Loading...
PROPOSAL FOR RECRUITMENT FOR CITY MANAGER (RFP 45-97) I I I I I I I I I I I I I I I I I I I THE CURTISS GROUP PROPOSAL for RECRUITMENT FOR CITY MANAGER THE CITY OF CLEARWATER (RFP 45-97) 550 North Reo Street, Suite 300 · Tampa, Florida 33609 · (813) 287-5049 I I Company name: The Curtiss Group International I Company address: (Headquarters) 301 Yamato Road, Suite 2112 Boca Raton, FL 33431 I (Tampa Bay Regional Office) 550 N. Reo Street, Suite 300 Tampa, FL 33609 I Primary contact: John Farrell Managing Partner - Tampa Bay Region I Phone number: (813) 287-5049 Fax number: (813) 287-5111 I Year company established: 1980 I Other company locations: Ft. Lauderdale, FL Jacksonville, FL Orlando, FL New York, NY Sao Paulo, Brazil I The firm's focus and primary function: I The Curtiss Group, Inc. was founded in 1980 with the dear objective of providing executive search services of the highest possible quality. Since that time, we have established an outstanding reputation for integrity, for intensity of effort, and for an unyielding determination to do the best possible job for our clients. I Our commitments are simple. They remain unchanged and will continue. I To provide executive search services of the highest quality to our clients, and to complete each assignment successfully no matter how much time and effort are required; I To build relationships with our clients by earning their trust and keeping it; I To retain our outstanding professionals, hire new ones of the same caliber as needed by our clients, and add value to the services they provide by emphasizing teamwork and synergy. I The Curtiss Group, Inc. provides classic executive search consulting services -- retainer-based only -- to its client corporations and organizations. Please note that we do not participate in contingency recruiting or provide placement services to those seeking employment. I Executive Search Information Executive search assignments by compensation level: I $50,000 - $75,000 $75,001 - $100,000 $100,001 - $150,000 above $150,000 2% 35~;) 35% 28% I I I I Number of City Manager searches done in past five years: One - (Vero Beach, Florida) I Number of City Manager searches for cities of 100,000 or more population: I None Client references: I Mr. James Huff Director, Human Resources City of Vero Beach (813) 567-5151 ext. 210 Mr. Brad Merriman Director Employee Relations & Personnel Florida Board of County Commissioners (407) 233-4606 I I Mr. Frank Shaw, Jr. Chairman, Search Committee, Board of Directors St. Joe Paper Corporation (904) 386-1120 Mr. Tom Bailey Vice President Director Employee Relations ITI Corporation (904) 445-2622 I I Mr. Walter Revell Board of Directors, Riscorp, St. Joe Paper Corp., and Dycom Industries (305) 567-1888 Mr. Adam Aron Chairman & CEO Vail Resorts, Inc. (former President of Kloster Cruise, Ltd. - Miami) (970) 845-2515 I I Descri ption of The Curtiss Group's search process: I Outlined below are the general steps or stages of a typical search process. The specifics associated with a given step will vary based on the needs and preferences of the client and on the nature and complexity of the assignment. I 1. Develop an understanding of the client. I Through meetings and through all of the documentation you can make available to us, the entire search team endeavors to develop an understanding of your organization, history, and culture. This process continues through each step of the assignment as we continue to learn about your business. There is a direct correlation between the degree of client involvement and commitment and the success of the search process. I 2. Define the organizational need. I It is important that we understand the organizational structure into which the candidate must fit. In addition, it is helpful for us to understand your overall business plan and how this individual will impact on the success of that plan. I 3. Draft and review position specifications. I For each assignment, we discuss with you all aspects of the ideal candidate's background and of the general structure and culture into which the person must fit. We I I I then write a draft of the position specifications which includes reporting relationships, primary responsibilities, personal and professional qualifications, and compensation. This draft is carefully reviewed with you and then serves as a guide to our search effort. The position specification is a working document and may undergo modification as the search proceeds. I I 4. Identify qualified candidates and select a benchmark. I After the search itinerary is developed -- which includes logical parameters such as similar companies or similar company functions, geography, and so on -- we identify a first-round of candidates that closely matches your requirements. The purpose is to quickly locate a "benchmark" candidate for you to interview. I The benchmark candidate is a person who is as close to the specifications as possible in skills, experience, and chemistry. We use the feedback from this initial interview to refine our focus and to learn how you interview and evaluate candidates. I 5. Schedule research meetings frequently throughout the search process. I We schedule research meetings with you as often as is appropriate throughout the search process, but we prefer them to occur on at least a monthly basis. A t these meetings, discussions normally include: I Review of search itineraries; Results of candidate interviews; I Re-examination of position specifications based on an analysis of the research to date and on the results of candidate interviews; I Direction and strategy of future search efforts. I The initial research meeting should be held as soon as possible after the benchmark candidate has been interviewed. I 6. Accelerate the research process to identify and interview candidates. I We continue the development of our research and identify the most qualified candidates for our evaluation. No candidate is presented to you without having been extensively interviewed by at least one (usually two) of the senior consultants involved in the assignment. In each case, your first meeting with a candidate is preceded by a written profile and a subjective evaluation (written or oral, as agreed upon). I This phase of the search also includes the development of informal references. This helps in our evaluation, but is designed to avoid compromising any of our potential candidates. I 7. Select, negotiate, and close. I I After selection of a final candidate, formal references are completed and submitted to you. In order to expedite the process, we prefer to remain closely involved in negotiating all issues affecting employment (e.g. compensation, employment contracts, relocation, etc.). I I I You make the decision as to whether you wish to extend the offer of employment or whether you would prefer us to extend the initial offer (based on your policy, on an analysis of negotiations to that point, and on the probability of acceptance). I I Role of The Curtiss Group after submitting top quality, interested candidates to the City of Clearwater: I We continue to communicate actively with the candidate until acceptance and until the initial date of employment is established. We also monitor the candidate in the period between acceptance and start of employment. I With your approval, we remain in contact with the successful candidate throughout the first year of his or her employment. By keeping lines of communication open, we are able to identify any potentially serious problems that may develop. I The Curtiss Group staff members who will be assigned to City of Clearwater search: I Robert L. Beatty, Jr. Managing Partner I Robert 1. Beatty, Jr. joined the Curtiss Group as Managing Partner in April 1991, after three years as Senior Vice President of E.J. Rhodes Associates, an executive search firm in New York that specializes in general, senior management assignments as well as in investment banking and other finance-related assignments. I Prior to his years as an executive search consultant, Mr. Beatty was Executive Vice President, U.S. Operations, with International Bioaccess, a start-up corporation in the high technology field, headquartered in New York, that manufactured and marketed computer-related products for corporations and for government defense and intelligence agencies. As one of the founding executives, he had P&L responsibility for all domestic operations, to include the research and development effort in Palo Alto, California. His client base was evenly split between the private sector and the Federal Government, and his duties included substantial involvement with the venture capital community on behalf of the corporation. I I I Mr. Beatty's tenure with International Bioaccess culminated 12 years of experience in general management with W. R. Grace & Co., with the Data Processing Division of IBM, and with Wang Laboratories, Inc. At Wang Laboratories, Mr. Beatty successfully built and managed the national accounts organization in New York that had line responsibility, world-wide, for their largest national and international accounts. His relationship with W. R. Grace & Co., which has remained close over the years, precipitated his move from New York to southern Florida in the spring of 1991. I , I I Mr. Beatty's corporate career followed five years of infantry and special forces assignments in the United States Marine Corps. He left the service as a Vietnam veteran with the rank of Captain. I Mr. Beatty holds a B.A. degree from Amherst College. He and his wife, Michele, have three children and live in West Palm Beach. , I II I I John A. Farrell Managing Partner - Tampa Bay Region I Mr. John A. Farrell has been with the Curtiss Group International since November 1987. His prior experience includes 19 years of business and finance-related positions in the private sector. As one of our senior partners, he concentrates on the financial services industry, has consulted on a broad range of genera] management assignments, and lends his expertise to the U.S. Department of State, an established client of the Curtiss Group. I I Previously, Mr. Farrell was with the Bank of Beverly Hills in California, directly responsible for the bank's commercia] loan and commercia] mortgage production as well as for all business development activity related to corporate banking. Prior to the Bank of Beverly Hills, Mr. Farrell was a member of the Wells Fargo Bank, Commercia] Banking Division. He was responsible for the bank's middle-market business development production in Centra] Los Ange]es and Long Beach. In his 12 years of commercia] banking, he and the various groups he managed were involved with loan underwriting, correspondent banking, product development, commercia] mortgage production, business development management and training. I I Mr. Farrell's banking career on the West Coast began with Union Bank after he was recruited away from Xerox Corporation in San Francisco. This followed his early career in sales and marketing management with Xerox in Washington, D.C., where his performance was repeatedly recognized with both regional and national awards. I I Mr. Farrell holds a B.A. degree from the University of Mary]and. He lives in Tampa. I David B. Miner Partner I Mr. Miner brings 10 years of "Big 6" and entrepreneurial management consulting experience to our firm. Our newest partner, he joined the firm in 1996 and will be relocating to Paris this fall in order to open a Curtiss Group Internationa] office on the European continent. This new office will complement and augment our existing partners there as well as work closely with our other partners throughout the continent and in the United Kingdom. I Most recently, Mr. Miner spent four years as a principal of the Moore Research Group in Philadelphia. With primary responsibility for clients in the northeastern United States, he coordinated and managed confidential executive search and management consulting engagements in a variety of fields. He also has extensive experience in MIS and in the genera] world of high technology, strengths that Mr. Miner will bring to bear for us abroad. I I Prior to the Moore Research Group, Mr. Miner was a Manager in the Management Consulting Services practice of Price Waterhouse in Chicago. He began his career in Audit Services, but moved quickly to MCS, where he spent five of his six years at PW. His responsibilities included managing a variety of information technology projects for Fortune-1DD clients as well as for smaller firms in a wide range of industries. I I Between his undergraduate and graduate educations, Mr. Miner was a history teacher and a track coach at St. Paul's Schoo] in Concord, New Hampshire. I Mr. Miner has traveled extensively abroad and is fluent in French. His undergraduate degree in Near Eastern and Is]amic history is from Yale University and his MBA is from the Fuqua Schoo] of Business