A History of Retained Executive Search Consulting Presented by the Association of Executive Search Consultants In Celebration of Its 50th Anniversary

Transcription

1 A History of Retained Executive Search Consulting Presented by the Association of Executive Search Consultants In Celebration of Its 50th Anniversary

2 Table of Contents A Growing Business in a Growing World...3 The Source of Search...4 Global from the Start...7 The Rise and Rise of the Specialist...9 A Stable - but - Changing Industry Structure...10 An Association with Excellence...11 Going Global...12 Ongoing Outreach...14 Future Forecast: Growth Amid the Storms...14 AESC Board and Council Chairs...16 Members of the AESC...17

3 A Growing Business in a Growing World Now that the retained executive search industry has reached the fifty-year mark, or even longer by some counts, it is safe to say that the profession has reached maturity. Largely starting as a by-product of management consulting just after World War II, executive search has since grown into a global consulting industry with annual revenues of over $10 billion. This article, presented by the Association of Executive Search Consultants (AESC) on the occasion of its own 5Oth Anniversary, outlines the history of executive search and of the AESC over the past five decades. In a sense, and for good reason, the history of executive search has paralleled major trends in business, organizations, and socio-economic development over the past fifty years. In the United States and then later in Europe, post-war prosperity, the changing nature of consumer demand, industrial and technological progress, and heightened competition all contributed to the development of a new type of business organization. This organization embraced modern management methods, transparency regarding financial performance, and meritocracy. Previously, many organizations had been based upon assumed loyalties, lifelong employment and paternalism. Global GDP World Exports of Goods and Services GDP (Trillions of Dollars) ,000 8,000 6,000 4,000 2,000 0 Per Capita GDP (Dollars) GDP Source: IMF Per Capita Trillions of Dollars However, in the 1960s and 1970s, as international trade increased and domestic markets became increasingly competitive, companies needs for experienced executives outpaced their ability to fill those positions internally, and a more open market for management talent developed. Corporate loyalties broke down on both sides as executives realized that they might achieve more rapid career growth outside their alma mater, and companies shed executives in cyclical cutbacks and restructurings, or in the new game of mergers and acquisitions so successfully launched by investment banks. 3

4 The Source of Search As client organizations grew in new markets around the world, executive search firms expanded to meet their needs. A number of US and eventually European search firms followed the international expansion paths of major US and European companies. As a result, from 1970 through the 1990s, executive search spread steadily, first within Europe then into Latin America and Asia. Paris Hong Kong London As clients saw the effectiveness of employing a dedicated consulting service to help them locate and hire executive talent, they commissioned searches more broadly within their management ranks. Companies that had filled positions through old boy networks saw that engaging search firms might help them attain a competitive edge and inject new thinking and innovation into their cultures. This expansion of demand set the pace for the growth of the executive search firms that populate the industry today. The business flourished in spite of setbacks during recessions, and by the late 1980s, even nonprofit organizations, higher education institutions, and government agencies had started commissioning searches to fill key positions. By 2000 and to this day, few major organizations needing to fill a key position in their management ranks do so without considering the engagement of a retained executive search firm to assist in the process. Executive search consulting originated from the recurring need of management consulting firms like McKinsey & Company, and Booz, Allen & Hamilton to recruit executives who could implement a recommended strategy to solve a client s problem. Indeed, back in 1914 Edwin G. Booz said, Often the best solution to a management problem is the right person. Even before World War II and through the 1940s, a handful of firms were in the business of recruiting executives. Executive Manpower, run by William Hertan, and eponymous firms established by McKinsey & Company veterans Jack Handy and Ward Howell, and by Booz, Allen & Hamilton alumnus Sid Boyden, all recruited executives for client companies. In fact, Thorndike Deland arguably formulated the concept of executive search back in 1926, when he founded the first retained executive recruiting firm. The firm focused on retail executives and charged clients a retainer plus a commission of 5 percent of the hire s first-year compensation. 4

