November 15, 2018 – Toronto-based executive search firm Caldwell has posted third quarter revenues of $18.7 million (all dollar figures Canadian), an 18.9 percent increase from a year ago when the firm recorded revenues of $15.8 million.
Full year revenues rose by 15.7 percent, from $57.8 million last year to $66.5 million.
Fourth quarter professional fees in the U.S. were up 35.7 percent to $14.2 million. Canadian professional fees rose were down 24.5 percent to $3.8 million. Professional fees in Europe were up 254.5 percent to $663,000.
“This was an outstanding year of accomplishment and growth for Caldwell,” said John Wallace, CEO. “We continue to grow our scale and resultant impact in the marketplace. Collaboration among partner teams and geographies has further expanded, and there is now more significant breadth and depth to the expertise we can offer to our clients.”
“Products and services that support our core competency of retained executive search, such as our Agile Talent Solutions, allow us to provide more seamless talent solutions to our clients,” said Mr. Wallace. “As does expanding our partner team in important geographies and industries, as we already have by adding three new partners in the new fiscal year thus far. In all things our primary drive and focus remains on connecting our clients with transformational talent and our shareholders with increasing value.”
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.
During the quarter, the board of directors also declared the payment of a quarterly dividend of 2.25 cents per common share payable to holders of common shares of record on Nov. 26 and to be paid on Dec.14.
Caldwell recently launched a blockchain advisory council aimed at driving the understanding, integration and implementation of blockchain technologies. The 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.”
Caldwell Expands Aviation and Hospitality Capabilities
Caldwell has 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.
In another Agile Talent Solutions service, Caldwell recently launched an offering that pairs clients with agile executive talent on an as-needed basis. The firm describes its new Value Creation Advisory Solutions offering as a unique, flexible and cost-effective approach to creating value and solving core business challenges that require external expertise.
Looking to unlock new value creation opportunities, Caldwell pairs clients with external talent on an as-needed basis. In most cases, said the firm, an advisory solution is a more nimble and cost-effective approach than using an outside consulting firm or traditional operating partner at a private equity firm.
“Even with a highly accomplished leadership team, nearly every company could benefit from an objective, outside viewpoint from time to time,” said Mr. Wallace. “Our Value Creation Advisory Solution was created precisely to provide this unbiased, expert external guidance, and help our clients effectively execute on strategy by providing a mechanism for accountability, in addition to bringing best practices in terms of process and alignment.”
“There is a lot of positive momentum inside our firm right now – our updated brand has been very well received since its debut, and we are excited about the recent expansion of our Agile Talent offering with the launch of our Value Creation Advisory Solution,” Mr. Wallace said. “We have an exceptional team of talented professionals at every level, all working towards a common goal – to provide value to our clients and shareholders – and it shows.”
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