at Duke University. I Mr. Miner is married with one daughter and lives in Boca Raton. I I I Preliminary meetings with representatives of the City of Clearwater: I The Curtiss Group will arrange a meeting with each of the council members and officials who will have an active role in the search process and selection of the new City Manager. We believe it is important to not only fully understand the duties and responsibilities of the position, but to also be acquainted with the individuals who will become the City Manager's new associates. I Face-to-face interviews with selected candidates: I All candidates who meet the requisites of the position and have expressed interest in the City Manager's position will be interviewed after a preliminary reference check has been made. We believe this is an essential part of the process because it allows us to evaluate the candidate's communication skills and professional deportment. I I How candidate interest is determined: I Candidates who hold similar public administration responsibilities with other municipalities will be subject to the Florida "Sunshine Law" which makes their candidacy a public record and should eliminate those individuals having only passive interest in the job. For those who do not fall into this catagery, a careful assessment of the candidate's reasoning and motivation to pursue the job will be used to determine their interest. I Nature of candidate background review: I Employment confirmation, professional reference checks and education verification are provided as part of The Curtiss Group's standard search service. Though some clients prefer to check credit and criminal history using their own sources, we will be happy to provide these reports as well as drug testing and psychological evaluations on a net cost basis. I I Additional consulting services provided: I Over the years The Curtiss Group has provided our clients with assistance in establishing procedures for interviewing, evaluating and selecting candidates. We can also assist in determining whether additional evaluations such as drug testing and psychological testing should be included in the search process. I Cost I Retainer fee: I The Curtiss Group will conduct the City Manager search for a flat fee of $22,500 plus reimbursement for direct out-of-pocket expenses. The retainer is payable in three installments: one-third payable at the inception of the assignment; one-third at thirty days; and the final third upon completion of the assignment (upon formal offer and acceptance of offer). I I I I I Reimbursable costs: I All direct expenses incurred in the course of the assignment (i.e. telephone, mail, interview expenses, etc.) will be itemized and billed on a monthly basis. With the exception of these direct, out-of-pocket expenses, no other fees apply. I No single expense item exceeding $200 will be incurred without prior approval of the City of Clearwater. This procedure will allow monitoring and control of expenses without need to establish an arbitrary expense cap. I No projected travel expenses have been estimated for this search assignment. I Guarantee The Curtiss Group offers an unconditional performance guarantee: I If the employment of any Curtiss-selected executive ends - for any reason whatsoever, either voluntary or involuntarily - within one full year from the initial date of hire, the Curtiss Group, on request, will replace that executive at no additional cost to the City of Clearwater, except for direct expenses. I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CI'I-TE C:CHTISS C~RO{JP INTERNATIONAL E::\l'T:UTIVL .')r_-\T~(,I-I C(.);'-J':--til.TIl'\(: \\'i)IU,!)\\'lIH ~,joRTHEr~I'! TRUST 301 YAMATO F~O/,D BOCA R,<\TON. FL (561) 997-0011 FA.X (551) 9~J7-0087 CONTENTS Introduction Why The Curtiss Group? The Search Process Representative Clients Principal Biographies 1..05 ;-\1\lGCLES I I __J \11[1'.11-1/\ 2URICI-I I I I I I I I I I I I I I I I I I I I INTRODUCTION The Curtiss Group, Inc. was founded in 1980 with the clear objective of providing executive search services of the highest possible quality. Since that time, we have established an outstanding reputation for integrity, for intensity of effort, and for an unyielding determination to do the best possible job for our clients. Our commitments are simple. They remain unchanged and will continue. To provide executive search services of the highest quality to our clients, and to complete each assignment successfully no matter how much time and effort are required; To build relationships with our clients by earning their trust and keeping it; To retain our outstanding professionals, hire new ones of the same caliber as needed by our clients, and add value to the services they provide by emphasizing teamwork and synergy. The Curtiss Group, Inc. provides classic executive search consulting services -- retainer-based only -- to its client corporations and organizations. Please note that we do not participate in contingency recruiting or provide placement services to those seeking employment. I I I I I I I I I I I I I I I I I I I WHY THE CURTISS GROUP? · We have never failed to fill an assignment in our history as a firm. This is an extraordinary achievement when compared with a published industry average of an 80-85% completion rate year after year. · This record of success is backed by strict adherence to a stringent code of fundamental ethics and professional practices. · Our client base reflects a broad range of industries, from banking, medical, genetic engineering, and consumer products, to insurance, government, real estate, and high technology. And we have handled assignments for this client base in all management functions. · Each of our senior officers brings many years of executive-level, business experience to bear on your requirements. These professionals include senior line executives and directors of Fortune 500 companies, senior human resource executives, and successful entrepreneurs of national and international businesses. All of us have substantial experience as hiring managers ourselves in our former careers. Quite simply, there are no consultants at The Curtiss Group who did not spend many years on your side of the desk first. And we think this is a prerequisite to providing the level of expertise and service that any client should expect of a quality search firm. · Our goal is long-term relationships with a small and select number of clients. As a result, we offer these clients a broader research base from which we can select our candidates. Since ethical standards in the classical search world demand that client companies may never be contacted on behalf of other clients, the large search firms are restricted in their recruiting efforts by client exclusions which substantially reduce the number of potential candidates they can approach on your behalf. Our controlled and limited client roster, on the other hand, guarantees you the widest possible industry base to be searched for your specific requirements. · We offer our clients the same quality of service for assignments at most levels of management. As a result, we eliminate the need for our clients to work with contingency firms or personnel agencies if compensation for a certain position happens to be below the arbitrary levels set by our competitors. By developing this multi-level relationship with our clients, we achieve a much more comprehensive understanding of their business and their culture. I I I I I I I I I I I I I I I I I I I . We prefer to conduct a search process which is highly interactive with our client. We recommend a greater number of interviews than is traditional, more frequent research meetings, and as much client commitment and involvement as possible. Our experience with clients who will participate to this level has been that they take full advantage of the significant added value we can provide throughout the assignment, and that they usually end up with results that go well beyond simply the right person for the position. . We ensure that the partners of the firm take primary, hands-on responsibility for each and every client. They are involved in all of the preliminary meetings with you and in all of the subsequent search activities.. We do not have partners or senior officers who sell the services of our firm and other associates who then manage the assignment. . We charge 33 1/3% of the first year's compensation, plus expenses (which, because of our approach to search, are substantially lower than the industry standard). In addition, we offer an unusual variety of contractual alternatives which are negotiated based upon a combination of factors, including the complexity of the assignment and our clients' needs. . Unlike any other firm in our industry that we know of, we offer a unique guarantee: If -- during the first 30 days of any search assignment -- you are unhappy with the quality of our research or the level of our service, we will cancel the search and refund all retainers paid to that point. And we will put this guarantee in writing. . Finally, if the employment of any Curtiss-selected executive ends, either voluntarily or involuntarily, within one year from the date of hire, we will reconduct a full search and replace that executive for billable expenses only. I I I I I I I I I I I I I I I I I I I THE SEARCH PROCESS Outlined below are the general steps or stages of a typical search process. The specifics associated with a given step will vary based on the needs and preferences of the client and on the nature and complexity of the assignment. 1. Develop an understanding of the client. Through meetings and through all of the documentation you can make available to us, the entire search team endeavors to develop an understanding of your organization, history, and culture. This process continues through each step of the assignment as we continue to learn about your business. There is a direct correlation between the degree of client involvement and commitment and the success of the search process. 2. Define the organizational need. It is important that we understand the organizational structure into which the candidate must fit. In addition, it is helpful for us to understand your overall business plan and how this individual will impact on the success of that plan. 3. Draft and review position specifications. For each assignment, we discuss with you all aspects of the ideal candidate's background and of the general structure and culture into which the person must fit. We then write a draft of the position specifications which includes reporting relationships, primary responsibilities, personal and professional qualifications, and compensation. This draft is carefully reviewed with you and then serves as a guide to our search effort. The position specification is a working document and may undergo modification as the search proceeds. 4. Identify qualified candidates and select a benchmark. After the search itinerary is developed -- which includes logical parameters such as similar companies or similar company functions, geography, and so on -- we identify a first-round of candidates that closely matches your requirements. The purpose is to quickly locate a "benchmark" candidate for you to interview. I I I I I I I I I I I I I I I I I I I The benchmark candidate is a person who is as close to the specifications as possible in skills, experience, and chemistry. We use the feedback from this initial interview to refine our focus and to learn how you interview and evaluate candidates. 5. Schedule research meetings frequently throughout the search process. We schedule research meetings with you as often as is appropriate throughout the search process, but we prefer them to occur on at least a monthly basis. At these meetings, discussions normally include: Review of search itineraries; Results of candidate interviews; Re-examination of position specifications based on an analysis of the research to date and on the results of candidate interviews; Direction and strategy of future search efforts. The initial research meeting should be held as soon as possible after the benchmark candidate has been interviewed. 6. Accelerate the research process to identify and interview candidates. We continue the development of our research and identify the most qualified candidates for our evaluation. No candidate is presented to you without having been extensively interviewed by at least one (usually two) of the senior consultants involved in the assignment. In each case, your first meeting with a candidate is preceded by a written profile and a subjective evaluation (written or orat as agreed upon). This phase of the search also includes the development of informal references. This helps in our evaluation, but is designed to avoid compromising any of our potential candidates. 