and managing partner, would become Deloitte’s global chief executive.

Allen, 51, a current board member, is the firm’s regional managing partner for the Pacific Southwest, including Southern California, Arizona and Nevada.

Although the Pasadena resident will give up her position directing Deloitte’s 2,250 staff members and 250 partners in the region, she will remain based at the firm’s Los Angeles office. Deloitte has not named a replacement in her position.

“This is the first time we will have one of our lead executives based on the West Coast,” Allen said. One of the top four international accounting firms, Deloitte is headquartered in New York.

Allen said one of her roles will be to take a “proactive” stance helping to restore the integrity of the accounting profession, which has come under a cloud after a series of notable audit failures and fraud allegations in recent years, including the bankruptcy filing of Enron Corp. and the subsequent dissolution of its auditor, accounting firm Arthur Andersen.

“The industry has been tarnished but there is a strong and ethical commitment to quality at our firm and in the profession,” Allen said.

She likened her new role to that of a board chairman in a company that has split the traditional role of chairman and chief executive. She will lead the firm’s governance processes, serve as the U.S. representative on the organization’s Global Governance Committee and oversee the firm’s relationships with a number of major multinational clients.

James H. Quigley, 50, co-regional managing partner in New York, New Jersey and Connecticut, will become Deloitte’s U.S. chief executive and will steer the firm’s strategic direction.

Barry Salzberg will become the firm’s managing partner. Salzberg, 49, is a U.S. deputy managing partner, head of the U.S. tax services practice, and a member of the executive committee.

Deloitte’s leadership transition was triggered by CEO James E. Copeland Jr.’s decision in September to retire June 1.