| Show lr'rvx't4rTrTcv'T-4-i-c-frrirN- F4 The Salt Lake Tribume r BUSLNESS Continued from F-- 1 high-lev- J NEFF President of recruiting firm THOMAS nus for the job to be filled regardless of the search's outcome Contingency firms used searchgenerally for lower-leve- l es are paid on successful completion of an assignment Gerard R Roche chairman of Heidrick & Struggles and a headfor placing inhunter dividuals atop the nation's largest corporations says the secret to recruiting is trust "I feel'' a little guilty that the real essence of me being successful is not my great brain or my great analytical wisdom or my instant ability to recall names" he said well-know- d Russell Reynolds and Heidrick & Struggles are paid a fee of usually the starting salary and bo- - one-thir- d n el professionalized and that's good" said Al Osborne a profes- sor at the John E Anderson Graduate School of Management at the 1 i 1" IP 1 ' Contingency firm: It can be one of several firms working on a given assignment It is paid only on successful placement of a candidate and is usually hired for lower-levsearches than retainer firms The fee is usuald the first year's sally and of the executive bonus ary placed Top 10 US Retainer Firms Ranked by Revenue el one-thir- - Internation- al $611 million NI 2 Heidrick & Struggles $497 million II 3 Russell Reynolds Associates $490 million 4 111 million $400 SpencerStuart 1188 Witt-Kieff- ODD y Ray & Co 1E6 AT Kearney Executive Search 1166 117 Lamalie Ararop International 1164 1118 Egon Zehnder International $101 million Ford Ha119 delman & Lloyd 1101 million 1110 Ward Howell International $100 raillion Source: Execute Recruiter News Fitzwilliara NH Top 10 US Contingency Firms (1992 revenue available only for Management Recruiters the largest firm Others are in random order) 1 Management Recruiters International $175 million 111Dtmhill Personnel System Source Services Corp Accountants on Call IIIMSI International Romac & Associates 11 Sanford Rose Associates E Ryan Miller & Associates ESearch West Inc 11 The Consortium (Source: Executive Recruiter News Fitzwilliam NH) one-thir- Korn-Ferr- Pb I I4 b 52 1-4- 444 s1- - 11111 1 ' V kb4tt 0 ti L1 7 4 1111141:1 - aD 0 0 0 0 tj4 i -- - " emu: Err I tI TYPES OF maturrEas: Retainer Firm: Hired to perform a given search and paid a d the fee of ususally first year's salary and bonus of the executive placed The fee is not dependent on the outcome of the search and is usually paid in thirds — one each month — with payment completed in three months III 1 Paul muTton 4 ::44-- : - I 5 PILESS ASSoCIATED Fr4111" Salt Lake City if 1 Eastman Kodak Co recently retained Roche to search for a new chief executive Neff and Roche together in an almost unprecedented pairing of headhunters recruited Louis V Gerstner to lead International Business Machines Corp "Sooner or later somebody may find another way of doing this like an executive dating service: 'If you'd like to be considered for key positions please fill out the following questionnaire'" quipped E Kirby Warren a professor of management at Columbia Business School "You may get a Charles Schwab of the executive search business" Until then recruiters will remain on the job and executives will continue listening for the telltale "Pssssst" ell if Who's Hot Ilho's Not in Headhunting Business their use ( ( ill a - University of Califorrda Los Angeles The value of a top executive to a large company — in terms of potential growth in sales profits and stock price — can far exceed the cost of even the most expensive searches he said Others however are more skeptical particularly of the most expensive highest-leve- l searches But if companies are cringing at the cost of search firms they don't seem to be cutting back on I 4111 1070 So Main St A some- body in the eye and say 'Hey you can trust me 'What's going on? What's the real story?'" The ahility to convince an executive to take a new job often at the cost of leaving a position at another company is an essential talent for any recruiter "Someone will argue that anyone can put together a list for 'X' assignment That may be the case" said Neff "But not everyone can gain access to the people they need to talk to in the course of an assignment" Identifying