Korn Ferry

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Korn Ferry
Public
Traded asNYSEKFY
S&P 600 Component
IndustryProfessional services
FoundedNovember 14, 1969; 49 years ago (1969-11-14)
FounderLester Korn
Richard Ferry
Headquarters1900 Avenue of the Stars,
Key people
Gary Burnison (CEO)[1]
ProductsExecutive search, Management Consulting, Outsourcing
RevenueIncrease US $1.819 billion (FY18)[2]
Increase US $133.779 million (FY18)[3]
Number of employees
7,500 (2018)[4]
Websitewww.kornferry.com

Korn Ferry is a management consulting firm headquartered in Los Angeles, California. It was founded in 1969 and as of 2018, operates in 106 offices in 52 countries and employs 7,643 people worldwide[5]. Korn Ferry trades through three business segments: Korn Ferry Executive Search, Korn Ferry Advisory and Korn Ferry RPO and Professional Search.[5]

History[edit]

Korn Ferry was founded in 1969 by Lester Korn and Richard Ferry. The two first met in 1962, when they worked for Los Angeles accounting firm Peat, Marwick, Mitchell.[6]

In 1972 the firm went public with an initial public offering (IPO), but in 1974 reacquired all outstanding shares to become private again.[7] In 1973 Korn Ferry formed Tokyo, Japan-based Korn Ferry International Japan in 1973.[8] With the opening in 1975 of Korn Ferry International Singapore the company had 41 offices in 20 countries.[9] In 1977 they acquired the Mexico City firm Hazzard & Associados. In 1978 they opened offices in Malaysia[10] and Hong Kong, and acquired the UK firm John Stork. In 1979 they acquired Australian-based Guy Pease Associates.[11]

In 1981 the company became the largest executive search firm in the world, with Lester Korn serving as Chairman and CEO.[12] In 1987 the firm opened an office in Bangkok, Thailand. They now had 37 offices in fifteen countries servicing around 1,250 client corporations and organizations.[13] In 1989, the firm's revenues exceeded $100 million for the first time.[14]

On May 10, 1991 Lester Korn retired as chairman, with Richard Ferry, the president and CEO, assuming the additional role of chairman.[14] Following this, the firm initiated several office closures.[15] In 1992 Korn Ferry implemented a video-conferencing system for screening job candidates.[16] In 1993, the firm acquired Carre Orban and Partners and merged its European operations into a firm branded in Europe as Korn/Ferry Carre/Orban International.[17] The firm opened their first offices in India (1994), China (1995), Indonesia (1996), and South Korea (1998).[18]

In August 1998,[19] Korn Ferry partnered with The Wall Street Journal to start Futurestep.com, aimed at the middle management level.[20][21] By 2001 Futurestep had been rolled out to 22 countries with worldwide losses of $60 million since beginning in May 1998 with $23M in the nine months to Jan 31, 2001.[22]

In 1999 Korn Ferry acquired the German firm Hofman Herbold and also the Australian firm Amrop International.[23] In 2000 acquiring the London-based PA Consulting Group for an estimated $35M. In 2000 they purchased Boston-based financial services search firm Westgate Group,[24] and Canada-based Pratzer & Partners Inc.[25]

During an executive-search industry contraction, Korn Ferry's 2001 redundancies were "more dramatic than those of competitors who aren't publicly traded" such as Spencer Stuart and Russell Reynolds Associates. This was reported and attributed to having "expanded so heavily during the technology boom" coupled with Korn Ferry's new CEO Paul C. Reilly choosing to "send a message to shareholders."[26]

In 2001 Korn Ferry purchased Levy Kerson, Helstrom Turner & Associates, and Pearson, Caldwell, and Farnworth.[27] In 2005 the firm moved its regional head office to Shanghai, China[18] , and had a total of 73 offices in forty countries. In 2006 Korn Ferry acquired leadership development tools firm Lominger Limited of Golden Valley for $24M.[1]

In 2006 the company acquired Lominger International, and in 2007 Gary Burnison became the company’s new CEO.[1][28][29] That year the company acquired LeaderSource in 2007.[28] In 2008 they acquired Lore International Institute, and in June 2009, they acquired the London-based Whitehead Mann.[30] In 2010 they acquired Sensa Solutions, in 2013 Korn Ferry completed its acquisition of Minneapolis-based PDI Ninth House for $80M[31] ; in 2015 they acquired Pivot Leadership[32] and Hay Group[33].