7. Select, negotiate, and close. After selection of a final candidate, formal references are completed and submitted to you. In order to expedite the process, we prefer to remain closely involved in negotiating all issues affecting employment (e.g. compensation, employment contracts, relocation, etc.). I I I I I I I I I I I I I I I I I I I You make the decision as to whether you wish to extend the offer of employment or whether you would prefer us to extend the initial offer (based on your policy, on an analysis of negotiations to that point, and on the probability of acceptance). We continue to communicate actively with the candidate until acceptance and until the initial date of employment is established. We also monitor the candidate in the period between acceptance and start of employment. 8. Follow-up With your approvat we remain in contact with the successful candidate throughout the first year of his or her employment. By keeping lines of communication open, we are able to identify any potentially serious problems that may develop. I I I I I I I I I I I I I I I I I I I REPRESENTATIVE CLIENTS Alexander Proudfoot American Express American Title Insurance Arvida Corporation Bessemer Trust Capital Bank Citibank City of Lake Mary City of Vero Beach Coca Cola U.s.A. Coulter Electronic County of Palm Beach Dun & Bradstreet Dycom Industries, Inc. Encore Computer First Union National Bank FPL Group Gulfstream Housing Corporation HIP Health Plan of Florida Holy Cross Hospital IBM PC Company ISR Global Telecom ITT JM Family Enterprises John Alden Financial Services Kloster Cruise Ltd. Knight -Ridder Lennar Corporation Lockheed Martin Corporation McDonald's Corporation Motorola North Broward Hospital District Northern Telecom Pepsi-Cola International, Latin America Price Waterhouse Racal-Milgo Royal Caribbean Cruises Ltd. Ryder System, Inc. Scientific Atlanta Sensormatic Electronics Corporation Siemens Corporation Simon & Schuster St. Joe Corporation (formerly St. Joe Paper) Sylvania Lighting International Telematics International Tropical Shipping Company United Technologies U.s. Department of State Value Rent-A-Car I I I I I I I I I I I I I I I I I I I THE CURTISS GROUP IIC WILLIAM E. FRANK,JR. PRESIDENT William E. Frank, Jr. founded the Curtiss Group lIC in January 1980 for the sole purpose of providing the highest quality executive search services in the state of Florida. His initial focus on quality retained search in the region was so successful that demand for the firm's services grew nationwide. This reputation was further enhanced when the Curtiss Group was selected as the first executive search firm ever authorized by the Federal Government to work on a retainer basis. That client was the U.S. Department of State, and today-through a major international alliance of search professionals-the Curtiss Group has offices in over 20 principal cities throughout the world. During his many years in executive search, Mr. Frank has completed more than 300 assignments for a wide variety of corporations and organizations - in both the private and public sectors and in most management functions. Prior to founding the Curtiss Group, Mr. Frank was the Vice President of Human Resources for the lIT Corporation, a position he held for seven years. During his time with lIT, he had the distinction of being the youngest vice president in the history of the corporation. His previous experience included a variety of senior human resources positions - all of them employment and recruiting related - for the Allis Chalmers Corporation and for Wometco Enterprises, two other Fortune 500 companies. Combined with his tenure at the Curtiss Group, Mr. Frank has over 25 years of executive-level recruiting experience. Mr. Frank holds a B.A. degree from Pennsylvania State University and has been a Florida resident for close to 30 years. He and his wife, Lesley, have two children and live in Boca Raton. lie $ EXECUTIVE SEARCH WORLDWIDE. AMSTERDAM. BANGKOK. BUENOS AIRES. CHICAGO, COPENHAGEN. DALLAS. FRANKFURT. HAMBURG. HONG KONG. JAKARTA. LONDON LOS ANGELES. MADRID. MEXICO CITY, MILAN. NEW YORK. OSLO. PARIS. SAN FRANCISCO. SAD PAULO. SINGAPORE. STOCKHOLM. TOKYO. TORONTO. VIENNA. ZURICH I I I I I I I I I I I I I I I I I I I THE CURTISS GROUP IIC ROBERT L. BEATTY, JR. MANAGING PARTNER Robert L. Beatty, Jr. joined the Curtiss Group as Managing Partner in April 1991, after three years as Senior Vice President of E.J. Rhodes Associates, an executive search firm in New York that specializes in general, senior management assignments as well as in investment banking and other finance-related assignments. Prior to his years as an executive search consultant, Mr. Beatty was Executive Vice President, U.S. Operations, with International Bioaccess, a start-up corporation in the high- technology field, headquartered in New York, that manufactured and marketed computer-related products for corporations and for government defense and intelligence agencies. As one of the founding executives, he had P&L responsibility for all domestic operations, to include the research and development effort in Palo Alto, California. His client base was evenly split between the private sector and the Federal Government, and his duties included substantial involvement with the venture capital community on behalf of the corporation. Mr. Beatty's tenure with International Bioaccess culminated 12 years of experience in general management with W. R. Grace & Co., with the Data Processing Division of IBM, and with Wang Laboratories, Inc. At Wang Laboratories, Mr. Beatty successfully built and managed the national accounts organization in New York that had line responsibility, world-wide, for their largest national and international accounts. His relationship with W. R. Grace & Co., which has remained close over the years, precipitated his move from New York to southern Florida in the spring of 1991. Mr. Beatty's corporate career followed five years of infantry and special forces assignments in the United States Marine Corps. He left the service as a Vietnam veteran with the rank of Captain. Mr. Beatty holds a B.A. degree from Amherst College. He and his wife, Michele, have three children and live in West Palm Beach. lie e EXECUTIVE SEARCH WORLDWIDE. AMSTERDAM. BANGKOK. BUENOS AIRES. CHICAGO. COPENHAGEN. DALLAS. FRANKFURT. HAMBURG. HONG KONG. JAKARTA. LONDON LOS ANGELES, MADRID. MEXICO CITY. MILAN. NEW YORK. OSLO, PARIS. SAN FRANCISCO. SAD PAULO. SINGAPORE. STOCKHOLM. TOKYO. TORONTO. VIENNA. ZURICH I I I I I I II I I I I I I I I I I I I Our Partners Lynn H. Bentley Partner Lynn H. Bentley has been with Curtiss Group International since August 1988. His prior experience includes 20 years of business and management related positions in the consumer products, pharmaceutical, chemical, and high technology industries. As one of our senior partners, he concentrates on the high technology industry and has consulted on a variety of general and organization management assignments. Previously, Mr. Bentley was Director of Human Resources/ Administration for Gould Electronics for Business Units based in Boston and Ft. Lauderdale. He was responsible for development of leading edge human resources and administrative services programs for domestic and international operations. Prior to Gould, he was with Exxon Enterprises and responsible for development of a start-up software systems organization. Before Exxon, Mr. Bentley held a variety of management positions with Warner Lambert, Harris Corporation, Pfizer, Inc. and The Gillette Company. His combined consulting and industry experience has included business development, marketing, information systems, human resources management, as well as start-up and development projects and businesses. Mr. Bentley served as a Naval Officer with both ship-based and land-based assignments. Mr. Bentley holds B.A. and M.A. degrees from the University of Minnesota and completed an Executive MBA program at Northeastern University. He and his wife, Dorothy, have two children and live in Boca Raton, Florida. Joseph M. Bujold Partner Mr. Bujold joined the Curtiss Group International following an eighteen-year career with Proudfoot PLC, a leading international management consulting firm. His professional association with the Curtiss Group includes several I I I I I I I I I I I I I I I I I I I years as a client, prior to joining us as a partner of the firm and as one of our senior search consultants. At the time of his retirement in September 1995, Mr. Bujold was serving as Group President Americas with responsibility for all operations in North and South America. Previously, he was Chief Executive of the Alexander Proudfoot Company where he supervised company operations in thirty-five countries worldwide. The company, employing 1,200 full-time professionals, annually performed more than 200 assignments in all industrial sectors. From 1979 to 1989, Mr. Bujold, fluent in French, lived abroad. The five-year period in Brussels, when he headed European operations-Proudfoot's largest-was followed by the start-up of the company's business units in the Pacific, five Southeast Asian countries, and, notably, Japan. Mr. Bujold has strong Maine and New England roots. He spent ten years with the Bass Shoe Company in Wilton, Maine, ending his career there as President. His earlier consumer products experience was with the Hathaway Shirt Company of Waterville, Maine. He, and his two grown children, are graduates of Middlebury College. His wife of thirty years is a Colby College graduate where she continues to be actively involved, currently serving as a trustee of their art museum. Mr. Bujold served in the U.s. Army as a rifle company commander. He and his wife live in North Palm Beach, Florida, but continue to spend their summers in Maine. John A. Farrell Partner Mr. John A. Farrell has been with the Curtiss Group International since November 1987. His prior experience includes 19 years of business and finance-related positions in the private sector. As one of our senior partners, he concentrates on the financial services industry, has consulted on a broad range of general management assignments, and lends his expertise to the U.s. Department of State, an established client of the Curtiss Group. Previously, Mr. Farrell was with the Bank of Beverly Hills in California, directly responsible for the bank's commercial loan and commercial mortgage production as well as for all business development activity related to corporate banking. Prior to the Bank of Beverly Hills, Mr. Farrell was a member of the Wells Fargo Bank, Commercial Banking Division. I I I I I I I I I I I I I I I I I I I He was responsible for the bank's middle-market business development production in Central Los Angeles and Long Beach. In his 12 years of commercial banking, he and the various groups he managed were involved with loan underwriting, correspondent banking, product development, commercial mortgage production, business development management and training. Mr. Farrell's banking career on the West Coast began with Union Bank after he was recruited away from Xerox Corporation in San Francisco. This followed his early career in sales and marketing management with Xerox in Washington, D.C., where his performance was repeatedly recognized with both regional and national awards. Mr. Farrell holds a B.A. degree from the University of Maryland. He lives in Fort Lauderdale. Donald J. Franza Partner Mr. Franza is the former Vice President and Chief Financial Officer of the Brazilian operations for Nabisco International. He repatriated to the US. after 20 years abroad with Nabisco (Brazil), Richardson-Vicks (Brazil), and Coca-Cola (Puerto Rico). He began his career in 1972 with Coca-Cola International as a senior financial systems analyst and subsequently held progressively responsible positions in the international sector and in international finance. Among other duties during these years, he was Operational Auditor in Sydney, Australia for the Australian bottling and canning operations as well as chief of accounting at Coca-Cola's headquarters in Atlanta. Mr. Franza's tenure with Coke culminated in his promotion to Assistant Finance Manager of Coca-Cola International de Puerto Rico in San Juan. In 1977, Mr. Franza was recruited from Coca-Cola to become the Area Finance Manager-Latin America for Richardson-Vicks in Connecticut. In this capacity he was responsible for the financial affairs of all Latin American operations. Subsequently, he was promoted to Chief Financial Officer for their Brazilian subsidiaries, which were operating in Rio de Janeiro. In 1982, Mr. Franza joined Nabisco International-Brazil as Chief Financial Officer and was instrumental in the restructuring of the Nabisco Brazilian Companies. In addition, he spearheaded the acquisition program and contributed heavily to the growth of these operations. I I I I I I I I I I I I I I I I I I I Mr. Franza received his Bachelor of Business Administration and then his