Q1 2013 AESC Executive Search Industry Report Shows Modest Quarterly Growth

North America held the greatest share of regional executive search activity in the first quarter this year with 48.8 per cent of the global market and was the only major region to see its number of new search mandates rise year-on-year, from Q1 2012 to Q1 2013.

The EMEA region saw a four per cent quarter-on-quarter increase in new searches started in Q1 2013, but a 14.1 per cent year-on-year decline (from Q1 2012 to Q1 2013).

Asia Pacific and Central/South America saw a similar trend of quarterly increase – from Q4 2012 to Q1 2013 – yet yearly decline in the number of new searches started.

Download the complete Q1 Executive Search Industry Report >>

About AESC

The Association of Executive Search Consultants is the professional body representing retained executive search consulting firms around the world.

Founded in New York in 1959, the AESC was established to help guide the development and standards of a professional service which was then still relatively new. An offshoot of management

consulting, retained executive search has, over the past 50 years, played a major role in the identification and recruitment of senior executive talent for many different organizations in a wide variety of industries and countries. The success of executive search is such that the profession has grown to become a global industry with revenues in excess of $10 billion.

Since its inception the AESC has itself grown to become a worldwide organization, with an international board of directors representing three regional councils of member firms from The Americas, Europe, the Middle East and Africa, and Asia/Pacific. Its global headquarters is in New York but it also has a regional office in Brussels. To-day the AESC brand name is recognized as the standard bearer for retained executive search and represents member firms in 74 countries around the world, between them employing more than 8,000 search professionals. It is estimated that AESC member firms handle some 70,000 senior executive searches every year.

Download the report to view the 2013 insights into equity ownership and compensation and compare the data to the 2008 report.

download the report >>

About AESC

The Association of Executive Search Consultants is the professional body representing retained executive search consulting firms around the world.

Founded in New York in 1959, the AESC was established to help guide the development and standards of a professional service which was then still relatively new. An offshoot of management

consulting, retained executive search has, over the past 50 years, played a major role in the identification and recruitment of senior executive talent for many different organizations in a wide variety of industries and countries. The success of executive search is such that the profession has grown to become a global industry with revenues in excess of $10 billion.

Since its inception the AESC has itself grown to become a worldwide organization, with an international board of directors representing three regional councils of member firms from The Americas, Europe, the Middle East and Africa, and Asia/Pacific. Its global headquarters is in New York but it also has a regional office in Brussels. To-day the AESC brand name is recognized as the standard bearer for retained executive search and represents member firms in 74 countries around the world, between them employing more than 8,000 search professionals. It is estimated that AESC member firms handle some 70,000 senior executive searches every year.

SPEARHEADS GLOBAL EXECUTIVE STRATEGY SURVEY

BALTIMORE – Stanton Chase International (www.stantonchase.com), a retained executive search firm with 73 offices in 46 countries, has launched its “2013 Global Executive Strategy Survey.” It has been distributed to senior industrial-sector executives and thought leaders throughout the world to highlight and identify trends, challenges, and market issues.

The survey can be accessed through:

https://www.surveymonkey.com/s/77MT3FB

The deadline for participation is June 28, 2013.  The survey data, conclusions and results will be compiled into a white paper that will be sent to all participants.

“Our goal is to compile thoughtful and value-added insights by soliciting responses from leading executives throughout the world,” said Mickey Matthews, Vice Chairman of Practice Groups and Global Industrial Practice Leader for Stanton Chase. “With our global footprint, we will be able to obtain valuable information from professionals on every continent to then allow business executives to make impactful, knowledge based decisions for their organizations.”

“Our global economy requires all of us to be aware of trends in other countries and cultures so that we can respond and adapt to this rapidly changing sector,” said Matthews. “We are confident that this survey will provide valuable content that will aid leaders in making thoughtful and strategic decisions while concurrently being a catalyst for further discussion.”

Aerospace & defense, automotive, chemical, engineering, construction, industrial components & equipment, mining, oil and gas, and pulp, paper & packaging are among the targeted sectors.

“Our aim is to offer seamless executive search services to premier financial institutions across Singapore and Greater China,” says Edwin Yeo, Managing Director of Stanton Chase International Singapore, “which, most importantly, benefit our clients with the right expertise in addressing their pressing talent acquisition challenges”, he adds.