In 2018 Korn Ferry took a one-time, non-cash intangible asset impairment charge of $106 million, or $79 million on an after-tax basis, to account for rebranding its entire business simply as "Korn Ferry," and sunsetting all the Company's sub-brands, including Futurestep, Hay Group and Lominger.[34]

Litigation[edit]

In 2005 Korn Ferry accused one of its former star recruiters, David Nosal, of stealing confidential client data to establish his own competing firm.[35] In 2008 Nosal was charged under the Computer Fraud and Abuse Act (CFAA) noting that he "acted "without authorization" in violation of the law."[36] In 2016 the US 9th Circuit Court of Appeals decided United States v Nosal, ruling that Nosal's "activity now constitutes a criminal act, under the Computer Fraud and Abuse Act (CFAA)."[36] In 2018 Nosal was ordered to prison. [37]

Sponsorship[edit]

On June 19, 2019, the PGA Tour and Korn Ferry announced they have entered a 10-year agreement making Korn Ferry the Umbrella Sponsor of the newly named Korn Ferry Tour. In replacing Web.com, Korn Ferry's sponsorship extends through the 2028 season.[38] The Korn Ferry Tour will continue to award PGA Tour membership to the Tour's 50 leading players, including the top 25 from the Regular Season points list and the top 25 from the three-event Korn Ferry Tour Finals points list.[39]

References[edit]