5 A number of early retained executive search firms were founded as offshoots of management consulting, four by McKinsey & Company and Booz, Allen & Hamilton alumni and two by alumni of major accounting firms. McKinsey and Booz Allen also operated their own executive recruiting functions. (McKinsey exited the field in 1951 when Ward Howell left to start his own firm, while Booz Allen continued searches for clients until 1980.) Sid Boyden The search consultants who came out of these firms applied the tenets of management consulting to their endeavors from the start, thus laying the foundation for the legitimacy of retained executive search as a consulting discipline. Gardner W. Heidrick While relatively few of the executive search firms of the 1950s and 1960s survived to see the next century, today s five largest global firms all date to those decades. Boyden, which predated all of them in 1946, is still a thriving business and was one of the earliest to become international. A number of smaller firms such as Battalia Winston were also founded in those years and are still going strong. The founders of these firms promulgated the principles of executive search and, each in their own way, helped to create the image of the professional executive search consultant. Heidrick & Struggles was founded in 1953 by Gardner Heidrick and John Struggles, both Booz Allen veterans dedicated to high ethical standards. John Struggles had worked as a personnel manager for Montgomery Ward and then in Washington D.C. in President Eisenhower s Department of Commerce. Heidrick recruited Struggles to be his partner, and they set up shop in Chicago s financial district in an office they rented for $100 a month. Their first three clients were West Virginia Coal & Coke Corporation, Northern Trust, and Continental Can. The business grew rapidly, converting its structure from a partnership to a corporation in John E. Struggles 5

6 In spring of 1955 Heidrick & Struggles hired Spencer Stuart, who left about a year later to form his own search firm, also in Chicago, which in retrospect may be considered the birthplace of retained executive search. An alumnus of Booz, Allen & Hamilton, Stuart also conceived of search as a consulting discipline but was concerned that after starting his firm, he had joined the field too late because it seemed so crowded! Stuart s initial client required a manager for its Venezuelan operation, thereby marking his firm international from its inception. In 1969 Lester Korn and Richard Ferry founded Korn/Ferry International in Los Angeles, having met at accounting firm Peat, Marwick, Mitchell. They possessed sharp instincts for public relations and marketing and early on began producing press-worthy reports such as their Index of Executive Hiring and their Board of Directors Annual Study. Russell Reynolds Associates, founded in 1969 by Russell S. Reynolds, Jr., a Yale graduate and former commercial banker with J.P. Morgan, cultivated a style of its own. By 1984, the firm s Park Avenue headquarters featured a Steinway piano in the reception area and a Winston Churchill painting in one of the interviewing rooms. Reynolds, now chairman of RSR Partners, said, I owe everything I know about the search business to William Clark, who ran a highly regarded search firm that bore his name and had been spun off from accounting firm Price Waterhouse. Reynolds had worked at William H. Clark Associates for three years before setting out on his own. Clark s company subscribed to a code of ethics that precluded competing assignments, approaching an employee of a client firm, and making false statements for research purposes. In that same vein, Russell Reynolds Associates also stressed virtually enforced a highly collaborative one firm culture based on shared values. Russell S. Reynolds, Jr. 6

7 While meticulous in their approach, these practitioners were also ambitious, focused, energetic, and entrepreneurial. The search consultant s lifestyle has always featured significant travel, extensive and often odd hours, and performance-based compensation. Search consultants have also long been characterized by business savvy, psychological awareness, superb social skills, and disciplined work habits and first-rate wardrobes. From their inception executive search firms had prided themselves on their low profiles. But this began to change when Korn/Ferry International introduced more of a marketing approach to the business. In the late 1950s, Heidrick & Struggles hired Oscar Beveridge, who had directed public relations at Booz Allen, to get their firm on the map. Beveridge created the firm s first brochure, as well as a hiring index that predated Korn/Ferry International s, and a long series of executive profiles. Fortune Article on Headhunters, October 1978 Tom Neff Gerard R. Roche In spite of these efforts it was only in the late 1980s and early 1990s that journalists began to follow the industry more closely and executive search consultants on both sides of the Atlantic came to widespread public attention. In those years several CEO searches by Spencer Stuart s Tom Neff and Heidrick & Struggles Gerry Roche, for companies like IBM, Coca Cola, and The Walt Disney Company, received strong media coverage. People not only became aware of search consultants but came to feel that if these household-name companies relied on them, then they must be doing something right. Once some of the larger search firms began to issue public offerings of shares in the late 1990s, public relations, industry analysis, and media attention became staples of the industry. Today many firms engage in PR and promotional activities which have contributed significantly to dispelling myths about executive search while expanding market demand. Global from the Start Executive search has been an international business from its inception. The 1950s and 1960s saw the rapid development of the US multinational corporation and as those giants expanded they needed managers for their operations overseas. Search consultants often set about finding local executives for overseas openings, which was the approach taken by Spencer Stuart who flew to Caracas for his very first assignment. 7