MBA in Finance from Adelphi University, Garden City, New York in 1972. Some years ago, he co-founded a charity for underprivileged people in Brazil and served four years on the Board of Directors of "The American School of Rio de Janeiro." Mr. Franza is fluent in both Portuguese and Spanish. Mr. Franza and his wife -a physician with a specialty in psychiatry-live in Boca Raton and keep a mountain home in Itaipava, Brazil. They have five children; two of whom still live at home. 1. Lewis Katz Partner Lewis Katz joined the Curtiss Group International in the summer of 1996 following a twenty-five-year business and engineering career. For fourteen years, he was with the American Express Company in New York City at their corporate headquarters and in Florida at the regional headquarters for Latin America. He held increasingly responsible positions in business analysis, finance, planning, and business development, and he travelled extensively worldwide, interfacing with local management. He also interacted closely with the operating and processing centers in the U.s.A. In addition, he recruited MBAs to American Express from MIT, Harvard, Carnegie Mellon, and New York University. For three years, Mr. Katz was the Chief Financial Officer for a not-for-profit organization in Boca Raton, Florida. At the beginning of his career, Mr. Katz worked as an engineer and was involved in the design of fossil and nuclear power plants with Westinghouse Electric Corporation in Pittsburgh, Pennsylvania and with Gibbs & Hill, Inc. Born in Eastern Europe (Romania), Mr. Katz holds a Master of Science in Engineering from the Polytechnic Institute of Bucharest, Romania, as well as a Master of Business Administration from New York University. In addition to English, he is fluent in Romanian and has a working knowledge of Italian, French, and Spanish. Mr. Katz is married to Gabriela, a Board Certified internist and attending physician at St. Mary's and Good Samaritan Hospitals in West Palm Beach, Florida, and a partner in the University Clinical Associates. They live in Boca Raton with their son, Robert. I I I I I I I I I I I I I I I I I I I David B. Miner Partner Mr. Miner brings 10 years of "Big 6" and entrepreneurial management consulting experience to our firm. Our newest partner, he joined the firm in 1996 and will be relocating to Paris this fall in order to open a Curtiss Group International office on the European continent. This new office will complement and augment our existing partners there as well as work closely with our other partners throughout the continent and in the United Kingdom. Most recently, Mr. Miner spent four years as a principal of the Moore Research Group in Philadelphia. With primary responsibility for clients in the northeastern United States, he coordinated and managed confidential executive search and management consulting engagements in a variety of fields. He also has extensive experience in MIS and in the general world of high technology, strengths that Mr. Miner will bring to bear for us abroad. Prior to the Moore Research Group, Mr. Miner was a Manager in the Management Consulting Services practice of Price Waterhouse in Chicago. He began his career in Audit Services, but moved quickly to MCS, where he spent five of his six years at PW. His responsibilities included managing a variety of information technology projects for Fortune-lOa clients as well as for smaller firms in a wide range of industries. Between his undergraduate and graduate educations, Mr. Miner was a history teacher and a track coach at St. Paul's School in Concord, New Hampshire. Mr. Miner has traveled extensively abroad and is fluent in French. His undergraduate degree in Near Eastern and Islamic history is from Yale University and his MBA is from the Fuqua School of Business at Duke University. Mr. Miner is married with one daughter and will live in Paris. I I I I I I I I I I I I I I I I I I I Barry S. Wilder Partner Mr. Wilder joined the Curtiss Group International in 1996 with responsibility for opening our New York office and for expanding our practice into the Northeast financial services arena. While the Curtiss Group has long enjoyed a solid financial services practice in the Southeast, we have not had, heretofore, a physical presence in New York or on Wall Street. Mr. Wilder will split his time between our South Florida headquarters and our New York office. Mr. Wilder spent the last six years as a partner with Rhodes Associates, Inc. in New York City, a retained executive search firm that specializes in financial services-specifically real estate finance-and concentrates on the investment banking community. At Rhodes Associates, Mr. Wilder's clients included Goldman Sachs, J.P. Morgan, Bankers Trust, Cushman & Wakefield, and LaSalle Realty Advisors. Prior to this experience as a financial recruiter, Mr. Wilder had 11 years of experience in finance and real estate, most recently as a Senior Vice President of Cushman & Wakefield, Inc., where he served as Director of Corporate Real Estate Consulting nationwide. Earlier, he was a Vice President at Salomon Brothers Inc. and an Associate at Goldman, Sachs & Co. Mr. Wilder holds an A.B. degree from Princeton University, as well as a Masters degree in Architecture and an MEA, both from Harvard University. In addition, Mr. Wilder served as Captain in the United States Army. Mr. Wilder has two grown children and maintains residences in Manhattan and Miami. ~ ~ ~ s ?j OJ co ~ ~ ~ s [) ..... ~ g '"tj e ~ - 1 a ~ ~ It) ] 0) 0) ..... ...,. ~ N I- en ::J ~ C) ::J <( ~ 8 Cl en e 0:: ::J I ~ I- u. 0 ~ w w ~ 1II0~~:g~ :i..!u....2~-5 '."us::Co) o 1lO ::I ~o III;':: O;!:-;: Co) :i III R ~ a 8's o "ii - c. = ~ 0 g.!::.,I:lY 8 III 0 0":'9 U e~" ';::1 U Eo-< ~ '8 u u s:: o::z:: "'"'" ".~...o s::1II r;_,D<<l~. ~ .,.g 0 ~ ~ ~ 0 ~ U => 0 ~ :D.s 0 u ~ 8 il"t':; - => ~.- u 1:::1 e _ 5 _ g III III ....c: ....- .-:;c.....~.. ....;.::iic........::oc c:I::I ............ :i "'0 0 III c'" Co) '" 8 .:;: (I) U 8' ~..c: f.::! 0'- _ a u a ; III ~ III ... C. u i III,D.<;: ::I i ~ = B,.g a u 0 ~'C c8"s:: 8 -5 ;: u a ~ 8 1lO ~.,,_~~ 00 u~~_ UaUH ~ 1lO ,,".- "..g U l5 1lOii: U ~ III 0 a III U 0 s:: - '" . ..c: l,;;, -...e "ii n ._ "'0 _ .- 8 U 0 '" - III ...- 1lO 1lO ::I Q U - ell s:: e a l:: U 1:: - ~:'9 -= .... ~ .S .5 ~,D > '-a ~ ua III - '-::1 -::Z::::1 --~ s:: .- U ~ ~ -6'~ 0 ~ 0 .S U 8 ~ 0 ~ ~ :-;:" 8- uouo",oo~(I)"'~~u_u-~ Co) ~ l;; ~~:; llOQ.a:::Eo BO\ ~ >-.~~ c ~ ~ g'i -5 ~..g ~ -a B u :: ~ ~ z .a ::z:: J a a u ~ e b.:.s,.g c e. ~ c,.g ;..2 ~ .S"1Il o~ c..." III~ _u- ~u 00 ~-III uu _ C. u. 8"ii 0 .- ~ ..c: u III - U a u ~ III a c ... >.:'9 ~ u..c:" 1lO ~ ~ -; e III u >- Zu ::l .2 "= !!\!:I: u Co) _ " 0"'0 1lO_ u ... - i) -. ~-5 l;; '_oc 2 '" III -.- III ~ H U Co) a H" -" .- 0 t: s:: a ~,.g H ... U ~:::E ~$ ~ ~ - ~ ; :::E ..( ilia u 'u ~""'"s:I ~'8 u" a - ; "'0 Bill> B ... g.5 eta e ~ 8 8 0 ~..c: ~~ g" 1 cS ~ 1lO ~ >, - a c::: e: - Co) 0 ".:: 111_ ",_u III 0" III.".. "',.,'- III H 0 ~... .... - I - t;:: ':::.c u u.::: g S':f u ~ '" e:'~ 8'; 8 u e: a- - Ill..:: ~ .",D ... '" .- 111._._ '" - > u >, u 0.... >,._ III U ..c:,D'" '" 0 >,':;: 8 Co) u g..c: > ~ ~!l! B u ~ "'"'o:€ _'> 1lO-:: ::l >. e: - e: a ~ - :> "'0 ~ U ...- - .. Co) o u u." "'"' .- - >';;> e: . u III "'O.a 0 u Q.~.~,.g o:;~ ~ ~;~ III ~ e~'c llOx~ ~ a.;:: Co) Co)..c:'- >- . Eo-< u c.-ci u Co) 0 ::I u.S ;;> u s:: u ~ "0 1:: - ] ~ ~ a._ a 0 (I) u a 1lO ~ ~ "'0 "0 8 ~ a,D ~ 8 '" .: 8 =.:;: a .S <~:::E ; e: u s:I '" I III III "'0 '" :>. >, 1lO- - "'"' . - '" .- a c ~ 1lO e: .- ..... a e: u e: 0 H U ! "<<i 'C .s .s g <iU" III ~.- 0'0 aU",:::E a ..J c. ~ 1lO OQ:::: ..c:'C 5 c"'O 0 a ~ 0 BIIIIII .u'iic.Co)uf8uC~ .,,"~"ii ~"'I:a:;..c:"'::ll;;aoUl;;ulII aue: ._'- ~ - - == e U < c. c. e: C ~ C..9 .~.a 1lO..c:~1 t-' "'.s g.-.s.2 ~ e ';0;: e~ ~'C e:"ii "'0 0 ~ '" U - - e: III a III III e.sa:.c e: ; ~.c.:.~ j ~ 0" ~..c: ,..::. ..c: ~ J:: ~ c.~ :i.9 Co)..c -= ~ 8 ~ l;;.;! a "'"ii 8 ~.!:: e w~-5..2~,D:;~uu~anO~::l ~~~oa m~::l"'UOo ~CIII~Co)~'" -",. woo ~ ...... 1lO"'O] U t;:: ,..:; "'0 _::l U "'0 U ...J U (I) .. ~ ~ C'; - Cl) ~ e: III "'0 ~ u';..c: ...J '" "..g c...g Cl) '" e: "'0 llO t:IO III e: III > '" -" ~ ; ~ _ >, 1lO > ~ .;:.;:.,5 ~.s ..21111 ~ U'';:: 0 :; z Co)'C u..c e: Cl) "Cl) ~ - ._ "'O..c III . => ::l 1lO... < U ~ .- - >, t=; "'0 ::I a ::l III '" '" "ii Co) O<<lel;;~~~~~~~0~~~~~~~"'05 ~ < a ;.sa ~ ~ ~ 8 ~ ~.= ~ g g ~ x : VOL. 42 NO. 62 . 51.00 MONDAY. NOVEMBER 2 THE NEWSPAPER OF ENTERPRISE, REAL ESTATE AND LAW Board members must get serious about planning UNTIL recently, it was common for public companies' board meet- ings to resemble social gatherings of close acquaintances, says William E. "Bill" Frank Jr., founder and president of The Curtiss Group in Boca Raton, the Florida Division of Placement Interna- tional. Board positions tended to be "cer- emonial," granted as a favor to a friend or business associate and traded between colleagues. Board membership in the 1990s howev- er, has become more of a "job," says Frank. The good 01' boy net- work placed little pre- mium on diversifica- tion of membership, leading to boards with- out direction and exec- utives who frequently weren't accountable to shareholders. But as shareholders take a greater role in the direction of their companies, and as pressures increase to hold board members accountable for company and stock perfor- mance, the methods of finding board mem- bers have become more sophisticated. Even as boards become more responsive to shareholders and focused on company performance, the increased responsibility has dissuaded many candidates from serv- ing because of the potential liability they face. At the same time, the criteria for identi- fying board members has become more stringent. Frank, whose consulting and executive search company has conducted Frank numerous searches for directors of public companies, says that corporate executives should keep the following guidelines in mind: . It is widely perceived that the major role of the board is to hire, fire and evaluate the performance of the president and chief executive officer. Consequently, it is impor- tant that these executives not be directly involved with the selection of a board mem- ber, since it would be difficult for a board member nominated by a CEO to fire or cen- sure him or her. . Boards must plan for inevitable man- agement succession. Directors must take succession planning seriously to insure a smooth transition. They must have formal evaluation and succession procession plans.. . In an age of friendly and hostile acquisitions, directors must keep up with the ever-changing "takeover" law. They must be ready to render a judgment at any moment on a management proposal to acquire, be acquired or fight a corporate raider. . Today's shareholders are becoming increasingly vocal and active. Consequently, directors must take investor relations programs seriously. Directors must be amenable and responsive to share- holder needs, questions and complaints. . Directors must never forget that they are accountable to shareholders. They must constantly evaluate their roles, responsibili- ties and business practices. Today, many boards have developed performance evalu- ation criteria One of the key elements of this evaluation is making sure the boards are properly diversified. ~:T~ ~e.,~:;:,~ d'C :;.~.:;tlO~~ 8-~+~ ~~~tlJ5.;~ sa.", ~~">"'n~S5.~> ~! 3~0 --=_-' m....:;, nVlo"" ::1",~ !!. a ~o '8"""l><~ "''0-:;,(1)(1)'''''''' 0- O a:;,>::r.., *~ ::r(l):c S" o. '" >< ~'O~ <)00 o~ _~~,.,~ nO (I)., ...._~<>> ., 0 0.., ""0 ........~ C '0 ~ "'~.." I"l""~ .,..,::r-~ ::1.- ~ ria ~:;:,.,:;:,:;:,..... "':'0.:5'" 5'c :;;", 0 ~::; ii% C' :;:, ~ ~~ ri <'..."0 ~~ OQ "" .... 00.:" -r:r m ~?'"!'l~~:;:,,,,: (l)=..,(l);:; :;, :::'C(l)~ ..,,0 z =-sg"::ro::ro",oo~""~~~ri'O:;:,~~.,~ z (l) ::n~", ~ ~ a (l);:;> = '" ~ 0 ., ,:: ~ . . .... 0 ., ~ m ~. -a-= ::r'O ljl '" g ~o-"'''g~''' "" 0 ~~ "" ~::T'" ~"g en !n' "'.::r 0 '0 0 ~ ::r,., C' .., 0 "" ::l 0" en . ~.2 ~ _.~ :;, ::::. ~ :;,. ~ .... .... 0 = ~:;, .., 0 ~ :;:, VJ;:;1 -< ::tU""'_CI) ('D~=... (,#)~~nfJ) g.. """'- ~o" ;l....~.c::r:: ''0 ~ ..,~"'" S,,,,,, ~= m ~3~ri~~~~o~O:O':~a"QQg;~'2.g ~.VJO' II - O.~ '0 O' 0 -~ ~" .., ~ ~ rh (") ~ 3 ~::l 0 v;.... m c::: ri ~ ~ c:r-.~ ~ ~ 3 _.0 ~ ~ ~>> ri 00 ':...."':;:, ~ :T-<' ~a o:;l.., 3 ~ _.o~. 'O~ "'0 ~~ ~ n ~~ "';:;> o~n'2. ....c~:;:,:;:, ",-g=ig~:;:,o :;:'(l)~ ....~ ... (l) 0.... :;:, ~ _ (l) 0 :"' r I ~ ::r _..., ..... = . :;:, ~ S ~ (l) 0 ~ =. a (') ~.o ~ sa.'" ~ ~ r;- ~ ~ 0 C' ~ ~.c 03 s,,..,C'0 -< 0 g -'=c::: ~::r03..,,9 0 "" a.....cia ~!!. O-OQ~'O....'l t':>:;, -, ""_.(';> _c'O"~~_:;, _ -'::r:;:, _~o s.' (l)~::r- ~o "''0 ~ ., .,...., :;, -.00 t;;.~....",o~a """l~~g~~=(';>""::lC'(";ja::r15-~.... _. N~ g'O 8::r' ......OQ 3 a Y' >< :;, ~ ~ OQ (l) ~ 0 0 c' ~""(I) a"" (";j::ro::r :t(";j~.C'", ~o @ C'=.C.'O :;:,....<:'l~"'ne.e- ~C' ~!:(r\)~"'~~.(l)c:::Vl.