Caldwell Posts Revenue Gain; Elects Private Equity Veteran as Chairman

July 15, 2019 – Toronto-based executive search firm Caldwell has posted third quarter revenues of $19.9 million (Canadian), a 4.6 percent increase from a year ago. The search firm also announced that its chairman, G. Edmund King, is retiring and that new board member and private equity veteran Elias Vamvakas has been elected as chairman.

Caldwell noted that third quarter revenues rose amid a higher average number of partners, 39.3 compared with 38.0 in the year-ago quarter, and an increase in the average fee per assignment.

“New search engagements strengthened significantly in the third quarter, leading to a record-breaking quarter for revenue and a very strong performance with regard to operating profit,” said John Wallace, chief executive officer. “The quarter’s robustness narrowed the operating shortfall from the relative softness we experienced in the first half of the year. Based on our current trends, we do expect to gain additional ground in the fourth quarter.”

“We continue to strengthen our market presence and client capabilities with the addition of high caliber partners in strategic sectors and geographies,” Mr. Wallace said. “The addition of Carlos Cata to our Chicago team is a significant expansion of our recruiting competencies across the marketing and digital transformation space.”

The firm also further expanded its Caldwell Advance team – focused on the recruitment of emerging leaders and advancing professionals – with the addition of talent optimization executive Todd Lingle. “This addition strengthens our ability to connect our clients with transformational talent in a more comprehensive way,” said Mr. Wallace. “We will continue to make strategic additions to our teams where it allows us to deliver long term value to our clients.”

New Look Board

Newly elected Mr. Vamvakas will also serve as a member of the audit committee, investment committee and nominating/corporate governance/compensation committee of the board. He is chairman, CEO and founder of Greybrook Capital, a private equity firm focused on real estate and healthcare. Mr. Vamvakas is also chairman of Greenbrook-TMS NeuroHealth centers and TearLab Corp.

Caldwell also elected John Young to the board, pending the approval of shareholders. Mr. Young is CEO of Boat Rocker Media, a global entertainment company. He is also serves as vice chair on the board of the Academy of Canadian Cinema and Television. He is a member of the boards of Golf Town, Sporting Life and Toys R Us. Mr. Young is also the chairman of the board of Feeding Canadian Kids.

“Elias and John are outstanding additions to our board,” said Mr. Wallace. “We are excited about the unique expertise, depth of leadership and comprehensive business experience they bring, as we continue to evolve and lead the organization forward. We are confident they will provide valuable perspective and insight as we execute our strategy, drive profitability and enhance value for all Caldwell shareholders.”


“The quarter’s robustness narrowed the operating shortfall from the relative softness we experienced in the first half of the year,” said Mr. Wallace. “Based on our current trends, we do expect to gain additional ground in the fourth quarter.”

Recruiting Sector Jumps 13.9 Percent, Driven by Tightening Talent Markets
A constricting labor market with low unemployment means companies are struggling to find qualified talent. When the right people are found, the costs associated with hiring them are rising, making a lengthy onboarding process now the rule, not the exception. 

Shares in Caldwell were up 3.33 percent to $1.24 (Canadian) upon the release of its numbers. The company had a market cap of $24.5 million (Canadian), according to

Recent Growth

Caldwell has been busy with new launches. It recently created 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.

Caldwell also 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.”

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.”

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.

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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