candidates as Neff suggests may be the easy part Most large recruiting firms have research staffs and compile electronic lists of possible candidates Search firms will seek them out contacting successful executives at many companies Potential candidates will be screened and interviewed Russell Reynolds for instance keeps a database that contairs information on 261000 different executives "The business is increasingly Sarzeone will argue that anyone can put together a list for 'X' But not assigrunent can gain access evergone to the people they need to talk to in the course of an assigrunent 9 9 of Russell Reynolds comes down ta a simple concept: the power of the individual -What companies have now found is that through the introduction of new people you can institute change faster" Brown said"The results come on You bring in different points of view You can speed change" Executive recruiting is a highly personal business and much hinges on relationships developed during the years particularly with the board members and executives who hire search firms Companies often will call the search firms they're accustomed to doing business with to initiate a search much like a corporation might call its law firm for a legal problem that's arisen Sometimes a couple of search firms must compete for an assignment For searches so- retainer firms are generally used Those companies which in- clude SpencerStuart "It's being able to look -- nonommemon high-calle- 19908 Topsv-Turv- y - Sunday October 3 1993 I Headhunters Profiting iii cr' yu v-r- : "V-- gm 7(tc)'7? : 1 i)11i0-01co- r Othar--i:s- jig t 114 ' 4N Of C 4111 I 1 IINIZ4IP)IiNt441-- ) owl t:: ": i- : ::::::::::::::::AAmftmoa:vmw:zawoAm-s:om:m:mo§momtwx-e??-mmmm?omxo::me:ioi:- I t i t 0e""""a I I - I October 8th 1994 Cadillacs f ' t 0"N ''''t17:!e - !p t Our J11(5VVF W VVIUI have do seeing W : ' : "d Ilitlb 11 idolii 0 1 t11111F41" r h 19-4 - -- lc 'II I I I itil O )C0 f How our A f‘ tif I 4 ' ri Double CD works Adjusted Interest Rate with hutiltional Interest Points 3'75 Adjusted Interest Rate with Additional Interest Points 381 Adjusted Annual PorcontRge Yield with Additional Interest Points Current Annual Percentage Yield Current Interest Rate I 303 300 add additional interest points to our already competitive rate Then when your CD matures just roll your money into certificate and we'll another short-teradd additional Interest points to the rate in effect when you renew Not only do you earn yourself a great return—twice—you get security because m I e 25 325 329 I I m A ° Six-mon- th Additional Interest Points When you make and renew a short-terdeposit in a Key Bang certificate we'll give you additional interest points—twice There's no catch Simply choose the term you prefer-- 6 or 12 months—make a deposit of at least $1000 and we'll o4 1140144011101111 11h------ 1411Vt Additional Interest Points Read this ad then read it again and you'll understand our new Double CD V AC-- 11" 0 To 329 325 50 Current Annual Percentage Yield Adpicted Annual Percentage Yield with Additional Interest Points I your money's insured by the FDIC rlus the added convenience of dealing with your neighborhood bank So if you want to get the most out of your money choose a Double CD at your neighborhood 0ANK I iii hard-earne- d Key Bank You'll be glad you did I - I -1 America's neighborhood banIC You'll be glad you did I Yietd al 000 The is the Annual PerCentage YWid in WWI RS of 730Cks Penalty may be required lot eerly wendrawai and mad reduce the earnings On the occount Additi3nal interest points appty to One WOWS' Only and ate ridded to rates In effect The minimum balanCo to 01311 an accouM and obtain this Annual Percentage tor certificates Over $100000 Of On key investment Centre:ate Account - INA's rho" cotite is availsOlo at key Bank nt Utah offices only Pet aey Bank logo is a regiblered trademark of keyCorp Memtor FDIC It the time 04 renewal interest is compounded quarterly Not available I Ao 01 o oh) For2s-o- — One-ye- ar Current Interest Rate Ox §k oroluippo)) (orogsiolu fit!! Double CD wolics Cy 11P71:r 011taINIMMENiNMWdWOlrnW11'gWMMMOWMtl On' tea I' eD How our B' ad ' 014)11(4140qt ao 11 1111111h c2D5 o ! 1 w 11 t I 4 tj t eILJALOnt411alkAA6&Afta& AwAika4J16AmbAul |