(";jO;:)cr :;:,::r. :;:,(I)-~~"'~~.... .... v~~..... ::l "" ~-:;:, 'l''''''''~::rS.,.., o5.a::';;s'~<o~z,~:;, ~~,O. ,s;J ~"O ~0;>::T ....~ ri (";j Vl oon....,:;, 9 ::rz'" = :;. c::: me 9: - r;- '" ... ~ ~ ~ '" ~ r:r '" (";j "" ~ 0 ; r\)(';>na8-<! a~ ~",.,..,.~:;, ""O~r\)' - ~ '" "0 N V;' '0 0 = '0 ~,:: 0 ..... ~ 0. "::l 0 "0 ~ ",' N ::: .~ _. - (';> _.::r .., '" ~ (l) ...;." .... n.... r:> 3 '0 '0 0 0=0'0~0-' 0.... 0 "'-...r:>....o"',oo..,,~(l)., '"I~..,~ =ri ~"'~a'O ~::r~....~cO:"'::1r;1:;,::l~ l"r" ".., - -",,"::r a . :;, c::: 0'- . 5.' ...~gofi ~r:>or\) ....~03g_.@g~:;,~,og-8 OQ '" ~ .... ~ ., c::: ~:I. :;, ~ - ~~: '0 " ~ c::: ::r::1 ~ ~ a 0 ~ 3 3 ..., S' 0'> ~ ::r~ ~ Q 5'. ~a~C'r\)v;. ~r\):;, O~~Otl..:;,o -.....'" .:;1 r\) ri ~ -6" "'. ~ '9 ~..... 0 ~ :r 5f ~ . 0. ri 15 po. If = ~ e.~:3 >=. :;tlfi::?:!1::;':;tl ::: (l) """l:::::l:s:': 3"" ~ ::l o (l) r;(';> ~ ~ 7'0.:~.., ~ .,'o~ 1"'\0 a ::r::r""3 -.."t.: g _.~ . ~ '" ::l g "';::" _.-"':;' Q.~ ~'O ..., r:> "".," 0..' -.-.- ,.. ~ ~C' --.r,; -'0.-,.,"" r,; 3 "" ~::l. (l) ~ \1 \, J ~... (t) (j .., ~ 0 r';I f"';l - ...., .. 3 S, c '"Ot;;'::;"::;~'" g-~c:Y' tIJ::l !:-< ~ ::rQ._.~.....;l ~;;-r,; '" C' 2. 0" =. ~ ':;; .., ~ ., ~. 7''< !n' 0. g.... Vi'~',~.,.., ""'0' ,.. ::r:il - . "" '" 0 ~ "" ~ ~ -< 0 .;::.. ~ (';> '" 'oJ '-" 0 -I":>" r,; ~...,"';:;>=O::l=. 03':;,0(1)-" _.E::~"'''Oct:Or:r::J''' ~ ~:3 III '"' (') ~ (';> ~ ....:3:;, ::l ~ ., ;:;> ~.:;, ;;1 ::l, (l) (l) ,., ~_~lIloo~::r2""'0", '<~I":>:;,O'I":>....VJo.::r ,.,.. _.........., ~ '* -.,... - 3::s .., OIQ - - ::rg~ g ....::.:0.... g.2.tIJ~ 000 I)'" &,:->;; c 5..... n_"!!lfotn::r::-:~~I""':l"'~(';> .,~:R_ :~:l =- :3..,.._jD-~.,.,=",~ ~... r\) ;:;-_.~ t")-.n.. ~oipa-:3"'""=>-!..,, :T~na::lr:> ::r~~a ~~"'IIl~a~"""l::r:;:,g~~~~ .,.,"'~~ no' ~o~~, -'Lfot~ tll:l ~",(l).;::..::l'r- =.,.,'" - _.v~#' -< .,., '" ....7'.,. n . = ~ '" r:r '" ~ '00 3 c =.~(l) :r n <:'l t") ~.;::..:l ..... ~ ..... =.,.., N 0 - '" 00.... (';>: '" ~nO .,.,~"~~ ~~(")~j Oc ..,-~ ::r", - 9 a 3 ~~ g.~ @ -,S's'3.t!1o a.:&~ ~~ ~ S'~.... ~ n '0 :3 OQ = t") - ~'< '" 0. I":> ~ .... n '" .. .... - :r =::l~ nE\llC:::~_~:;:'",,(')'O 1":>00........_. -::r::ll":> , ~ . VJ I ;;0.. I. I _ I ''"' I" en O. ." ~ 0.. Q 0 ('tl ~~ o oV;'~"O ~. s.""o ~o:s. ~!::::. '2.~ :;jQ.' a ~= ~::l(l)_. oa~ g~"'~~g ~ 3. ~;;to"'~~"g~ r\) _. (';>...... =.... a ~'2.:;1 , _.~.~ ::r(';> "'.ri a", -. o.":~ ~ 0 ~ 3 0.<1> '" =t'!,nl S' -'''0 -- ~;;r _. :;.;:;l ~ ::r ~ if ~ ~.'O '<.. ~ ~ '" S' o~ riri@~<!"l = &, . o..?' == : . ~ -. .-. ::r"""l ~:3 ",'~ el g Jg 9" g 0 :s:':;;t::l3 ~S'~ -'.., t: 0 .....,.. OQ.... ~...,(';>.,....._ 'oJ 3"""'1":>(';>...,(")~ _.::l6>....oll>O~ o-",::r><ri::l(".: ~"".:~-g ~:?Q. ;;:1: ---- n t"')-' 2. ~oV)-~-:;, ....., ~ w'" (I) .... n""~'" -<;:;lo ~:",_Vl::rO",:;, ;:!.. 0 a (';> 00 (l) ~ ::;'OQ _. t") '0 C ~ ::l .., _'0 3-"" (';>.., 0 -3 -. >< ~ ~ 15''0 g g ;:; ~- ::s tI) _ ~ ~o 05'~' ::;':.. ~'O ... "" :;, ~ ~........, -on . :lo~!. ~'c ~ ::; ~:T Jg '?- i I ! a: Cf) ~ ~ 2'3 0"2'0> a> 'TI::Z:0 -0'< -:E)(.... c:z :a:....o:a:o>~~Z 3'a>:::=,<c: ;It''~~ a> ~c5~~-"::Z: -. 0 < c: ...... m ::J :l-.3a>....~ :- 109. (/l~= (/l ~ ~ 2 .... ..... rD ~ 0- ~ tI3 ~ ~ ,... s: ~ 0 Z ~ 0 )> -~~ ~ z~ o~ ~~ ~ ~ ~~ a m __ :DC; I\J 9 ...... ~ (0 (0 01 1.I.e Partners Executive Search Worldwide Australia MAXIM EXECUTIVE SEARCH Level 15, AMP Centre 50 Bridge Street Sydney NSW 2000 Tel: 61 2 233 2622 Fax: 61 22214686 Contact: Neville: Mills Austria DR. WEBER EXECUTIVE SEARCH Hohnegasse 1 A-U80 Wien Tel: 43 14705250 Fax: 43147052409 Contact: Dr. Hans-Joachim Weber Canada STONEHAM ASSOCIATES Royal Bank Plaza, South Tower 200 Bay Street, Suite 2930 P.O. Box 105 Toronto, Ontario M5J 2]3 Tel: 1 4163620852 Fax: 1 4163629526 Contacts: Herbert E.C. Stoneham Herman ten Cate Denmark J. FRIIS BERG & PARTNERS Amaliegade 6 DK 1256 Copenhagen K Tel: 45 33 15 30 88 Fax: 45 33 32 6082 Contacts: J ens T. Foged Christen Dalum Finland J. FRIISBERG & PARTNERS Gyldenintie 2 A FIN 00200 Helsinki Tel: 358 0621 5200 Fax: 3580621 5521 Contact: Kurt Kaariainen Offices in the Baltic Countries and St. Petersburg France PROGRESS 57, avenue Franklin D. Ro(})sevelt F- 7 5008 Paris Tel: 33 14289 1201 Fax: 33 1 42 25 1855 Contacts: Jean Losi Jean-Marie Faraggi Martine Bournerias Germany GOETZ VON WALDAU & PARTNER GronstettenstraBe 25 D-60322 Frankfurt am Main Tel: 49 69 596 9503 Fax: 49 69 596 9903 Contact: Goetz Hoffman von Waldau IIC PARTNERS Kaiser-Wilhelm-Ring 43 A DA0545 Dusseldorf Tel: 49 2119549820 Fax: 49 2 U 9 54 98 50 Contact: Dr. Gerd B. Zimmermann IIC PARTNERS Ballindamm 38 D-20095 Hamburg Tel: 49403232 290 Fax: 49 40 32 32 29 29 Contact: Karsten D. Wick Hong Kong MASTERMIND SEARCH ADVISORS LTD. Room 4509 China Resources Building 26 Harbour Road Wanchai - Hong Kong Tel: 852 2827 2882 Fax: 852 2877 9651 Contact: David K. Ho Offices in Beijing, GuangzhlOu, Shanghai, and Shenzhen Indonesia RICHARD GLYNN CONSULTANTS JI Taman Pluit Kencana Dallam No. 24 Jakarta 14450 Tel: 62 216613617/8 Fax: 62 21 667 8347 Contact: Thomas H. Teguharja . I~!:2e! Italy J. FRIISBERG & PARTNERS 5, Piazza Velasca 120122 Milan Tel: 39 2 86 36 65 Fax: 39 2 72 02 25 42 Contact: Gianni Franceschini J. FRIIS BERG & PARTNERS 121, Via Sistina 100187 Rome Tel: 39 6 474 0400 Fax: 39 6478 18444 Contact: Gemma Toccafondi Mexico FRANK P. HILL EXECUTIVE SEARCH Rio Guadalquivir 38- 701 Co!. Cuauhtemoc 06500 Mexico, D.E Mexico Tel: 52 5 208 4902 Fax: 52 5 208 8369 Contacts: Frank P. Hill Andrea Garcia Netherlands HOLTROP RAVESLOOT EN PARTNERS Benelux Building Van Heuven Goedhartlaan 121- Postbus 2211 NL-1180 EE Amstelveen Tel: 31206470201 Fax: 31 206450715 Contacts: Wim Ravesloot Cees van den Berg Freek Muller Norway A/S ISCO GROUP Oscars gate 23 P.O. Box 7193-Majorstua N-0307 Oslo Tel: 4722 56 7100 Fax: 47 22 56 71 90 Contacts: Jens P. Heyerdahl Knut Isachsen artners ~ch Worldwide . Russia TRIZA GROUP GALLA-SUPERSTAFF 17 Kolokolnikov Drv., Suite 20 Moscow 103045, Russia Tel: 7 095 925 6276 Fax: 7 095 928 6102 Contacts: Georgy,. Pavlov Dmitry Khlebnikov Yelena Yegournova Singapore RICHARD GLYNN CONSULTANTS 65 Chulia Street, #40-03 OCBC Centre Singapore 049513 Tel: 65 538 3393 Fax: 65 532 7078 Contact: Richard Glynn Catherine Glynn Leonard Tan South Africa SEARCH SOLUTIONS P.O. Box 783359 Sandton 2146 1st Floor Paddock View 36 Wierda Road West Wierda Valley Sandton Tel: 27 7783 7160 Fax: 27 7 884 3866 Contact: Penny Gerrard Spain DALMAR, S.L. Paseo de la Habana 14-6 E-28036 Madrid Tel: 34 1 562 44 46 Fax: 34 1 562 44 45 Contact: Christopher Hartley PROGRESS EXECUTIVE SEARCH Padilla, 32 E-28006 Madrid Tel: 341 575 1000 Fax: 34 1 577 1628 Contact: Pedro Moreno de los Rios Sweden J. FRIIS BERG & PARTNERS Jakobsbergsgatan 8 SIll 44 Stockholm Tel: 46 8 611 67 55 Fax: 46 8 678 12 25 Contact: Per Witt Switzerland J. FRIIS BERG & PARTNERS 3, Chemin de Mornex CH 1003 Lausanne Tel: 41 213208844 Fax: 41 21 323 5403 Contact: Jl'lrgen Friisberg J. FRIISBERG CONSULTANTS AG. Gustav Maurerstrasse 25 CH 8702 Zollikon-Zurich Tel: 41 13922003 Fax: 411392 2002 Contact: Urs Wiirtrich Taiwan INTELLIGENT MANPOWER CO. 5C, #21, See. 1 Tun Hwa S. Road Taipei Taiwan 105 Tel: 886 2 578 2582 Fax: 886 2 578 7660 Contacts: William K. Uu S. L. Wu Thailand RICHARD GLYNN CONSULTANTS 427/42 Diamond Tower Silom Road Soi 7 Bangkok 10500 G.P.O. 209 Bangkok 10501 Tel: 66 2 2315131 Fax: 6622315131 Contacts: Richard Glynn Nampueng Phanayangkul United Kingdom WAGGETT & COMPANY Four Clifford Street London WIX lRB Tel: 441714942551 Fax: 44 171 4390222 Contacts: Michael Waggett Dr. John Mellor Fiona Hanan USA THE CURTISS GROUP INTERNATIONAL Northern Trust Plaza 301 Yamato Road, Suite 2112 Boca Raton, Florida 33431 Tel: 1 407 997 0011 Fax: 1 407 997 0087 Contacts: William E. Frank, Jr. Robert L. Beatty, Jr. John A Farrell Peter J .M. Goossens Patrick A. Hidalgo LARSEN, ZILLIACUS & ASSOCIATES, INC. 601 West Fifth Street, Suite 710 Los Angeles, California 90071 Tel: 1213 243 0033 Fax: 1 213 243 0030 Contacts: Richard E. Larsen Patrick W. Zilliacus SANDHURST ASSOCIATES 4851 LBJ Freeway, Suite 601 Dallas, Texas 75244 Tel: 1 214458 1212 Fax: 1 2147020710 Contacts: James P. Demchak Duane R. Goar Harvey D. Letcher J. Herbert Wise SLAYTON INTERNATIONAL, INC. 181 West Madison Street Suite 4510 Chicago, Illinois 60602 Tel: 1 3124560080 Fax: 13124560089 Contact: Richard C. Slayton W.T.W. ASSOCIATES, INC. 675 Third Avenue, Suite 2808 New York, New York 10017 Tel: 1 212972 6990 Fax: 1 2122970546 Contacts: Warren T. Wasp, Jr. David W. Morris Thomas Schneider Nancy W. Lombardi (I) 1.I.e Partners Executive Search Worldwide PALM BEACH POST MONDAY, FEBRUARY 5, ] 996 BUSINESS DAY ONE HOLD ONTO YOUR HEADS! Executive headhunter William E. Frank Jr. runs The Curtiss Group in Boca Raton, and when he comes calling, your best employees just might go walking. PAGE 7 THE PALM BEACH POST COVER STORY FEBHUARY 5, 1996 7 REEUNG IN THE BIG FISH A Boca Raton executive search firm relies on gumption and guile to seduce top-money bosses. . By DANIELLE HERUBIN Palm Beach Post Staff Writer Negotiations held behind pot- ted ferns. A secret meeting in a mountain cabin in Norway. Hoarse telephone whispers. The final act of seduction. Sound like the newest James Bond flick? Hardly, These are true tales of how Boca Raton's The Cur- tiss Group handles some of its big- gest executive recruitment cases. "It's never boring," said William E. Frank Jr., president of The Curtiss Group. Demand growing That's the sexy side of executive searching - the exotic locales, the midnight meetings, the spy-like act of "turning" an enemy's chief execu- tive into a client's new employee. The not-so-pretty side. is that in times like these - with thousands of workers being laid off and career managers sent home with the rest of them - demand for the services of companies such as Frank's is grow- ing. The executive search market in the United States is about $2 billion, up from about $100 million in 1970. Worldwide (and Frank's company does a lot of international work), the market is approaching $4 billion. But Frank only handles the top echelon. Headhunters abound What most people consider exec- utive search firms - commonly called headhunters - can be found on most any street corner. The Yel- low Pages lists 17 executive search consultants just in West Palm Beach. They usually accept the job to find a body on contingency, meaning they don't get paid until they deliver. On average, they find people who make in the $30,000 to $75,000 salary range. The Curtiss Group is not one of them. Curtiss and a select few - in- cluding Daniel A. Silverstein Asso- ciates in Boca Raton - operate on a retainer basis. That means they get paid up front. [t also means that they typically handle executives with salaries rang- ing from $75,000 to $1 million - the average is around $150,O(Xl. Many job-hunters send their re- sumes to Frank. They might as well not bother. "Job ads get people out of work or about to be out of work," Frank said. "Lee Iacocca wasn't reading the neV;',spaper when he went to Chrys- ler. William E. Frank Jr., president of The Curtiss Group, subscribes to the theory that the hardest executives to acquire may well be the best. Instead, Frank prefers to hunt his own game under the theory that the hardest executives to acquire may well be the best. A typical search might begin like this: A client wants a chief financial officer who has taken firms public. Frank might begin by calling people at the Securities and Exchange Com- mission and law finns that specialize in initial public offerings. He looks for patterns. "If Joe Blow's name comes up at one outfit, and then another, and then another, then obviously we're looking at a superstar," Frank said. "Then our job is to seduce that per- son." He examines the client's job cul- ture - a laid-back company isn't going to want an uptight boss. Then the seduction begins. Secrecy the key The main obstacle is often the person's secretary. Frank admits to being less than candid with secretar. ies. He'll say its "personal," or that "yes, he knows why I'm calling," or that he's checking on someone's con- fidential reference. The meetings have taken place in cabins in the mountains of Norway, Bolivia, and behind potted plants in airport bars. When you're a chief executive making nearly $1 million a year, there's no such thing as too much secrecy when being courted by another finn. Frank broke into the million-dol- lar club in 1993 when he negotiated Adam Aron's $1 million-a-year com. pensation package. Aran, then senior vice president of marketing for Unit- ed Airlines became chid executive oithe Cor~l Gables-based Kloster Cruise Ltd. Frank's company also has worked for FPL Group, Knight-Rid- der, Palm Beach County, Sensorma- tic Electronics Corp" Siemens Corp. and Motorola. It's getting a lot easier to recruit top candidates to Florida, Frank said. It used to be considered a backwater, somewhere people went when they retired or their careers were shot. Now it's hot. Companies