8 Search firms soon followed the example of their clients and established their own foreign offices. Search caught on earliest in the United Kingdom, where low language and cultural barriers made Britian a logical choice for many US companies European operations. London s position as an international financial center also enhanced the UK s attractiveness. From those beginnings, search spread to other European countries, with firms offices often springing up along US corporate expansion routes, especially in Brussels due to its role as the headquarters of the European Union in the 1990s and 2000s. AESC member firms around the world, 2008 But as Anthony Saxton, who had established Saxton Bampfylde in London in the early 80s, pointed out, search was not solely a US export. Alongside the US firms, well-regarded home-grown firms developed here and on the continent, such as Whitehead Mann, GKR, Berndtson International, Carre Orban, and Switzerland-based Egon Zehnder. The latter firm was founded in 1964 by a Spencer Stuart alumnus of the same name. 8 based on Q1-Q3 growth In the past ten years globalization has transformed the world economy, management practices, and the availability and distribution of executive talent. With major demographic shifts looming in the western economies as the baby boomers retire, and surging demand from emerging markets, the War for Talent predicted by McKinsey & Company ten years ago has clearly arrived. This helps to explain the nearly 120% increase in global demand for executive search services from 2004 to 2008.

9 As the talent pool has shrunk, search consultants have needed to research a broader range of sources on a multicountry basis. Today s search assignments may easily be commissioned in London by an Indian company seeking executives with international responsibilities to be based in Paris, Shanghai, or New York. Client organizations have become increasingly flexible about terms and conditions of hire and will often consider location-neutral appointments. As demand for executive search has increased, so has the worldwide distribution of that demand. Thus the industry market shares of the regions have changed in favor of the Asia/Pacific and Latin American regions, at the marginal expense of North America and Europe. Search Industry Regional Market Share, Q To respond to this dramatic rise in demand from the emerging markets, many search firms and networks have opened new offices in China, India, Russia, and smaller markets, including Poland, Turkey, Romania, the Ukraine, and the United Arab Emirates. As a result, today there is far greater representation of retained executive search in countries around the world than ever before. Although fallout from the global financial crisis will affect industry fortunes in 2009 and possibly beyond, the underlying trends of globalization and the talent shortage will persist, which bodes well for the long-term future of the industry. The Rise and Rise of the Specialist Specialists can play an important role in executive search. Among the first firms to recognize this was Korn/Ferry International, which founded its first specialty practice in real estate in Other firms followed at varying speeds with Heidrick & Struggles holding off until the 1980s. Today, large firms house entire practices dedicated to specific industries or functions or both. Many integrated firms and networks have industry and functional teams that cross geographic boundaries; some boutique firms focus on a single industry or function; but generalist firms are still found in many parts of the world. Functions served by specialist practices range from finance and accounting, to sales and marketing, to HR and IT. Industry specialization 9

10 extends to, among others, financial services, high technology, consumer products, higher education, health care, life sciences, and retail. Many firms have practices dedicated to CEO and board searches. Presenting a diverse slate of qualified candidates is the goal of every search, and some firms have designated diversity practices which may team with industry or functional experts on searches. In addition some boutique firms, such as Carrington and Carrington, The Desir Group and The Prout Group, focus on diversity searches. While virtually all search consultants recognize the value of specialization, some seasoned practitioners see it as more limiting for novice consultants than working as a generalist. Anthony Saxton stated, I ve found great satisfaction working in diverse fields. I ve also found great success in areas where I had little experience, perhaps because I had few preconceptions about where the best people might be. A Stable - but - Changing Industry Structure Executive search always has been, and remains, an extremely merit-based business, with low barriers to entry and highly-entrepreneurial values. Perhaps the most significant change in the industry has been its global growth in terms of firms operations and the scope of many searches. Today s clients typically want search firms with global reach when it s called for, and the industry has responded accordingly. The largest firms have offices in virtually every major business center, including key cities in developing markets. Many small to mid-size firms have joined with their counterparts throughout the world to provide global reach by means of networks or federations under a common brand name. In these organizations, participating firms maintain their individual ownership but do business under one international banner, and share clients, resources, and specializations across geographic markets. Firms using this very successful model include Ray & Berndtson, TRANSEARCH International, The Amrop Hever Group, Signium International, Penrhyn International and Stanton Chase. The challenge of search has always been to meet the needs of clients. Judith von Seldeneck, CEO of Diversified Search Ray & Berndtson, noted that, Many clients are extremely savvy about search. Some, particularly larger companies, have their own contracts that stipulate fees, expenses, and conditions, and some have preferred provider programs. Some companies even have internal search functions. Be that as it may, it can be extremely difficult for an internal recruiter to provide the objectivity, flexibility, resources, reach and motivation that an executive search firm brings to an engagement. Internal talent management programs have been only partially successful in meeting succession needs, especially at senior levels. The volatility, competitiveness and unpredictability of the supply of senior executive talent suggest that there will always be a need for retained executive search consulting. 10