Ivo Hahn, CEO Greater China concludes, “the key financial hubs in our region are already interlinked, and highly complementary in nature. Managing the FSI sector from one hub allows us to leverage on our expertise, facilitate cross-border market access and penetration into Mainland China, which adds tangible value to our clients in Singapore, Hong Kong and the Mainland.”

“I am delighted that Wayne Mason, who has been promoted to Managing Director FSI Greater China & Singapore, has meanwhile accepted this new challenge and will spearhead our landmark initiative. I have no doubt that Wayne, supported by his highly capable team in Hong Kong and Singapore, will succeed in this important mission by setting supreme client satisfaction standards.”

Mason Wayne – Managing Director FSI Greater China & Singapore, Stanton Chase International

About Stanton Chase International
Stanton Chase is ranked within the global Top 10 global retained executive search firms. Mediazone ranks Stanton Chase amongst Hong Kong’s Most Valuable Companies and Asia-Pac Victory places Stanton Chase as #1. With proven expertise in key sectors of the global economy, Stanton Chase has 9 international Specialist Practice Groups that operate as international teams. Stanton Chase is owned by its partners who take individual responsibility for delivering outstanding quality for each assignment. Stanton Chase is a member of the Association of Executive Search Consultants www.aesc.org. For all information about us, please visit www.stantonchase.com.

“Ten years ago, foreign companies were seeking Turkish executives, while the Turkish companies were looking for foreign directors,” George Cross, International chairman of Stanton Chase London told Daily News in a written interview. “Today Turkish companies want to utilize Turkish professionals with global expertise.”

He said the bilateral attraction stemmed from the fact that “the rapidly growing economy raises big demand for stronger executives.”

Likening the trend to the Indian case, Cross said talented native professionals came back to their homeland or never thought to leave for career opportunities abroad.

Speaking about women’s representation in Turkish management boards and business in general, he said he thinks nobody can “prevent a woman from achieving and having a better career.”

“In certain parts of the word where diversity on Boards is very important, if there are two equal finalist candidates, the company may well choose the diverse candidate” he said.

George Cross, International chairman of Stanton Chase London

The aim of this research is to examine the tenure of CEOs in Finnish listed companies during the period 1990-2011. There were 38 companies, which were listed in the Helsinki Stock Exchange during the entire period. The CEOs’ tenures, personnel, turnover, end EBIT figures were analysed for this research in order to find out if we can make difference from the CEO tenure and companies’ financial performance.

Click here to read in full

One such survey was carried out in October 2012 in Poland. Almost 1,000 top executives took part in the survey. The survey was carried out in Polish and was the first such survey carried out by the Stanton Chase Warsaw office. We are pleased with the high response rate and delighted to share the results.

The results closely correlate with the insights gained by Stanton Chase executive search consultants and specialists in their day to day contacts with the leading executives in Poland.

This survey consisted of 23 multiple choice questions in three different categories. Respondents were asked to give their opinions on:

• the current economic situation and outlook
• personal career drivers
• whether top Polish managers of today are Euro class.

The respondents were also representative of the key business industry sectors including Consumer Products and Services, Technology, Industrial, Life Sciences and Healthcare, Logistics and Transportation, Natural Resources and Energy, Financial Services, Professional Services, Government, Education and Non Profit.

Click here to read in full

This sentiment is particularly appropriate for the oil and gas industry which today is facing a significant talent and knowledge gap that actually began in the 1980s resulting in many potential engineers and geophysicists looking elsewhere for careers. The ones who remained are spread throughout the world and are in high demand as the oil and gas sector rebounds at an astounding rate. As you recall, the price of a barrel went from $35 to $10 in the 1980s, resulting in massive layoffs throughout all segments of the energy industry.  It resulted in one of the largest downsizings of a highly capitalized, labor intensive industry ever known.  Once concentrated in western countries, the talent has now been spread thin as major companies throughout the world are competing for talent that can deliver oil and gas products.

China, for example, has oil and gas interests in Kazakhstan, Iran, Iraq, the Sudan, Venezuela, Peru, and Azerbaijan. It clearly illustrates how committed China is in developing an energy pipeline that will feed the growth of its economy.

Like the “Law of Raspberry Jam”, the talent is out there but it is spread thin throughout the world, among countries which view oil and gas as the next gold rush that will lead them to prosperity and a position of leadership in a world in desperate need of energy.

So, what happened to the talent pool?

