April 8, 2019 – Toronto-based executive search firm Caldwell has posted second quarter revenues of $15.3 million (all dollar figures in Canadian), a two percent increase from a year ago when the firm recorded revenues of $14.9 million.
“The developing headwinds we experienced at the end of our first quarter continued into the beginning of our second quarter, as economic uncertainty and equity market volatility caused pause and hiring delays among our clients,” said John Wallace, chief executive officer. “We have since seen a significant strengthening of new search engagements in the latter part of the second quarter, continuing to date in the third quarter.”
“We remain focused on making strategic additions to our partner team in the geographies and industries that most strongly enhance our ability to serve our clients,” Mr. Wallace said. “The addition of Andrew Willson (London) and Jeremy Zeman (Chicago) added significant depth to our industrial and financial services capabilities, while further strengthening our London team and establishing our presence in Chicago.”
Caldwell’s most recent strategic affiliation with leading Sydney-based board and C-suite executive search firm Hattonneale was another major step forward for Caldwell, as the firm continues to build out its footprint and client capabilities in Asia Pacific.
“Along with partner hires, we continue to prudently expand our service lines in areas that can leverage the existing expertise of our search teams,” Mr. Wallace said. “We recently announced that we are now the largest licensed certified partner of the Predictive Index (PI), allowing us to integrate their suite of talent strategy and assessment tools with our search process, as well as sell and service the PI platform directly to our clients for their enterprise-wide use.”
This, in addition to Caldwell’s first-quarter launches of Agile Talent’s Diversity & Inclusion solution and Caldwell Advance, the firm’s mid-level search offering for emerging leaders and advancing professionals, will permit Caldwell to have an increasingly meaningful impact on its clients’ overall talent strategy, said Mr. Wallace.
During the quarter, Caldwell’s 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 April 12, and to be paid on June 10.
Caldwell’s shares were up 1.57 percent upon release of its second quarter results. The firm had a market cap of $25.9 million, according to FT.com.
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.
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“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