11 An Association with Excellence Association of Executive S The Worldwide Association for Retained Ex Executive search consultants realized early on that they would benefit from an association that would enable them to set ethical and professional standards, advocate for the industry and for member firms against restrictive legislation, and broaden public understanding of their business. Paul Ray, Jr. The Association of Executive Recruiting Consultants (AERC, now AESC) was founded in 1959 with seven directors, and J. Francis Canny of Canny Bowen as Chairman. Other early leaders in the AESC came from firms of all sizes, and included Leon Farley of Leon Farley Associates, Fred Wackerle and Clarence McFeeley of McFeeley Wackerle Associates, Paul R. Ray Sr. from Paul R. Ray & Company, and Richard Cronin from Hodge Cronin & Associates. Judith von Seldeneck In the 1960s and for much of the 1970s, the AERC met the needs for a networking forum and peer group, and helped members to define the profession. Roger Kenny recalled, One night we invited Marvin Bower, head of McKinsey, to speak to us, and he got up and said, Stop calling yourselves consultants because you re not consultants. There s enough confusion about consulting as it is! Well, Ward Howell, a big bear of a man, got up and said, Marvin, I beg to differ. We are not only consultants, but we are consultants who have to live with the results of our actions. Roger Stoy In 1982, the organization changed its name to the Association of Executive Search Consultants to better reflect the consulting elements in members work. Those elements include working with clients to analyze the role of the position in the organization, to define position requirements and candidate qualifications, to examine the compensation and likely career path, to explore the culture and the fit of desirable candidates, and to structure the search itself. Anthony Saxton Reflecting the best of the search profession, the association has always attracted excellent members, particularly to the leadership ranks. Russell Reynolds recalled, In 1967, William Clark asked me to serve on the long-range planning committee of the AERC with Spencer Janet Jones-Parker Stuart, Ward Howell, and Gardner Heidrick. I then realized what an outstanding group of people had started the search business. Although in the late 80s some of the larger firms became disenchanted with the AESC, under Janet Jones-Parker as President and Bill Gould as Chairman they returned to the fold, and have continued to provide many of the leaders for the Association to the present day. Jean Van den Eynde 11

12 Jürgen Mulder In recent years, leaders of the AESC have included Tom Hall (Korn/Ferry International), Paul R. Ray, Jr. (Ray & Berndtson), Eric Vautour (Russell Reynolds Associates), Roger Stoy (Heidrick & Struggles), Judith von Seldeneck (Diversified Search Ray & Berndston), Jean Van den Eynde (Russell Reynolds Associates), Charles Wardell (Korn/Ferry International), Vincent Swift (TRANSEARCH International), Anders Borg (Penrhyn International) and Carl Lovas (Ray & Berndtson), all of whom have been instrumental in supporting and leading the development of enhanced programs and services as well as the move to globalizing the AESC. Charles W.B. Wardel III Going Global Kenneth V. Eckhart Sheila McLean From 1959 to 1996 AESC members were primarily firms headquartered in the United States with some international members in Canada and several in Europe. Early international member firms included The Caldwell Partners (Canada), Christopher Mill & Partners (UK), TASA (an international network of search firms), Hansar International (Belgium) and John Peebles Associates (New Zealand). By 1990, the AESC had attracted additional European members such as Saxton Bampfylde (UK), Beigbeder Caude & Partners (France), Berndtson International and Leaders Trust International, some of which were multi-country operations. Vincent Swift Anders H. Borg Because of its large North American membership, for many years the AESC had been essentially a US-run organization. But in 1997, under AESC President Sheila McLean, the association established a European Council comprised of 12 members from among the AESC s established US member firms with European offices, plus leading European firms such as Jürgen Mulder & Associates (Germany) and Eric Salmon and Partners (France). Jürgen Mulder was the first Chair of the European Council and was supported by services from Ernst & Young s Brusselsbased Association Management subsidiary run by Alfons Westgeest. In 2004, AESC opened its own office in Brussels with a full-time European Director, Brigitte Arhold, who reported into AESC s head office in New York and the current AESC President, Peter Felix. 12 W. Carl Lovas Peter Felix Following Jürgen Mulder, other Chairs of the AESC in Europe included Anthony Saxton (The Amrop Hever Group), Didier Vuchot (Korn/Ferry International), Jean Van den Eynde (Russell Reynolds Associates), and Anders Borg (Hansar International/Penrhyn International). Long-serving Council members such as Marc Lamy (Boyden), Ulrich Ackermann (TRANSEARCH International), Jean- Philippe Caude (Leaders Trust), Xavier Alix (Ray & Berndtson), Lucca Pacces (Spencer Stuart), and Serge Lamielle (Neumann International) helped build the