It actually began shrinking in the 1980s when roughly 25 percent of engineers and geologists left the industry.  At the same time in the 80’s, college enrollment for petroleum engineer and geology students dropped significantly, thereby starting a “perfect storm” that has resulted in the talent gap of today. During that decade, oil reserves were hard to find, there was the initial talk of our planet running out of oil, and the notion of a world relying on alternative sources of power. The trend is likely to continue, according to one study indicating that approximately 22,000 engineers and geoscientists will retire the industry by 2015.

The components of this perfect storm include:

• Colleges saw a decrease in those pursuing these degrees
• As exploration techniques became more sophisticated, there is a recognition that oil and gas is plentiful
• There has been a proliferation of national oil companies (NOCs) throughout the Middle East and Africa, increasing the demand and competition for qualified energy professionals.
• There has been a proliferation of independent oil and gas companies that also are expanding from their traditional regional operations into international exploration efforts
• China and India are desperately seeking out reserves for huge populations that have become increasingly consumer-based, requiring more and more energy

It is compounded by the retirement of Baby Boomers (born between 1954-64) from C-level positions, resulting in a glaring absence of talent available to move into these vacant and projected positions of leadership. In the oil and gas industry, it is known as the “Great Crew Change.” Statistically, there are few 40-50 year olds capable of running these companies. And while universities are pumping out engineers and geologists, it will be decades before they are ready to run these companies.

The scenario is really very similar to the technology boom in the 1990s which resulted in companies aggressively identifying, recruiting, and ultimately compensating these individuals. The executive talent, albeit scarce, is available. It’s just a matter of locating, enticing, and securing these individuals.

And, there is a growing awareness in the industry that these companies have a responsibility to run environmentally safe and efficient operations. The recent Deepwater Horizon disaster was in part due to people who had years of experience in the industry, but were new to their positions on this ship.

So, it’s not all gloom and doom but today’s companies must develop a strategy that reaches out across borders while also grooming and retaining younger executives who can move into leadership positions in 15-20 years.

One of the first steps is to fill this gap for the near-term future. The bad news is that the investment portfolios of the recently retired C-level executives took a hit. But, the good news is that the investment portfolios of the recently retired C-level executives took a hit.

From a personal level, it’s not a good scenario but from an industry perspective it comes at a good time. These former hi-level executives are going back to work as high-priced consultants. They are supplementing in-house teams and mentoring the younger stars being groomed for future leadership positions.

This is a temporary and willing workforce, so oil and gas companies of  all sizes must develop a strategy for bringing these valuable resources into the fold. They must:

• Locate these individuals
• Develop an attractive package that will give these retirees flexibility along with appropriate compensation
• Allow flex time, involving activity on-site and from home

Another source of talent comes from the military. Many officers are leaving the armed forces due to the withdrawals from Iraq and Afghanistan. These trained leaders can be attractive to oil and gas companies. For example:

• Many military specialties are transferable such as accounting/administrative, mechanics, technicians, quality assurance/quality control, etc.
• Veterans with direct, prior petro-experience and/or education
• Drilling rig or rig service jobs

These veterans also have quality leadership skills which transfer directly to managing large groups of people on drilling sites or at corporate headquarters.

Another source of talent is among expats who migrated from the United States to NOCs in Saudi Arabia, Ghana, and Nigeria. Others are with firms in China, South America, the United Kingdom, and India. The one common denominator is that they are all seeking assets and reserves as a road to profitability and energy self-sufficiency. There is significant cross-border activity and the demand for this talent is global.

The stakes are clearly high as new methods of exploration have identified  reserves offshore and throughout the world. Talent has always come at a high price and today’s oil and gas companies must be willing to develop strategies to identify talent for the short term and cultivate executives for the future.

RICK DAVIS | Stanton Chase International Executive Search

Global Practice Leader, Natural Resources & Energy

Davis-StantoChaseRick Davis is the Global Practice Leader for Stanton Chase International Executive Search Natural Resource and Energy practice. He is a Director of the firm’s Dallas office and has more than 25 years of senior level executive search experience within the oil and gas industry and related financial services sectors. Stanton Chase is a global retained executive search firm with 72 offices in 46 countries.

In a recent ceremony with the presence of more than  100 top HR professionals, Carlos received the award. The jury justified their choice based on his contribution to the growth of Stanton Chase Portugal in the areas of Executive Search, Talent Management and Executive Coaching and also on his commitment in civic projects and in the promotion of Human Capital Management in Portugal.

