Amid Recent Growth Caldwell Posts 5.6 Percent Revenue Gain

January 11, 2019 –

Toronto-based executive search firm Caldwell has posted first quarter revenues of $15.9 million (all dollar figures Canadian), up 5.6 percent from a year ago when the firm recorded revenues of $15.05 million.

Net earnings before tax were $388,000 ($0.10 per share, compared to net income was $410,000 ($0.20 per share) in the comparable period a year earlier.

“Though we delivered an increase in revenue over last year, we did experience developing headwinds against recent growth trends,” said John Wallace, CEO. “There was a softening to our overall search market in the latter part of the first quarter and early into the second quarter, as economic uncertainty in the U.S. and U.K. gave pause to many of our clients. While a number of our clients have expressed optimism that search roles will ultimately be filled, we are uncertain at this juncture as to timing,” he said.

Growth remains the priority for Caldwell, he noted, “at a measured pace that will not impede the long-term profitability and financial stability of the firm,” he said. “We are focused on making targeted partner hires and further building our practice and functional offerings across the U.S., Canada and Europe.”

“Additionally, we continue to make prudent expansions to our service lines,” Mr. Wallace continued. “We recently launched Agile Talent solutions that leverage our executive search network to provide talent and knowledge services to our clients when full time hires are not required. Our teams place executives who are experts in the fields of cybersecurity, blockchain, and diversity and inclusion in ongoing advisory capacities to aid clients in a variety of critical strategic and operational areas.”

Just this week the search firm launched Caldwell Advance, a mid-management search offering that directly responds to expressed client interest in the Caldwell search process at the emerging leader and advancing professional level. “These service extensions will provide immediate meaningful differentiation and added value to our clients,” said Mr. Wallace.

Recent Growth

Aside from a one quarter pause, Caldwell has been busy with new launches. Just last month, the firm launched a diversity and inclusion advisory council service for clients. The offering is designed to provide strategic insight, external accountability and guidance in developing diversity and inclusion strategy and programs, and help align goals, people and processes. “Countless studies and statistics have been published showing the positive impact that diversity, inclusion and equality in the workplace have with respect to performance, creativity and innovation, and superior financial results,” said Chris Beck, chief operating officer of Caldwell. “Yet, even in this age of increased awareness, not all companies know how to approach diversity and inclusion programs effectively. There is also a shortage of executives with real-world experience leading initiatives in this rapidly-evolving space, making it easy to see why so many companies are seeking strategic support on their D&I programs.”

Big Growth in Store as Executive Recruiters Slowly Adapt to Automated Technologies
The executive search industry’s leading 50 players in the Americas once again surpassed $3 billion in revenues last year, according to industry newsletter ESR, in a market intelligence briefing just released by Hunt Scanlon Media.

The offering is part of the firm’s strategic initiative to position clients ahead of critical emerging technologies and trends. “Caldwell fully understands the transformative power of great talent and its ability to turn potential into success,” said Mr. Beck. “To meet the growing need for experience and advice, we have created Caldwell Advisory Councils, a solution that partners exceptional advisors from our broad network of executives and experts with client companies looking for strategic and tactical support on an as-needed basis.”

This past fall, Caldwell also strengthened its recruiting capabilities in the aviation, transportation and hospitality space with the addition of Frank Morogiello as a partner in the firm’s industrial practice. Mr. Morogiello, is located in Dallas and head the firm’s aviation and hospitality practices, joined industrial practice leader Dave Winston, technology practice leader Jim Bethmann and industrial partner Tim Bostick. Previously, Mr. Morogiello was a partner and head of the U.S. aviation & hospitality practice focusing on aerospace and defense at Odgers Berndtson.

New Offerings

Caldwell also launched a blockchain advisory council in late 2018 aimed at driving the understanding, integration and implementation of blockchain technologies. The new offering for clients is in partnership with blockchain consulting firm, BTblock. The council, part of Caldwell’s broader Agile Talent Solutions platform, provides clients with the opportunity to gain deeper knowledge on the world of blockchain disruption and its portents, and potentially put this knowledge into action, said the firm.

“Blockchain technologies carry the potential for substantial impact within our client’s organizations, as they can enable the strategic reorganization of workflows and related structures,” said Chris Beck, chief operating officer of Caldwell. “Businesses in every area of the economy are rethinking how best to use talent and leverage it in different ways. With the launch of the Blockchain Advisory Council, we are the premier executive search partner for clients as they train and position the key executives who will lead their adoption of blockchain technologies.”

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media

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