13 foundation for the Council which today numbers some 50 member firms throughout the European region, including the EU countries, Russia, Turkey, and Eastern and Central Europe, and is growing strongly. In 2004, under the leadership of AESC President Peter Felix and Asia/Pacific Chair Ken Eckhart of Spencer Stuart, the AESC achieved the final step in creating a global organization by establishing an Asia/Pacific Council. For the first time the AESC could say that it fully represented the worldwide retained executive search industry. To reflect its global role, in 2004 the AESC adopted a new governance structure whereby the three regional councils each elected five representatives to sit on a newly-constituted International Board of 15. The Board deals with operational matters and strategy in collaboration with the President while the regional councils act as representative bodies and forums for review of issues affecting that region. The Chair, Vice Chair, and Treasurer of the Board rotate annually among the three regional councils. Thus the first non-us Chair was Jean Van den Eynde of Russell Reynolds Associates in Brussels, followed by Vincent Swift of TRANSEARCH International, based in Hong Kong, and Anders Borg of Penrhyn International in Brussels. Collectively, these steps reoriented the AESC from being largely dominated by its US members to being truly global, and provided a more realistic governance framework for an association representing a global industry. Since these changes, the genuinely global franchise of the AESC has experienced substantial growth of its branding, programs, member participation, and overall significance as a professional body. Today, AESC members have offices in over 70 countries. Members may belong to a single region or may be global members with offices in all three regions. The AESC hosts meetings and events in cities throughout the world and provides programs and services globally. Although the organization has physical offices only in New York and Brussels, technology has enabled the AESC to operate globally by means of training via the Internet and teleconferences with members worldwide. AESC Event, London, 2008 First AESC Asia Pacific Council, 2004 AESC Event, Mumbai, 2007 AESC Conference, New York City,

14 Ongoing Outreach CorporateConnect is a free service for senior HR and line managers offering access to search industry news, research and reports; executive recruitment training; the online AESC membership directory; and AESC events. BlueSteps, run by the AESC, is the premier career management service for senior level executives, offering visibility to leading executive search firms worldwide. For AESC members, BlueSteps provides a free and exclusive database of 50,000 potential candidates across all industries, functions and regions. Although one of the major functions of the AESC has always been to represent search firms to the business public and media, in recent years the association s efforts have expanded to constituencies beyond member firms including both Hiring Organizations (Clients) and Candidates. Thus the AESC s web-based service CorporateConnect acts as a portal for clients to gather information and access services about retained executive search such as the Client s Bill of Rights and the Client Charter, both of which serve to educate Clients about the best way to obtain value from executive search. For Candidates, there is a Candidate s Bill of Rights and the highly successful internet-based BlueSteps career management service, which provides access for executives to AESC member search consultants through its global database. Since the database is free and exclusively accessible by AESC members, the service benefits both sides. Approximately 50,000 potential candidates from around the world are now members of BlueSteps. Other initiatives include programs such as online training and certification for search professionals via AESC Campus, and View from the Top, a series of audio seminars on executive search and human resource management topics. AESC Campus offers a range of training courses, forums and programs on key parts of the executive search process for researchers, associates and consultants. The AESC Researcher/Associate Certification encompasses a focused training regime that allows researchers and associates to gain industry accreditation and recognition of their skills. Starting life as a small association for the profession, the AESC has grown over the past 10 years to a staff of 25 with two offices and revenues of almost $5 million. As Peter Felix said: The AESC today is a modern, multi-service organization that can more effectively represent an important and high-level professional service industry to clients, candidates, and the larger public. As a platform, peer group, and guide to an industry challenged by proliferating technology, emerging markets, and evolving practice standards, there is still much to be done but exciting opportunities lie ahead. Future Forecast: Growth Amid the Storms View from the Top, a series of audio forums led by industry experts, academics, and consultants, offers high level discussion on topics impacting top management recruitment, leadership, and talent management. Executive search consultants interviewed and surveyed for this article see a bright, long-term future for the industry. The challenging business environment, high executive turnover, changing demographics, and increasing complexity and greater due diligence requirements of executive and board recruitment should translate into steady demand. 14