Carlos Sezões, 37, partner at Stanton Chase since May 2010, has been working for over a decade in the areas of Human Resources consultancy, particularly in projects of Executive Search, Talent Management, Executive Coaching and Employer Branding.

All CFOs are actors and sales people.  Just ask any one of them.  They have many faces and roles they play internally and externally to their organizations.  Some roles are consistent over time.  Others are new and evolving.  Additionally, role priority changes over time to accommodate an ever-fluctuating economic climate, shifts in leadership, consumer behavior, product line maturity, or team personnel, among other factors.  Today, we see eight recurring themes, or roles, that CFOs are required to play due to the current mix of trends in the United States:

1. The Quarterback:    “You’ll have more duties this year…” so it is important to be able to take charge, call the shots, delegate effectively, recruit the best team, and communicate continually.  The CFOs of today are asked to be team leaders, with responsibility for throwing the winning plays without letting the weight of that duty bring them to their knees.  CEOs are more demanding, as they have more demands placed on them.  It’s not just more work…it is effectively meeting the needs of the CEO, the Board of Directors, investors, lenders, society, government, and the general public.

2. The Magician:    “Revenue is down…but Profits must go UP!” How many times have CFOs felt the pressure to magically make money appear? CFOs see the practicality of the numbers and are expected to wave their magic wand and fill expectations for profits, EBITDA, and EPS.

3. The Diplomat:    “Every department head wants their full budget.”  Each budget stakeholder wants something: from the VP with who wants a fully funded budget; the shareholder who wants attractive stock price and dividends; the employee who wants incentives and benefits; the customer who wants price, value, and quality; and the boss who wants performance, promotions, and bonuses.  How do CFOs juggle all of these competing wants/needs while maintaining personal integrity, organizational values, and a positive work environment?  Here is where the diplomat CFO must intercede and balance the happiness of all.

4. The Financier:    “Show me the money!” Despite all the market place challenges, lenders have been tightening up credit requirements, making cash flow harder to find.  Vendors and customers alike are tighter on cash flow.  On top of everything else, the CFO must ensure their organization’s own adequate cash flow.

5. The Ethics Officer:    “Moral Compass, Culture Cop, Values Guru.” The ethics officer is responsible for upholding the morals and values of the company.  Frequently this role today falls on the shoulders of the CFO, or at least the CEO with support from the CFO.

6. The Politician:    “The CFO speaks for the whole company.”  Not only must the CFO juggle the internal needs of their organization, they must now be politicians and serve as spokesperson to the world at large, a role for which many CFOs have not been adequately trained.  M&A activity, financing deals, disasters, bankruptcies, executive hires, succession planning, SEC-mandated announcements, and yet-to-be-named circumstances throw CFOs into the limelight.  CEOs and Boards want CFOs who can be effective in this role when circumstances demand their participation on the public scene.

7. The Multi-linguist:    “Staffing, Financing, Off-shoring…” The CFO of today must be versed in Global languages and cultures to effectively handle the new realities of a global business community.  Whether opening operations over-seas, in Latin America, or Quebec, or hiring candidates with multi-national experience, or floating debt in a foreign market, CFOs are asked to be aware and functional in multiple languages and customs.

8. The Athlete:   “Track shoes on!” It’s a competitive market out there, and CFOs today must be able to run the distance and come out ahead.  Whether competing for their own jobs or helping their companies to compete CFOs have more competition for scarcer resources today.  Generational, global, political, and economic trends are all aligning to create a more competitive business environment than ever before.  CFOs need to do whatever it takes to stay mentally, physically, and emotionally fit.

The CFO must effectively play more roles today and be constantly vigilant for what changes are coming, and be able to measure their own performance.  CFOs need to be self-aware, set priorities, and know which roles to play at any one time.  Which roles do you play best?  Worst?  How can you increase your strengths while mitigating your weaknesses?  How can you expand your repertoire of CFO skills?

These trends in CFO roles reward professionals who today have strong technical and social education, training, and competencies.  Contact me for more information on how successful CFOs today build those skills.  Meanwhile, best wishes for continued success in your CFO career!

Paul Herrerias, CPA, MS-HR
Managing Director- San Francisco
STANTON CHASE INTERNATIONAL
P.Herrerias@stantonchase.com