Korn/Ferry International is separating the position of chairman and CEO into two jobs, the company said Thursday, April 26. Gary Burnison, currently CFO and COO, steps into the chief executive position effective July 1. The company’s current CEO and chairman, Paul Reilly will continue as chairman of the board.
Korn/Ferry is best known as an executive recruitment firm, but it also has expanded into the broader “talent management solutions” market, including online middle management recruitment with its Futurestep business, and coaching and executive development.
Working with Burnison, Reilly will “focus on market and strategic activities” to continue the business’ growth, the company said in its announcement.
Reilly joined Korn/Ferry as chairman and CEO in July 2001. Burnison joined the company in 2002 as CFO and was promoted to COO in 2003. Before joining Korn/Ferry, he was principal and CFO of Guidance Solutions, a consulting firm.
Under Reilly’s leadership, Korn/Ferry said, fee revenue has grown 89 percent during the past five years and its market capitalization has improved by more than $700 million.
The company also said that for the fourth quarter of the 2007 fiscal year, it will record a net non-recurring pretax charge of $4.5 million, “reflecting the combined effect of contract changes and a credit adjustment to a previously recorded lease restructuring reserve.” It said it expects its fourth-quarter earnings per share to be at the high end of its previously released guidance, excluding the one-time charge.