15 Yet despite or perhaps because of a robust market, search consultants see challenges ahead, chiefly in three areas: Technological change: To borrow a phrase from Mark Twain, reports of the death of executive search at the hands of the Internet have been exaggerated. True, data on candidates has become commoditized. But that hardly means that search will follow suit; indeed, as a consulting discipline, search cannot be commoditized. Defining position requirements and candidate qualifications not to mention sourcing, screening, interviewing, prepping, selecting, and persuading require as much art as science, and more social savvy than memory. As Janet Jones -Parker, a former AESC President, stated, High-tech presents no threat to high-touch executive search. Client demands: Not all potential clients grasp the value proposition and consulting component of retained executive search. The only antidotes are client education coupled with consistently outstanding client service. By definition, executive search consulting requires the services of a retained executive search consultant. Contingency and even so-called retingency or container arrangements can erode the consulting element of search and reduce it to a different service. While Internet-enhanced recruiters and some employment agencies may try to repackage themselves as search firms, they are in a different business. Search industry services: While retained executive search firms see their core service as fruitful for decades to come, some have considered services that extend the value of their expertise and skills. Options include more sophisticated evaluation tools, perhaps extending to predictive analysis of performance, and more involvement in on-boarding newly-hired executives. Other potential enhancements include succession planning, due diligence, and even acting more as agents or career managers for executives, although this latter, long-discussed tactic has seen limited adoption. The debate about service expansion continues, although many practitioners see sticking to their knitting as the best way to continue growing. On balance, the future of retained executive search consulting and of the AESC appears solid. The industry has weathered numerous economic downturns and has accommodated, and even profited from corporate strategies ranging from conglomeration in the 1960s to leveraged buyouts in the 1980s to outsourcing in the 2000s, as well as technological developments that include the Internet and social networking and the information access that it offers to all. AESC Regional Directors (from Left to Right): Nancy DeKoven (Americas), Christophe de Callatay (Europe), Christine Hayward (Asia Pacific), 2008 Retained executive search consulting will continue to prosper as profit and nonprofit organizations around the world, in their pursuit of success, face the need to locate, attract, and hire the best available people for leadership positions. AESC Board Members (from Left to Right): Carl Lovas, Vincent Swift, Joanna Miller, Peter Felix, Anders Borg,

16 AESC Board and Council Chairs Francis Canny AESC Board Chair William Clark AESC Board Chair Hardy Jones AESC Board Chair Donald Wright AESC Board Chair Gardner W. Heidrick AESC Board Chair Ward Howell AESC Board Chair Rawle Deland AESC Board Chair Donald DeVoto AESC Board Chair Franklin Beardsley AESC Board Chair Gerard R. Roche AESC Board Chair George Craighead AESC Board Chair Robert Martin AESC Board Chair Max M. Ulrich AESC Board Chair Clarence McFeely AESC Board Chair John Richmond AESC Board Chair Leon A. Farley AESC Board Chair William E. Gould AESC Board Chair Alden S. Blodget AESC Board Chair Robert Montgomery AESC Board Chair Robert L. Smith AESC Board Chair John H. Callen, Jr. AESC Board Chair Thomas H. Hall, III AESC Board Chair Paul R. Ray, Jr. AESC Board Chair Jürgen Mulder Europe Council Chair John Lloyd AESC Board Chair Eric Vautour AESC Board Chair Anthony Saxton Europe Council Chair Roger Stoy AESC Board Chair Didier Vuchot Europe Council Chair Kenneth V. Eckhart Asia Pacific Council Chair Judith von Seldeneck AESC Board Chair Judith von Seldeneck Americas Council Chair Jean Van den Eynde Europe Council Chair Jean Van den Eynde AESC Board Chair Vincent Swift Asia Pacific Council Chair Charles Wardell, III Americas Council Chair Charles Wardell, III AESC Board Chair Anders H. Borg Europe Council Chair Vincent Swift AESC Board Chair W. Carl Lovas Americas Council Chair Anders H. Borg AESC Board Chair