are looking for differ- ent things now, too. Women and minorities are frequently requested. "It used to be that 40 was an age when you ~ere considered old," Frank said. "Companies want more maturity these days." THE CURTISS GROUP Headquarters: Boca Raton Founded: 1980 Business: Executive searches for managers making more than $75,000: the company works only on an upfront retainer basis; also does outplacement and ca- reer consulting. Employees: 21, plus part-time employees. Offices: Boca Raton; Miami; Sao Paulo, Brazil; Tampa; Fort Lauderdale; Jacksonville; OMan- do. A new office is being opened in New YorK City. Pay up, the state tells IFF policyholders. IN THE NEWS 4 Hiring the right lawyer for you. BUSINESS PEOPLE 11 Deciphering your 401(k) plan. PERSONAL FINANCE 18 SUN-SENTINEL, MONDAY, JULY 3, 1995 WEEKLY BUSINESS IN THB HUNT As the state's business reputation improves, South Florida's executive search firms gain respect in an industry dominated by New York and Chicago giants. Please see cover story, Page 6. Cover Story Soul searching: 'Headhunting' firms match bodies with jobs South Florida's executive recruiting firms are benefiting from the region's emergence as a respected business center By JAY WEAVER Business Writer TWo, years ':a.go, Kloster Cruise Ltd., 'the venerable Norwegian line w.ith U.S. h.eadquarters in Coral Gables, was on a Titanic- like C'Gurse. Looking for a savior, Kloster's board {)f directors turned to exec- utive recruiter Bill Frank of Boca Raton to find' a corporate captain to turm it around. "Thoey told me, 'We need some- one to save the company,' " re- calls F'rank, 51, president 01 The Curti... Group. "I lelt like James Bond." His three months of detective- like work led him and Kloster Cruise to Adam Aron, senior vice president of marketing for Unit- ed Airlines. In July 1993, Frank negotiated Aron's $1 million-a- year compensation package, in- cludiDg performance bonuses, in a mo~tain-top cabin in Norway. His search firm received a re- tainer fee Irom Kloster equal to 30 percent of Aron's annual com- pensation package. The Kloster assignment was The Curtiss Group's break- through into the ranks 01 the so- called "$1 million Club" 01 head- hunters. The firm's searches, rellecting the South Florida mar- ket, are normally for executive positions in the $125,000 to $200,DOO range. The Curtiss Group, with annual revenues approaching $2 million, may be recognized as a regional boutique dwarled by such behe- moth New York and Chicago ex- ecutive search firms as Kornl Ferry International, Heidrick & Struggles and Spencer Stuart. But ~ the group, along with a handlul 01 ~ other local executive recruiters, .; has helped bring respectability to ~ South Florida's growirig llhead. ~ hunting" industry during the past >. decade. ~ Frank's lirm, lounded in 1980, 5 also bas had the henelit 01 being :> in the right place at the right time ~- as a nucleus of major companies ~ in South Florida - Irom W.R. .~ Grace &- Co. of Boca Raton to III Sensormatic Electronics of Deer- ~ lield Beach to Ryder System in ~ Miami - has helped diversify the ~ region's once tourism-dominated economy. CD Moreover, South Florida has Adam Aron was senior vice president of marketing for United Airlines before an executive recruiter tracked him down to be- come the prime candidate to bailout a sinking Kloster Cruise. gradually shed its dubious repu- three basic traits of a headhunter: tation as a cultural and economic sleuth, salesman and diplomat. backwater - despite its linger- "Will he know what this-is in re- ing problem as a crime capital. gard to?" Ueberr.oth's secretary "There's a little more respect asked Frank. "Yes, he will," lied for business in Florida" said Frank, without identifying him- John Ropes, an executive ~ecruit- self as an executive recruiter. er and consultant who opened his As soon as Ueberroth got on the Fort Lauderdale ollice 20 years line, Frank apologized lor seem- ago. "That's why it has started to ing duplicitous, Then he politely attract a lew 01 the major [execu- asked Ueberroth a lavor: Could tive search] players." you recommend some of the best . Uncovering the best and the and brightest executives in the brightest. travel, hotel, cruise and airline When Frank got the Kloster as- industries. Ueberroth happily signment, his first move was a obliged cold call to Peter Ueberroth the Alter that lirst call, Frank re- former commissioner of Major viewed hundreds of lips, referrals League Baseball who had made and resumes and flew off for doz. his fortune years ago in the travel ens of interviews in airports, res- industry. The exchange hrought out the CONTINUED ON NEXT PAGE Executive search firms do their work on a retainer or con- lingency basis. Major firms, such as Korn/Ferry Internation- al of New York and Heidrick & Struggles of Chicago, charge retainer fees. So do a handful of South Florida firms, including The Curtiss Group of Boca Raton. Here are the differences: RETAINER . Fee paid by employer during the search regardless of results - one- third ol.a posilion's annual compensation. . Salaries range from $50,000 and up. . Out-of-pocket expenses paid by client to search firrr. . Exclusive contract assignment with client. . Search firm not in business to get you a job . Provides comprehensive report on candidate: resume, references and interview . Presents three to five candidates on average to emp,oyer. . Confidenliality generally assumed. . Firm handles final negotiations and provides one-yeac guarantee over fee payment. CONTINGENCY . Negotiated fee contingent on placement of. employ.ee in company. . Salaries range from $20,000 to $100,000. But contingency firms han- dle placements with higher salaries. . Probably not exclusive contract assignment with client. . No out-of-pocket expenses paid by client to search 1irm. . Search firm wants to gel you hired. . Firm sends numerous candidates . Often forwards resume and brief references only. . Confidentiality could be at risk. . Potential conflicts between firms, or firms and clients. Source: Executive Recruiter News CONTINUED FROM PRECEDING PAGE taurants and hotels across the country. He also carefully studied Kloster's corporate culture. Although Aron was not on Ue- berroth's short list, Frank came across his name through a refer- ral. He instantly recognized that Aron's background - along with his Harvard MBA - fit Kloster's dire need for a chief executive with marketing and financial savvy. Frank courted Aron on the phone, in hotel lobbies I over din- ners, on visits to Miami and on a weekend trip to Norway to meet with Kloster's board of directors. "The whole experience was pretty clandestine," recalled Aron, 40, who has been credited with cost-cutting and marketing strategies that I)ave saved Kloster from bankruptcy. Kloster is the parent company of Norwe- gian Cruise Line and Royal Cruise Line. The Curtiss Group also found Kloster a chief financial officer and two members for its board of directors. Because few people followed the machinations of Kloster's in- ternal power shifts, it was fairly easy for The Curtiss Group to keep the searches under wraps. But sometimes there can be a search, especially one involving a CEO for a Fortune 500 company, that attracts the spotlight of Wall Street and the media. Consider the corporate soap opera in the executive chambers at W.R. Grace, the $5 billion chemicals and health care giant. This spring W.R. Grace's presi- dent and CEO, J.P. Bolduc, who was widely credited with improv- ing the company's bottom line, resigned for no apparent reason. It was soon revealed that he quit after a falling out with the com- pany's autocratic chairman, J. Peter Grace, Dv~r millions Df dol- lars in perks that Grace had re- ceived. Then the company un. veiled sexual har'assment allegatiDns against Bolduc, which he denied. Grace's bDard of direc- tors, embarrassed on Wall Street and challenged by investors, turned to a major New York ex- ecutive search firm to send a sig- nal that it was going to find top talent to replace Bolduc. Spencer Stuart, the No. 3- ranked search firm in the world delivered Albert Costello forme; CEO at American Cyana~id, who was availahle because he had lost his job following a hostile take- over. The search firm was able to control leaks of Costello's re- placement of Bolduc, until it was announced by Grace., a critical strategy that enabled the compa- ny to appear in control of its future. . Attracting top execs to South Florida_ Aron's move to Kloster and Costello's move to W.R. Grace =~ Executive searchers spanning the globe By JAY WEAVER BusinessWr;ler If they expect to survive, major-league exec uti ve recruiters better have their pass- ports up to date. "Everything is going glohal," says Peter Goossens, a partner with The Curtiss Group of Boca Ra ton. The Belgium native, who holds a Harvard MBA degree and speaks five languages, joined the group- in 1993 to coordinate its international division. The group, though small compared with New York search giants such as Korn/Fer- ry International, has enl<;lrged its glg,gal reach through membership in IIC. It is a partnership of independent search consul. tants with offices from Mexico to Germany to Australia. lIC's 20 offices exchange information on searches for executive positions worldwide. The partnership provides an "economy of scale" that makes it possihle for The Curtiss Group and other members to do searches in foreign markets dominated by Korn/Ferry. For South Florida executive recruiters, the search scene revolves around Miami and Latin America. Many U.S., Mexican and South American corporations are opening offices in Miami or abroad - and they need business executives to run them. Korn/Ferry, the largerst search firm in the world, opened a Miami office this spring . Address: 301 Yamato Road, Boca Raton . President: Bill Frank . Business: Executive search consulting firm . Number of employees: Six part ners and five support staff. . History: Frank, a former vice president 01 hu- man resources for a division of ITT in South Florida, founded his executive search firm in Mi- ami in 1981 when the "headhunting" industry was in its infancy locally. He moved his firm to Boca Raton in 1989. It has additional offices in Tampa and SaD Paolo, Brazil, with plans to open anolher office in'New York in Ihe fall. The firm also has affiliations with 20 oHie8s in South America and Europe through its membership in lie, a partnership qf internali~nal eonsultan~s: . Revenue: Estimaled $1.5 million to $2- million billings this year, compared with $1.5 million in 1994 and $1 millton in 1993 to coordinate its network of Latin American offices. "We're the only firm to have an office in every major Latin American market," said Tom Connelly, a Korn/Ferry partner. "Mi- ami completes that circle for us." Doing searches for multinational corpo- rations calls for different executive pro- files. South Florida search recruiters say executive candidates have to know more than a foreign language. "They have to understand a foreign cui. ture's nuances and try to be flexible," said Patrick Hidalgo, a partner with The Curtiss Group who has worked for several U.S. cor- porations in Latin America and Europe. Recently, the group recruited a human resources executive who was working for Chiquita Banana in Honduras -for - a major U.S. bank operating in Latin America. Even the federal government has called the group. A few years ago, the State De- partment hired it to find a banker to work with the Bolivian government to improve that country's banking system and stock exchange. show how some executives from "The largest That goal may take awhile to CamEra, a video surveillance the Northeast and Midwest are fulfill. Just consider recent pow. business in S1. Petersburg; a sen- more inclined to reloca te to South firms haven't er plays hy boards of directors at ior engineering officer; and an as- Florida as it - broadens its eco- totally discovered W.R. Grace and Sensormatic. sistant to Smith in human nomic base with expanding U.S. Florida yet, but a Sensormatic, the security.elec- resources. and Latin American tronies company, was forced to Smith said The Curtiss Group corporations. few have set up look this spring for another chief offers a perspective of South Also, top American executives outposts there. If operating officer when Michael Florida that outside headhunters Pardue announced his retirement no longer feel as loyal to their that's where the at the age of 45. He was being lack. "They know Florida for its employers in today's unpredict- action is, that's groomed' to replace Ronald As- tremendous pluses, but they know able corporate culture of down- its warts as well. They're better sizing, restructuring and where you'll see saf, the 59-year-old chairman .and able to sell Florida as a place." CEO of Sensormatic. The compa- mergers. more of them ny turned to Heidrick & Struggles