Volker Krug takes the reins at Deloitte in Germany

On the 1st of June, Volker Krug became the new chief executive officer of Deloitte in Germany. He has been tasked with steering the firm through the current crisis and building on the foundation left behind by departing CEO Martin Plendl.

Krug is a certified public accountant who brings with him vast experience in the accounting and advisory space. He joined Deloitte’s Audit & Assurance practice in 1999 and has worked in the firm’s Financial Advisory division since 2004, including more than half a decade at Deloitte in the United States.

Specialising in transaction services and financial due diligence, Krug has served a vast pool of clients over the years, most notably in the automotive sector. Original equipment manufacturers and international suppliers all fall within his clientele, which many suggest will work to his advantage as Deloitte looks to consolidate its position in the German advisory market.

Krug’s predecessor, the 60-year-old Martin Plendl, took Deloitte from strength to strength during his tenure, turning it into the fastest growing of the Big Four professional services firms. Deloitte grew by a staggering 18% in 2018, well ahead of KPMG in second place with 10%, as well as EY and PwC with 8% and 5% respectively. Last year, Deloitte’s revenues soared by 17%, enabling the firm to close the gap with number three KPMG to just €120 million.

Although Deloitte remains the fourth largest Big Four advisory firm in Germany, Plendl set the target of taking Deloitte’s revenues up to €3 billion by 2025, which would take it beyond the current sales figures of all its rivals. Krug is now tasked with taking over this challenging mandate.

To achieve the target, 47-year-old Krug will have to nearly double the firm’s current fee income of €1.7 billion over the next half a decade. “I look forward to this responsible job and thank the partners for their trust. I will do my utmost to continue the successful course of Deloitte as the fastest growing accounting and consulting company in Germany,” said Krug.

Krug’s experience with the automotive sector is undoubtedly an advantage in this regard, given that the industry is in a state of flux across Europe, and will be turning to the advisory sector for support. Krug’s appointment at the helm also signals Deloitte’s prioritisation of its advisory vertical, which has been amongs the strongest performers in recent years.

Obviously, the current covid-19-induced downturn has dented much of the immediate growth plans of the Big Four, including those of Deloitte. The short term priorities are focused on business continuity and safeguarding jobs and profitability, while towards the mid-term Krug will aim at making sure Deloitte successfully navigates the crisis while positioning the firm for a strong rebound.

Led by Ulrich Störk, PwC currently leads the Big Four groups in Germany, followed by EY, which is led by Hubert Bath, and KPMG, which is led by Klaus Becker.