17 Members of the AESC 3P Consultants Pvt. Ltd./Penrhyn International Academic Search International Accord Group ECE Acteurop/The Amrop Hever Group Advantage Executive Recruitment Advantage Partners Allen Austin Executive Search/TRANSEARCH International The Amrop Hever Group Anderson & Associates Anderson Hodges ASA Executive Search/The Amrop Hever Group The Asia Partnership Aretes Consultants/Penrhyn International Atkinson Stuart Avery James, Inc. Battalia Winston International/The Amrop Hever Group Blair & Company The Bedford Consulting Group Inc./TRANSEARCH International Bialecki Inc. Bishop Partners, Ltd. BJW Executive Search Board Consultants International (Germany) Boardroom Consultants/Slayton Search Partners BoardWalk Consulting Borderless Executive Search Boyden Global Executive Search Brain TRANSEARCH BridgeSpan Executive Search Brigham Hill Consultancy Buffkin & Associates, LLC. The Caldwell Partners Capstone Partnership CareerSmith Carrington & Carrington, Ltd. Causa Consulting Ccentric Group Chadick Ellig CHM Partners International, LLC/The Conscientia Group Coleman Lew Associates, Inc. Columbia Consulting Group, Inc. Comella Consulting Group Compass Group, Ltd. Conscientia Group Conteven C.A. Conway & Greenwood Cordiner King/The Amrop Hever Group Crease Consultores Cromwell Partners/TRANSEARCH International Crown & Marks/Signium International Crowe-Innes & Associates CTPartners Curran Partners, Inc. The Curzon Partnership, LLP. D & G/The Amrop Hever Group D.A. Kreuter Associates, Inc. (DAK Associates) D.P. Parker and Associates, Inc. DS & Associates Daubenspeck and Associates, Ltd. Davenport Major Executive Search Day & Associates/The Conscientia Group de Jager & Associates Delectus/Amrop-Hever AB DELTA Management Consultants GmbH/The Amrop Hever Group Dennis P.O Toole & Associates, Inc. The Desir Group Development Resources, Inc. The Dingman Company, Inc./The Amrop Hever Group The Diversified Search Companies/Ray & Berndtson Dobroy International Dowd Associates Dr. Besmer Consulting/The Amrop Hever Group Dr. Bjorn Johansson Associates Dr. Kaufmann & Partner/The Amrop Hever Group Echelon, S.A. de C.V./The Amrop Hever Group Ecker & Partner Eileen Finn & Associates Engels & Harzheim/Signium International Equinox Partners Eric Salmon & Partners Epsen Fuller EuroGalenus/Penrhyn International Euromedica Eurosearch & Associés Executive Consultants International Executive Search Baltics OÜ/The Amrop Hever Group Executive Search Baltics SIA/The Amrop Hever Group The Executive Edge/The Amrop Hever Group Executive Search International Limited The Executive Source (Canada) The Executive Source (United States) Exceller Coach Trainers Fagerström, Heikel & Nuutinenn Oy Ab Ferneborg & Associates, Inc./The Conscientia Group FESA Global Recruiters Fish & Nankivell Ogilvie Watson/Penrhyn International Foster Partners/Penrhyn International Francis & Associates Garner International Gattie Tan Soo Jin Pte. Ltd./The Amrop Hever Group Global Sage Godliman Gow & Partners US Grace Company Executive Search Groupe Hébert Halbrecht Lieberman Associates, Inc. Halsey Consulting/TRANSEARCH International Hampton Consulting Hansar International/Penrhyn International Heidrick & Struggles Herbert Mines Associates, Inc. Higdon Partners, LLC. Highfield Human Solutions HNCL Search Hodge Partners Hoechsmann & Company The Holman Group, Inc. HR Exsel Ltd./The Amrop Hever Group HRD Consultants, Inc. Hunt Howe Partners, LLC. HVS Executive Search IdealWave Solutions The Insight Group Integer Ray & Berndtson Invesco TRANSEARCH J.B. Homer Associates, Inc. J.B.K. Associates J. Robert Scott 17