  1. ^ a b c Lublin, Joann S. (April 2, 2015). "Suit Alleges Korn/Ferry Fired Official In Retaliation" (Eastern edition). New York, N.Y., United States: Wall Street Journal. p. B3. Retrieved December 8, 2016.
  2. ^ "Korn/Ferry International Revenue & Earnings Per Share (EPS)".
  3. ^ "Korn/Ferry International (KFY)".
  4. ^ McCann, David (September 24, 2015). "Korn Ferry, Hay Group Join Forces". United States: CFO.com. Argyle Executive Forum. Retrieved December 9, 2016.
  5. ^ a b "SEC Filing | Korn Ferry". ir.kornferry.com. Retrieved May 16, 2019.
  6. ^ Hilder, David B. (July 16, 1987). "Headhunter Gets Recruited for U.N. Post" (Eastern edition). New York, N.Y., United States: Wall Street Journal. p. N/A. Retrieved December 8, 2016.
  7. ^ Lublin, Joann S. (May 7, 1998). "Korn/Ferry Mulls IPO for Search Firm As a Way to Remain Industry Leader" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. B20. Retrieved December 12, 2016.
  8. ^ Kikuchiz, Seiichi (July 28, 1981). "Japanese Enterprise Also Begin to Make Use of Executive Search Firms". Japan: The Japan Economic Journal. The Nihon Keizai Shimbun. p. 15.
  9. ^ Adversario, Patricia (May 18, 1992). "More S'pore Execs Becoming Expatriate Workers in Region". Singapore: The Straits Times.
  10. ^ "Korn/Ferry Delighted With Appointment". Malaysia: The New Straits Times Press (M) Bhd. Media Prima. January 14, 1997.
  11. ^ Jenn, Nancy Garrison (April 2005). Headhunters and How to Use Them: A Guide for Organisations and Individuals. ISBN 9781861977342.
  12. ^ Barmash, Isadore (April 21, 1981). "Talking Business with Nesbit of Korn/Ferry". New York Times. New York, N.Y., United States. Retrieved December 9, 2016.
  13. ^ Stewart D. Friedman (January 1987). Leadership Succession. Transaction Publishers. pp. 146–. ISBN 978-0-88738-162-1.
  14. ^ a b "Korn/Ferry's Chief Adds Chairman Post" (Eastern edition). New York, N.Y., United States: Wall Street Journal. May 13, 1991. p. B10.
  15. ^ Lublin, Joann S. (August 2, 1991). "Headhunters Seek Solution to Slowdown by Adding Services, Expanding Abroad" (Eastern edition). New York, N.Y., United States: Wall Street Journal. p. B1.
  16. ^ Lublin, Joann S. (October 13, 1992). "Search Firm Puts Prospects in Focus" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. B1.
  17. ^ The Economist, and Nancy Garrison Jenn. Headhunters and How to Use Them: A Guide for Organisations and Individuals. London, England : Profile Books. [1]
  18. ^ a b Jonathan V. Beaverstock; James R. Faulconbridge; Sarah J.E. Hall (September 19, 2014). The Globalization of Executive Search: Professional Services Strategy and Dynamics in the Contemporary World. Routledge. pp. 79–80, 243, 51, 189. ISBN 978-1-317-67535-8.
  19. ^ Blake, Wendy E. (October 25, 1999). "Big Recruiters Set Sites on High-Tech Job Hoppers". 15 (43). Crain's New York Business. p. 36. 2p.
  20. ^ Richtel, Matt (June 8, 1998). "A New Executive-Recruiting Service on the Web". New York Times (Business/Financial Desk). New York, N.Y., United States. p. D6. Retrieved December 9, 2016.
  21. ^ "Wall Street Journal, Korn/Ferry Form Job-Search Joint Venture" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. June 8, 1998. p. B11. Retrieved December 12, 2016.
  22. ^ Teo, Anna (May 15, 2001). "Internet Recruitment Does Not Work : Russell Reynolds". Singapore: The Business Times Singapore. p. 1.
  23. ^ Boreham, Tim (June 24, 1999). "Korn Ferry Headhunts Amrop Arm" (Finance). The Australian. p. 22.
  24. ^ "Korn/Ferry to buy Westgate Group". Atlanta, United States: The Atlanta Journal and Constitution. June 14, 2000. p. 2E.
  25. ^ "Korn/Ferry International" (Appointment Notices-Adv't). The Globe and Mail (Canada). January 19, 2011. p. B10.
  26. ^ Tkacik, Maureen (August 21, 2001). "Korn/Ferry to Slash Work Force By 20% in New Round of Job" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. A4. Retrieved December 12, 2016.
  27. ^ Beaverstock, Jonathan V.; Faulconbridge, James R.; Hall, Sarah J. E. (September 19, 2014). The Globalization of Executive Search: Professional Services Strategy and Dynamics in the Contemporary World. ISBN 9781317675358.
  28. ^ a b St. Anthony, Neal (January 10, 2007). "Korn/Ferry International to acquire LeaderSource; The purchase, in addition to one last year of Lominger International, broadens Korn/Ferry's areas of business" (Metro Edition). Star Tribune (Minneapolis, MN).
  29. ^ Weber, Lauren (December 9, 2014). "Here's What Boards Want in Executives" (Eastern edition). New York, N.Y., United States: Wall Street Journal. p. B5. Retrieved December 20, 2016.
  30. ^ Andrews, Amanda (June 12, 2009). "Recruitment firm Korn/Ferry acquires British headhunter Whitehead Mann". The Telegraph. Retrieved December 7, 2016.
  31. ^ St. Anthony, Neal (July 28, 2014). "Korn Ferry Division Grows in Mpls" (Metro Edition). Star Tribune (Minneapolis, MN).
  32. ^ https://www.bizjournals.com/losangeles/news/2015/02/13/korn-ferry-to-buy-pivot-leadership.html
  33. ^ "Korn Ferry to buy Hay Group for $452m". Financial Times. Retrieved April 25, 2019.
  34. ^ Smith, Rich. "Why Korn/Ferry Stock Just Jumped 13%". The Motley Fool. Retrieved July 26, 2018.
  35. ^ Lublin, Joann S. (August 16, 2005). "A Company and Its Secrets; Korn/Ferry Alleges Theft Of Confidential Client Data By A Former Star Recruiter" (Eastern edition). New York, N.Y., United States: Wall Street Journal. Dow Jones & Company Inc. p. B1. Retrieved December 12, 2016.
  36. ^ a b Smith, Nigel M (July 8, 2016). "Court Ruling Could Make Sharing Netflix and Spotify Passwords a Federal crime". London: The Guardian. Guardian News and Media Limited. Retrieved December 19, 2016.
  37. ^ "Former Korn Ferry exec David Nosal in prison after lengthy legal fight". www2.staffingindustry.com. Retrieved May 16, 2019.
  38. ^ Hennessey, Stephen. "Korn Ferry replaces Web.com as the umbrella sponsor of the PGA Tour's developmental tour". Golf Digest. Retrieved June 24, 2019.
  39. ^ "PGA Tour announces Korn Ferry as umbrella sponsor of newly named Korn Ferry Tour". PGA Tour. Retrieved June 24, 2019.

External links[edit]