That wasn't so easy in the 1970s and early '80s when Flori- One clear sign of the executive going next." of Chicago, the No. 2,ranked da's economy mostly revolved search industry's response to ~ James Kennedy, search firm worldwide, which around tourism and real estate. these developments is Korn/ had found Louis Gerstner for Ferry International's opening of Executive Recruiter IBM. Back in the 19705, executive a Miami office. It was established News search firms operating on a re- this spring to coordinate the New Whoever is selected to replace tainer basis barely existed. A few York firm's searches here and in Pardue is likely to become Sen- executive recruiters working on a Latin America. Korn/Ferry, the sormatic's next.CEO, so the com- contingency basis were more largest search firm in the world, edge the national hierarchy of ex- pany's board of directors wanted common. Contingency means a had revenue of about $200 million ecutive search but say South to send a clear message about the recruiter only gets paid.if a last year. Florida's -headhunting market is caliber of the search. search proves successful. about to enter the upper echelon. The Curtiss Group sees large ::;: "The largest firms haven't to- "They're looking for someone Florid~ compani~s grDwing mDre 0 tally discovered Florida yet, but One recruiter who. makes that with a $1 blllion company back- accustomed' to. the retainer sys- ~ claim is Tom Connelly, who -< a few have set up outposts there," ground, because that's where tern of payment, which requires OJ said James Kennedy, publisher of opened Korn/Ferry's office here we're rapidly heading," said Lar- up-front fees equal to one-third of ii Executiye Recruiter News, b;:tsed after working for five years in ex. ry Smith, director of human re- a new employee's annu'al S' in New Hampshire. "If that's ecutive search for A.T. Kearney, sources at Sensormatic. "They compensation. m where the action is, that's where the Chicago-based management [tbe directors] wanted a search That change in attitude, in !" <: you'll see more of them going consulting firm with an office in firm that had high visibility." turn, has opened more doors and g next." Miami. Before that stint, Connel- Although The Curtiss Group generated more revenue for The c. But Kennedy predicted the doz- ly had been an executive recruit- Curtiss Group and a handful of ~ er in Korn/Ferry's Washington, was not considered for the search ~ en Fortu-ne 500 corporations to replace Pardue, Sensormatic other headhunters. <- based in Florida will continue to D.C., office. But Frank, the firm's presi- c hired the Boca Raton firm for '" look to New York and Chicago "Historically, the big searches seyeral senior management dent, is still striving to land one of -'" search firms to fill top executive have gone to New York," Connel- positions. those CEO searches for a Fortune ~ positions because those firms ly said. "One of our goals is to 500 company. "It's no longer nec. "' '" project power. help this market mature to that Among them were: a president essary to. look to New York when Regional recruiters acknowl- leve!." for Sensormatic's recent venture, we're here." .... Ebe Bel'8lil MONDAY, JULY 10,1995 Dancing with headhunters he exec-utive with years of experi~ cnee in Latin America lands a dream job. A promotion. more money, new opportunities. Some people have all the luck. Better than luck, they've learned to dance. with recruiters. Whether you call them execu- ti ve search consultants or head- hunters, these folks may hold the keys to the job you want - but will never see advertised. Yet for, many of us, headhunt- ers seem to be mythic creatures. That's because good recruiters care about confidentiality. Client firms often insist on secrecy. Companies pay recruiters fat fees to llnd the right per- son for a job- typi- cally about one- third the annual sal- ary. And if someone already. holds the job, the company doesn't want to advertise that it's looking for a replacement. Often, recruiters talk to people who are already employed. "!t's our job to set the hook and see if we can't .get them at least to talk to us," says Bill Frank, president of Curtiss Group in iBoca Raton. Wben he got his first call from a -,headhunter, the executive with the Latin American experience had a good job - and no clue where the recruiter got his name. Eventually, he learned a '~oUeague from Mexico had recom- mended him. By then, he was on the circuit. 'The phone really started to ring in the last 18 months," he says. "Once you talk to one headhunter, .especially one from the big national firms, you'll get calls from the Atlanta office. the Los Angeles office, the Chicago of1ice." Y es.)'es, You love your work. But why turn down a job you haven't been offered? Those headhunters could come in handy when your firm reenginecrs ~'Ol1 out of a job. f...;.....l,......"......'....'....,........,l.;..........'....'........ ;t............' .' .r.. f,.' ~.... " f;,~ SUSANA BARCIELA Knowing how the industry plays can dramatically improve your odds. One valuable source is Rites or Passage at $/00.000+, by John Lucht ($29.95, The Viceroy Press). Know the basic types of headhunt- ers. "Retained" recruiters are paid up front, whether or not their candidate ends up in the position. "Contingency" recruiters are paid only if one of their candidates is hired. Either type can do good work. "You have to find the agency that reflects your personal taste," says Henrietta Goodman. president of Henrietta's Per- KNOW YOUR HEADHUNTERS Many professionals. even those who get calls from recruiters. don't know the much about these modern-day headhunters. Different recruiting and placement services work for different situations. . Contingency search firms. Often. they work with lower-level protessionals, supervisors and middle managers. They may submit numerous candidates for an opening, but get paid only if one of the candidates is hired. More than one search firm could be looking to fill the same position. . Retained search firms. They place hard-to-find specialists and executives at the highest salary levels, typically $75,000 and up. These firms are paid upfront. about one third of the annual compensa- tion for the specific position, regardless of results. KornlFerry International and A.T Kearney Executive Search are two national retained-search firms with offices in Miami. Other big players are Hedrick & Struggles and Spencer Stuart. . Outplacement firms. Usually. they're hired by a company that.s eliminating jobs. They aren't really recruiters. They help "outplaced" employees find new careers or jobs. (In one case, however. employees cut from a pharmaceutical company complained that the outplacement firm was steering them away from jobs at the company's competitors.) sonnel & Executive Search. a contin- gency firm in Miami. Keep in mind that the recruiter's objectives ,won't always mesh with yours. Some guidelines: . Your job level and salary matter. CEOs don't gct their jobs through employment agencies. Companies hire retained firms only to fill high-level managerial positions. "Most retained firms start at salary levels of $75,000 and up," Frank says, . . People in entry-level pOSItIOns or middle management will likely interest contingency recruiters. Henrietta's, for example, himdles jobs that pay $20,000 to $140,000. . How do you get into a recruiter's Rolodex'! Ideally, they call you. It means someone else has already vouched for you. But you can approach them. Contin- gency firms welcome ca!ldidates, though it will be tougher to mterest a retained recruiter. . HOll'ever you make contact, cheek out the recruiters. If one calls oulof the blue ask for a name and number, then call back. "Make s~re it's not your own personnel department," Goodman sa)'s. Ask if they have a specific job, or are just prospecting. If you've never heard ofthi-: firm, ;1sk for references. You can look them up in The Direetory ofExecuti.'e Recruiters. For a retained recruiter, YOll can also call the Association of Executive Search Consultants. (212) 949-9556. . Think about cnnfidentiality. If you're employed, you don't want any- one to know you're job hunting. Make sure a recruiter won't send your resume to companies that may know vou, or for whom you don't want to work. Ethical recruiters will agree to get your OK first. "That is where it gets dangerous, when people get your name and shop it around," says Sheila A vrin McLean, the association's president. . Recruiters _aren't )'our only option. Identifv companies and jobs you might like. Keep up with trade news. Personal contacts work best. "Getting a job is a job unto itself," Frank says. "It's the toughest job there is," ~ ~ ~ ~ ~ .~ ~ ~ ~ ~ .~ ~ ~ ~ ~ ~ ..;: ~ c ~ ",. ~ ~j~ o U..... ..1..:-;;: i:' = 0 ~ tlO <u 'B ~ ij-g<u ~ =<u~ ~o .: ~'O "3:g~ '" 0 ~ ~ ~.ct::: ~ .~ ~ ~ ~ ~ ~ ~ ~ ~ '0......... ~- , (.)"d =' tlO' '>,"~.c U'O 0 U'O 1_ U "'.&J. (.) = I!!.~ U ~ = tC =.... =.'" .'" - ~ ~ .~ B '" = - '0 c: ~ <u -5.... 0 B <u ..... .c ~ C),g.... <U '':: e ::: = U '0 U 0 = <U '" <V'::: '0 .g U ..... '" (.) 0 (.) IE - ~ ~ 0 = 0 So! ~ ~ c:: !l i>-::l e =........ 0 > U ~ ~.9 cf ~ -g ~ ~.g Cii <5 'fl .g,.5~- ~ g..5 l! ~~.5 g:6'~'8 ~ R U 'Ou <U <U <U U <U '" ... gjl <U '" tlO =0 _ - 'l:; <U S .... Q, (.) .5.... C) 1: ..... .... 8. .... U 'O.&J = ... .... e::l = '::l <U '" '" ~ tlO >< 0 ; 1~I~i]l]fji ~~]1~11]1!~.i~til <U '" '0 ....!.:; U "'.c 0 a..... ~ <U u.&J........ - 8 c 0 .:.c . c ~ = <U Q,e -= "3 ..E..... ~ s '" '" e E: 0 . f$ e -5 '0 3 :I: S,l = 5l.g..:: <Ue .5 ..... U tlO CO ~ (.)>'8 B C) "'....=~~o-<Ue .co~= 8..1ol u ~ ~:c 8 g,g a <U dl ~ ~ ~ .C) ..E '.cg ~ U Y <U''::: C).", >.~ B.> . . '" .. S'l (.) - = t-<..:: dl,Q !!! Q, S ~ U =.~ 0 Q,....&J ~ U <U C) u \:: &:l ~ ::s ~ go. '" ,Q .~.~ l: ~ '" . <U U ~ <u.&J U .... tlO 8 >..... ... e ~ ~ -5 <U ~'s = U '" (.) >. = g '0 i>- '" &:l Q, C.&J Q, = .... ~ ~ ~ (.) = = U <U U . e ~ ;;.. <U 8!S ~ ~ ij 8 C"~. ;I'~'C g'E >. -g tC ;g <U., . 'l:; a. g -5 ~ $:; e s.s eQ, c 0 s!5u eQ,.... 0 e Cii <u:a (.) (.) e<U <U 'l:; e -g ij ~..... e....:5 -5 ~ -fi ..... l:l. C)'~ <U '" '" Q, >...... <U '" - <U .\:: 0 e... '" ~ >. e 0 e U e 0 .c Cii .... Cii E ~ c 0 u.:!l lU Cii Q, Q,.... (.) e ~ >"\:: ~ ~~~~~~~~~~'O~s8~e~5~~~]~g~~8]~~~ -; .!i. ~ Q. ~ ~ ~ ~ s g ~ ij ~. U ~ ~.9o ~:6 gj ~ (.) ~ .... ~ ~ ~.5 <U = Cii .\:: e >< .c 0 tC .&J .c > = ~ ~ = O.c c c ~ U ~ C Sl.&J .c :; ~ s .... '"" Q, U 'U (.) (.) U <U '" .u <u.El .El 0 V,) '" ........ _ .&J .... .... '5 <U (.)... ~ "'" 1"0:=4.) ..QtU....Ocl.'i=......IIC/'J1 IC~.~~"Ol1.)I~I~I~I,tlJt).l. = =.... tlO tlO '" .9 .... ","'" ii o'S 5.....2P . tlO..... g ::l U U c -5 ~ -5:g u ::l O'Q.. ~ ~ <U 8 <U ~ ij s [; = C <U . Q, U ::l Q,''::: '" ~] '.... ~ = ~ 8 (.) ::l"8 E u ><'S .... ~ .... '" ~ .c -5 ~ ~ ~ ~ ~ ~ ~ a ~ ~ s ~ (.) g : ~ <U ~ ~ .9 <u.~..8 e..E .~ ~ go e .!. ~ .~ -5 (.) -.&J"" = > ~ Q,., <U ~ 1="" .... c >. ~ '" .c <U _ .. '" ... ::= .... ~ ... < .... ~ 8..... u '" C Q, Q, (,) \:: ~ '" = .s ::l'': ~ C <U 5 '" .... ~ ~ <U ~ O:E ::l U ~ . ~ e "a) C ~ 0 fo e 0 0 ; tlO.... Q, <U -5 0 u.....~ 0 ~ ::l ~ 5l ~ !l .""00 ~ -5 e ~.O' . ~ s .5 .g 1:& g ::l 0 ;: 't: ~.= E S ~ -5 eE u Q..e ..:s "'" '" Q,.c Cii g.5 .c = ::l..... >. '" >. <U tC Q, C" e (.): 8..... \:: ::l... '" = '" 0 U <U "':E u '" - .S 8.~ ~~u ~.a!l ~ ~~.5'~.s ~ e =!.~ etj.c.g.8 6:~ ~ ~]E-:-5;5 ~~ ~ .~ ~.~ ; ~ ~ ~ .~ :t ~ ~ ~ ~ ~ .~ i j i ~ ~ .g ~.~ : ; j i ;] ~ .~ ~ !~ ~ ~ '> U (.) ::l 0 Ie IE u = '" '" >. e 0 ~ <U :Q, .! >..c '0 Q, B >. t:l t-< ~ Cii tlO '" 0 (.) 5. If e tC .E! 0 U !.... e <U Cii.......- '" = , = (.) Q ~ e '" ~ a.l tlO = U 8 ... U = Q,'13 '" ~ ~ !II! ~ 8 ~ '" i>- ~ -So'~ ~ '; ~ ~..!S e e .E 8 U ~ -5 ,5 ~ 0.9 .~ ~ ~ =.9 cE 8. '0 .... g 11::...... ",.> ~ '" C <U :e ..IC 0 =,;;i!; Q, <U -5 '" III -5 e ~.,:: Q,.c 0 ~ '" ] '" = ~ (.) i":' i>- .....::: .... Cii .... Q, - g =., Q, . = ':l 0 . ~ '0 ~ '" (.) > := _ '" If: u ;; ;I .9 B ~ '" .9 '" e 'S ;: .9 o. ,<U ~.: fi COIl..... ~ ~ '" 'i (.) <U ~ B '':: -5 S '" >. U -5 'il Cii (.) U (.) '" 19 U 0 .&J..... = .&J ~ .... ;s - >.....= U -5 'B u .9.c. ~ ::l.... ~-5~.9tlO~~~~ls.,o-5~sooec~~(.)~~~~i~.E~~~5l~ ~~ o = = <U >. .....::.... "'" U '" ~ >. _ ~ .c t: ::l tlO ~ - 0 = U U i:'u. -5 .... 'c · a ij ~ > :.0 lS.:iS '" ~ e ~. tlO ij = lIl.c ~ ~ tlO = ~ .... = "'..:::.g c..E! ~ g [; ~.g ~ e ~ ~ J: 'i ~ 0: .~ ~ 8 'S .5 e ~.~ ~ 5. ~ ~ 'Ig ~ . = ij ..:s 8' e .9 ~ .s 'r;;' ~ ~ ~ .9 ~ ~ i' ~ >< ~~.s 8 ~ ~ ~ .5 .9 ~ 'B .; OU> ",g =~O~=~.&J~-5>.=u"'= ~ Q,lf:0=~ "'8'''''UU~::l'O -o-",<u ... Q, 0 ~u .... t:! .9 5 c (.) ~ >. '" 0 "':e .....\:: ~ .:. .... e I!!,., .::: tlO VI is ~ < = I:..E 0 U U ~ ,Q.9 ~=.~~~=~-t: Ciio", -5 ~~~ !3 'O[ '" '" e ~ . '0 ] U ~ -5 ":"13 '0 ~ ~ [; '" ..9 ~ = -; x. '"'" .... tlO 0 "'.= tlO <U ~ ~ .....C ij U c:: - ~ '" .; ~ ~ dl ..E .s ~:g'~'~;;;; e ~..E ..8 ~] ~ -: ~:a .9 .~!l ~~ ~&'" =::l",~o~",!~ "'o",,,,.,=.~<u ..s .... = .....0 '" 0.... - '" U l;:; ... 