18 18 Jay Gaines & Company, Inc. Janet Wright Associates Jean-Michel Beigbeder & Partners/CEO Search Jenewein & Partner/The Amrop Hever Group John Peebles Associates, Ltd. Johnson Executive Search Jomon Associates/The Amrop Hever Group Kaluzynski & Madeja Executive Search Kaplan & Associates KBS Associates Ltd./The Amrop Hever Group Kenniff & Racine/The Conscientia Group Kerridge & Partners Kincannon & Reed Knightsbridge Executive Search/The Amrop Hever Group Kohlmann & Young Management Consulting/The Amrop Hever Group Korn/Ferry International KPMG Executive Search (Australia) Lachner Aden Beyer & Company/Penrhyn International LAN Partners sp. z.o.o. Lancor Group Landelahni/The Amrop Hever Group Lang & Associés/The Amrop Hever Group Leadership Development Solutions Leaders Trust International (France, Spain, The Netherlands) Legacy Executive Search Partners Inc. Lovett & Lovett Inc. M&H Search Partners, Inc. Maes & Lunau Executive Search/Penrhyn International Magellan International L.P. Malcolm Preston & Huggins Search Partners Marlborough Aviation Executive Search Martin H. Bauman Associates, LLC. Martin Partners, LLC. Maxwell Drummond International The McAulay Firm/The Conscientia Group McEvoy Associates, Ltd./ Signium International The McIntyre Company/Penrhyn International McKinney Consulting Mellaart International Mercier & Partners/Exec Avenue MERC Partners Meridian Michael Hunter & Associates Michel Pauzé & Associés/TRANSEARCH International Millbrook Partners Mindoor Executive Search Moloney Search Morgan Samuels Moyer, Sherwood Associates MP Sampaio Consultores/Penrhyn International MSA Executive Search MV Amrop/The Amrop Hever Group Nedelcu & Company/Leading Edge Executives Neumann International Neusearch Norman Broadbent The Onstott Group, Inc. Odgers Ray & Berndtson The Onstott Group, Inc. ORBIS Executive Search Inc. /TRANSEARCH International Osprey Clarke/Penrhyn International Panelli Motta Cabrera & Associados/The Amrop Hever Group Parker Executive Search Penrhyn International People In Health (France) The Perrett Laver Partnership Piedmont Ltd. Pinton Forrest & Madden/The Conscientia Group Preng & Associates, Inc. Profile Ray & Berndtson Proposte/Penrhyn International ProSearch The Prout Group, Inc. PT Profesindo/The Amrop Hever Group Pynes & Moerner Raines International Rasd Ltd./The Amrop Hever Group Ray & Berndtson Reeder & Associates Ltd. Referal Partners International Ropes Associates, Inc. Roson de Beas Global Search Roy C. Hitchman AG/Penrhyn International RT&A/ The Amrop Hever Group Rurak & Associates, Inc. Rusher, Loscavio & LoPresto Russell Reynolds Associates, Inc. RZL Y Asociados Del Norte Salveson Stetson Group, Inc. Saxton Bamphylde Hever/The Conscientia Group Scandinavian Search & Selection Search & Coach Search International SeBA International, LLC Seeliger y Conde/The Amrop Hever Group Seminarium/Penrhyn International Shimamoto Partners/Penrhyn International Siebenlist, Grey & Partner Signium International SIMS Singer & Hamilton Executive Search SIRCA Skott Edwards Consultants/Penrhyn International Slayton Search Partners Smith & Syberg, Inc. Snowdon Tate/TRANSEARCH International Sockwell Partners/TRANSEARCH International SPECTRAsearch AG/The Amrop Hever Group Spencer Stuart Stanton Chase International Stein & Partner Management Consulting/The Amrop Hever Group Stephen Raby Associates/TRANSEARCH International Susan Goldberg Executive Search Consulting Taylor & Company Taylor Winfield/Penrhyn International Thacher Executive Search TKJ Associates Top Management TRANSEARCH International Tyler and Company/Signium International Unico Search/TRANSEARCH International The Verriez Group, Inc. Voyer International/Penrhyn International Watermark Search International/TRANSEARCH International WTW Associates Wyatt & Jaffe Zavala Gortari Asociados (as of February 2009)

19 ethical professional consulting

20 Association of Executive Search Consultants 12 East 41st Street New York, New York Rue Washington 40 Box Brussels, Belgium