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Articles tagged 'korn/ferry'

Industry News

Korn/Ferry Launches New CEO Succession Service



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Earlier this month, Mike Gionta delivered a great presentation at the Fordyce Forum on succession planning for your recruiting business. He stressed the importance of planning your business for the future and building it today to make succession or retirement easier down the road.

Thought Gionta’s presentation was geared toward planning for the future of your recruiting business, succession planning most certainly seems to be a topic at top of mind for many in this industry, as earlier this week Korn/Ferry International announced the launch of Korn/Ferry CEO Succession, a new global offering that provides boards and CEOs with an innovative approach to executive succession.

Industry News

Korn/Ferry 4Q Profit Doubles



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Executive recruiting firm Korn/Ferry International said Wednesday in a live webcast to investors that its profit more than doubled in its fiscal fourth quarter, a positive sign that more companies are hiring, at least on the executive level.

The company also offered first-quarter guidance above expectations, and its shares climbed 7 percent in midday trading.

While the country is still struggling with high unemployment levels, Korn/Ferry, which focuses on executive-level employees such as chief financial officers or board directors, has bounced back. The results mark the third straight quarter that its net income has more than doubled from a year earlier since it returned to a profit in the first quarter of the year.

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U.S. CEO Pay ‘Grotesque’



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The discrepancy between American and international CEO compensation is due to greed, plain and simple.

That’s the findings in the latest issue of The Conference Board Review, which surveyed several leaders at global recruiting firms. The article attributes this behavior to a “pervasive form of greed engendered by the modern worship of high-flying American CEOs such as Jack Welch as all-conquering deities who deserve ever-bigger bags of gold as tributes.”

Richard Emerton, head of the CEO practice at Heidrick & Struggles in London, points out that “a perception for the last 10 years in Europe is that the level of remuneration for U.S. CEOs has been excessive.”

Meanwhile, Manfred Kets de Vries, who heads the Global Leadership Center at INSEAD in France, calls  U.S. CEO pay “a little bit grotesque.” Still, he acknowledges that many international CEOs secretly look upon American top executives with envy.

And because CEOs are an international resource, their “market value” will be set by a global standard, with international firms fighting for talent.

Explains Michael Bekins, senior client partner at Korn/Ferry in Hong Kong, “We are now faced with having to recommend comp packages for C-level recruits that are higher than what Asian companies are used to.”

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Korn/Ferry Turns 40!



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In celebration of the big 4-0 anniversary, Korn/Ferry has created a 40th-anniversary website, www.kornferry40.com. The site features photo galleries, video footage, and a historical timeline of key events that highlight current and former employees as well as past and present achievements.

Some of the more interesting tidbits showcase just how far recruitment technology has come. Consider that in 1986, Korn/Ferry instituted the first “computerized candidate database” and in 1997, it launched a corporate website for clients and candidates.

The firm also is offering a biweekly trivia contest with prizes, too.

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Korn/Ferry Sees Surge in CEO Succession Projects



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Korn/Ferry has reported a 400% increase in its engagements with corporate boards of directors on CEO succession planning consulting projects for the first six months of the current fiscal year.

The company says this is more than twice the number of succession planning projects in the prior two years combined. Korn/Ferry adds it is currently working on more than 25 CEO succession planning projects for a variety of clients in the public sector across multiple industries.

Joe Griesedieck, vice chairman and managing director of Korn/Ferry’s Board & CEO Services, said CEO succession planning “continues to be one of the most important responsibilities that the board of directors holds” since planning for CEO succession is not an individual event, but a strategic process.

Although corporate boards consider CEO succession to be one of their most important jobs, Korn/Ferry claims that about half currently have a succession plan in place.

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From Korn/Ferry’s Senior Management



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Some short notes from a conversation I just had with Robert Damon, president, North America, for Korn/Ferry:

  • “Things are better today than they were yesterday,” Damon says. The strongest area: Mid-market companies, in all industries, bringing in about $50 million to $2 billion. That’s because, he says, they lack bench strength, are lean, and have held off hiring “and can’t hold off any more.” On top of that, they’re often private-equity owned and those companies are looking to change management to drive change in companies “through these murky times.”
  • CFOs who can control costs are in demand, as are CMOs who can grow businesses.
  • As far as Korn/Ferry itself, “we did our streamlining so we’re stable,” Damon says. “For us as a firm, things have leveled off. I see green shoots. August and part of September will probably be a little slow because it’s vacation time. But going into the last quarter, we should see some momentum, and I feel optimistic about the 1st quarter (of 2010) being a good quarter on a relative basis.
  • “What we’re seeing in the marketplace is companies are looking to embrace the whole spectrum of talent management — not just search … we’re the only search firm that has morphed into talent management,” he says, referring to services such as onboarding, coaching, change management, and assessment. “The other firms talked about it, but they’re really fakes.”

“Now’s the time to [be] bold,” Damon says. “Great companies now are looking at ways to capitalize on the economic turmoil to look at breakout strategies and acquire human capital talent and bring in the best and the brightest for the future. Being proactive about the talent management function in this turmoil is what really good companies are thinking about.”

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Korn/Ferry Hits 6-Year Low



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During a live conference call with investors on Wednesday, Korn/Ferry said demand for the company’s suite of services experienced a “precipitous decline in the last eight weeks of calendar 2008.”

Shares fell nearly 14%, or $1.30, to $7.89. This is the lowest level since June 2003.

Korn/Ferry CEO Gary D. Burnison said the “unprecedented” economic environment has impeded business throughout the world.

“Despite our leading brand and diversified strategy, unfortunately we have not been immune from the recession that has affected virtually every company conducting business today,” he said.

The company also said it plans to lay off staff and close some offices in Q4 2009.

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Korn/Ferry: 55% of Execs Ponder Global Relocation



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The majority of executives around the world say they are willing to relocate internationally for job opportunities in today’s tumultuous economy.

According to Korn/Ferry’s latest “executive quiz,”  85% expect more job losses in the global labor market in 2009, and 78% expect unemployment to rise in Q4 2008. Given the perceived volatility in the labor market, executives report an extreme willingness to chase job opportunities around the world; 84% say they are willing to consider relocating, with 55% willing to move internationally for their next position.