't "'.... -5 U 0 '0 '0 ~ ..!. .9 S tlO = U..c "" '0 C) 0 Q, (.) U (.) <U > U =.... U Q.. U '" '" :e oS S tlO.s..;'~ -5 .2P ~ ij ~:12l ~ g >..~ ~ S ~ .~ j OS ~ 11'\:: ~ ~ .; 8. 5 ij ~ ;....._= ~ ~ ..8 B.c ~ U III ~ ~ (.) oS Q, "'" S,l ~ '" &:l ...,::l ~.9 '" c:: '" e (.) <=l 0::S >. <U <U 112'~ 6. = ~ ~ S,l c ~ ~ >< ::l C 0 '0 ~.~ U '" e ~ .... .... ~ = '" ... <U ~ "'.... U - .... _ ~ >.... '" 8 0 ~ .2u ~ e < U '" ~ oJ is. ~ = -5 S,l U ~ >. = .... Q, '$ = u.g e ; ~ '" (.) = g iU.5 ~"~ ~ ~ a'':: 0 '0 .... '5 '0 g ~ = a. --: ~ i:'.S ~ -g ..... Q, Q,e ~ ~.~ ~ <U _.&J .... - U; Q = ~ '" = U ~........ U e '" e.... dl = - - 0 Q, '" .... .'::: R 0 > ..^!2P.llC P .... '" "d ~ ~ ::l > Cii ~ _'- = 0 Cii dl en.... e .9 CI:I ... ~ - CJ C1.) ......... = " as ......... c 0 ~.-.. CI:I.... rI) ~ o.~ ~ -- .... o E ~ '" ~ <U - ~.~ Fi ~ ~ vi 8. ~ ~ B 19 go.", Q Q, ~ ~ ~ >. E !3!5:12l ~u~.... >.;: ~'i ><~~. g = u~,g e go::l 8.-g~. 8 =]:::3; g gJfJ g. .9 .c ~ a..=., -5 ~ ~ ~ .e ..::: 8 ~ - .5 .9 8. ~ ~ '" >. '> ~ (.) .~ ~ =' l;:; .2, ~ '" . Q, '" ..... .c..... '" .... >. (.) I 0 .... U . >. = S,l "'.... Q, U , . tlO.... ~ ' >.- .- ~ .9 >. 0 ~ .u ~ ~ U tC e - 5..E Cii 8 = '" '5 ..s = Cii :E .!::l :s! t'S =..E a ~ "C ::;:: U .~ ~ c :fl ~ Q, -5 ....& 0 g. ~ ~ ~ ~ (.)..... .c ue'13 ~ Cii .~ 't;'~ tlO ;J > 0 ~ ... - >. U e ... (.) <=l c.... - 0.... : ,c u '0. Q, =::lu . o e a. -- :s! !i ~.... '" '" '" U fIt.9 >. -g ~..c: I '" ~ ~ '0 ~ .5 ~ '13:.i2 C" '0 8. e S ~ ,., ~ ~ ~ ~ Cii ~ -5 '" vi -5 fIt.~ a. B ~ ~ ~ l! tC ~ ~ Q (.)~'E o.~,g ~ e " <=l .. -.... '0 ......::.... = ~.... I"" dl '" U Sl u '" ~ ... 0 -5 C C tlO ~ U 0 Q,:;.... ~ ....0 .... B <U 0 '" '" ~ ~ > -5 c: > '0 '" '" - '" <U 0 ~ ] i l-g ~ [~ 8.:; >- ~ C) ] ~ ~ 'l:; !5'~ ~ .~ Q3 ~ ij.~ ~ ~ ~] ~ ~ = 6- C >< '" u ~ <U <U iuS !l = ~ -' ~ '" > ~ - a. ~ ~ Q,..::: e ~ .9 5 :g '3 ~ ~ ~ ~ ~ ] ~ ~ 0 ~ 5l ~.5 ~ ~ ~ ~ ~ ~ .; ~ -: 'g l ~ ~ ~ ~.~ i 8. .~ .~ o ::l - ::l <U . (.) e 8 '8 >.s.&J .... .... ~ U g >< U e .9 ~ .:: (.) ..... "3 <U tlO '0 c: ~'l:;e,~1eQ,::li""'~"''''~ijj~!-g~~t,., ~~~.~1~~1es~~8. '" ~ Q,~ .9 8 ~ 1.c .!.= (.) ...r'S's ::l., S,l -:,Q .... - '0 ~ ..c: ';l !;J u"3 ~ e e .>']'.i:l go~~~lE e ~.&J ~.3.B ~.= i~~ ~1~~ g~ SfoS ~ u-5 e U ~ 8 ]&B. ~ "'o~ i5.Oc1lQ, "'~ esi5:gOll Q,'" .....~.c-5"8!l-5u z ~ ~ ~ j j ~.I ~ il'~ i'~ ~Su ~ ~ j ~ ~ i 'r~ ii ~ 'll~ $ ~ ~ i i .r~l ~ - := S u '2 1:: ~ J:' a ~::l ~ ~ > U (.) (.) F (.) ~ - - - .... e - 0.... = ,........ .g ~ ~ tEl ~ :;.;; ~ 8 8. as e e B '0 ~ S ~'8. '.6 ~ :a .s ~ ~ tlO.5 ~ 3 8 ~ ~rfJ -rfJ [ 9 LL Upper-level executives expect top dollar, but keep a clear head when negotiating <0 CJ') CJ') In today's corporate world, compa- nies must expect to pay top dollar for upper-level executives. More is demanded of these talented execu- tives in that results - which trans- late into profits - are expected quickly. New presidents, CEOs, CFOs and others must make a positive impact virtually immediately, and for that they are being paid handsomely. But firms must keep in mind that o ~ :2: HIRING EXEOUTIVES William Frank '" C() <::: .... '" ;;. a U they can't "break the bank" or mort- gage their futures by paying a salary or giving benefits that disrupt the company. In other words, every job has a value within a specific corpo- rate setting. In some cases, a com- pensation plan can be altered at the top to attract the best. But in most cases, guidelines must be maintained when negotiations for top talent get under way. Those making these decisions should not become enamored with a candidate and "give away the compa- ny." Like all business decisions, this should also be made with a clear head with emotions left at the door. If a pay scale doesn't meet the needs of a candidate, move on to the next. Many talented executives can be con- vinced to make a move - if the price is right for them. Firms should also be aware that today they are frequently seeking versatile executives. The days when firms could divide responsibilities among several senior managers are over. Previously, it was common to have managers who were responsible for the wide gamut of responsibili- ties. Today's successful executives have financial, marketing, motiva- tional and leadership skills. Granted, upper-level jobs paying into the high six figures and beyond are rare. These positions are not filled by people seeking jobs. They are filled by happily employed and well-compensated individuals who are not :l.!!xiQllstQ Il1()yeQrl,-'I'he~~'H~__ --------rriaiViduals must be persuaded to make a move. The incentives are more power, increased salary, and growth potential in these areas. Often, people leave upper-level jobs for more power. For example, a senior vice president of one firm may be blocked because the CEO is excelling and is approximately the same age. Consequently, the only way to become No.1 is to move on. It is a logical step. Companies that hope to attract this top talent must be willing to pay for it in more ways than just salary. Here are some tips: Be prepared to offer a contract with provisions for a take-over. Can- didates for these positions realize that the 1990s is the era of "merger mania." They know the company '" '" '" ::: -0:; ;:,: i:Q '" ;;. '0:; ::: '" ...::: ~ ~ d ..... '" ~ Q ::: ;:,: a U , ~ '" ~ a: w CO :2: ~ Z <0 w :2: ~ ...J o > pledged to independence today could agree to sell tomorrow-if the price is right. These people will want the classic golden parachute. However, paying for this soft landing can be expensive. In the $500,000 and up salary range most executives are seeking at least one year's salary plus benefits for three years. These candidates will also want provisions that allow for "diminutidn of authority." A senior vice president or chief financial officer can be ren- dered useless based on subtle changes in the job description. Many companies take away authority in "unofficial" ways and use this as a reason to "fire" or relegate a person to a lower level job. This frequently happens during mergers and acquisi- tions. The candidate will demand a very detailed provision in hislher contract that specifies responsibili- ties and authority. If this changes during the course of employment, a lucrative "buy-out" will go into effect. Most senior level executives antici- pate a 20 to 30 percent salarylbene- fits increase. In addition, stock options are perhaps the single most important factor. In a private compa- ny, it is common to offer "phantom" stock or significant bonuses based on performance. However, many companies are changing their approach to offering stock. In many cases, a mediocre return in a stock can result in huge payoffs for the executive. Several companies have put a new wrinkle into the stock option equation that involves purchasing stock at prices that ascend over time. Executives then profit only to the degree that their stock price clears a certain hur- dle. Each set of options has an expi- ration date. One company also requires top executives to purchase stock at market value with a full- recourse, interest-bearing loan from the company. Companies should expect to offer employment contracts for president, chief executive officer, chief financial officer, chief human resource execu- tive and legal counsel. These con- tracts should be specific about what will constitute termination. One big mistake is to quote an annual salary. The contract should quote a monthly salary in the event of immediate ter- __ _mination~____ --___-~_____ ~~-- Another major mistake is using one set of criteria for the hiring pro- cess. For example, a firm may hire someone based only on leadership skills and presentation but the indi- vidual may be weak on finances. Nonetheless, negotiations must be made in the spirit of cooperation. Keep in mind that the company is making a considerable commitment by hiring an individual charged with the task of leading it into the future. By the same token, the executive is taking a risk by leaving a comfort- able job for a new challenge. 0 William Frank is president of The Curtiss Group, a Boca Raton-based executive searchfirm with offices in Miami, New York, Tampa, Fort Lauderdale and Sao Paulo, Brazil. G.) = -. G.) I = =' CD CJ) CJ) ,---- LD C\J a:: W OJ :2: w > o z . > <I: a z o :E . <C o a:: o ~ LL I ~ :=) o (f) Board memberships no longer ceremonial By WILLIAM FRANK THE CURTISS GROUP Until recently, it was not unusual for board meetings of public companies to resemble social gatherings of close acquaintances. To a large degree, memberships on boards were ceremonial and granted as favors to friends or business associates. Many times, business colleagues would literally trade board positions. In other words, "I'll put you on my board in return for membership on yours." These old-time practices placed little premium on diversification of member- ship, which, in turn, led to a board with- out direction and executives who fre- quently weren't accountable to shareholders. But today, we're seeing an increasing sophisti- cation in the methods for find- ing candidates, and this is a direct result of a movement among shareholders to hold board members accountable for company and stock perfor- mance. In recent years, we have seen Frank shareholders take a greater role in the direction of their company. Witness this recent comment made by former Scott Paper president and CEO Al Dunlap, now chairman of Fort Lauderdale-based Sunbeam Corp.: "The one fact of life that is grossly overlooked is that the shareholders own the compa- ny." Shareholders look to their board and hold directors accountable. This presents a double-edged sword. One is that boards are becoming increasingly more respon- sive to shareholders and are extremely tuned in to company performance. However, because of this increased responsibility, many candidates are reluc- tant to serve because of the potentiallia- bility associated with serving. With this increased responsibility and complexities come increasing difficulty in finding the right candidates to lead public companies into the future. When searching for these individuals, corporate executives should keep in mind the fol- 10wiltg-gHidelines~-.~.-- - . Board members must always main- tain their objectivity when dealing with executives of the company. Many think the major role of the board is to hire, fire and evaluate the performance of the pres- ident and chief executive officer. Consequently, it is important that these high-level executives not be directly involved with the selection process of a board member. In short, it would be diffi- cult for a board member nominated by a CEO to fire or censure a friend or busi- ness colleague. Basically, a director must always maintain objectivity in dealing f....c. A" ~ COMMENTARY with performance issues of upper-level management . Boards must plan for management succession. It is inevitable and can be the result of a firing, retirement or merger. Directors must take succession planning seriously to insure a smooth transition to a new leader. They must have formal evaluation and succession procession plans, understand the company and its strategy and participate in the develop- ment of that strategy and be prepared to defend it . In this age of acquisitions, directors must keep up with the ever- changing takeover law. They must be ready to render a judg- ment at any moment on a man- agement proposal to acquire, be acquired or to fight a corporate raider. . Today's shareholders are becoming increasingly more vocal and active in the direction of their company. Consequently, directors must take investor rela- tions programs seriously. Directors must understand investor relations capabilities and be amenable and responsive to share- holders. . Finally, directors must never forget that they are accountable to shareholders. They must continually evaluate their roles, responsibilities and business prac- tices. Today, many boards have devel- oped performance evaluation criteria to make sure that all directors are fulfilling their roles. One of the key elements of this evaluation is making sure the boards have the proper diversification. The profile of a board should reflect broadbased expertise that includes accounting, sales and marketing, man- agement, product development and other disciplines. Board membership in the 1990s has certainly become more of a "job" as opposed to a ceremonial position. This is the result of close shareholder scrutiny and their increasing involvement in the company.--- - - ~-_.~. --_...~.__.. .... ~_._-._---- The criteria for identifying board mem- bers have become much more stringent because of these growing responsibilities. It is clear that the good-old-boy network is becoming a thing of the past. Objectivity in the selection process is a must to insure performance, accountabil- ity and focus. William Frank is president and founder of The Curtiss Group, a Boca Raton- based executive search firm. The Curtiss Group has conducted numerous searches for directors of public companies.