| April 17, 2001 Hunt-Scanlon Report Finds Headhunter Assignment Size Grew Six Percent in 2000 Stamford, CT, April 17, 2001 — An overall rise in executive cash compensation was one of the fundamental ingredients fueling the U.S. search industry's growth in 2000, reports a new study from executive recruiting market research firm Hunt-Scanlon Advisors. According to Hunt-Scanlon, the average compensation level per search assignment was $233,000 in 2000, up six percent from $220,000 in 1999. These findings are based on data collected from 28 leading U.S. executive recruiters. Search firms participating in the Hunt-Scanlon analysis ranged from global recruiters with multiple industry practices to boutique firms working in one or two areas of specialization. The rise in executive cash compensation was driven by two factors. First, talent-starved start-up companies in 2000 were willing to pay a premium for seasoned executives from Old Economy companies. This demand led to a surge in defensive strategy counter-offers and retention packages at Old Economy companies. Second, a volatile stock market triggered an upward trend in guaranteed cash bonuses for skittish executives concerned about the decreasing value of their stock options. "The rise in executive compensation is a double edge sword for the search industry," said Hunt-Scanlon chief market strategist Brian P. Lee. "Although rising compensation levels contribute to a firm's top line revenue growth, they also drive the case for clients demanding fee caps." These fee caps, report Hunt-Scanlon, could contribute to an industry-wide slow down in top line growth at search firms nationwide. Hunt-Scanlon's in-depth analysis of the U.S. and global executive search markets can be found in the Hunt-Scanlon State of the Executive Search Industry report scheduled for release in May. ABOUT HUNT-SCANLON Hunt-Scanlon Corporation is a leading market research firm and online data provider to the executive recruiting industry. The firm publishes daily real time newswires, three monthly newsletters (Executive Search Review, Online Recruiting Strategist and Diversity Monitor), as well as directories of executive recruiters and senior HR executives. The company's flagship recruitment portal for senior executives, hunt-scanlon.com, is a growing online marketplace connecting buyers and sellers of recruiting services worldwide. Within this portal, Hunt-Scanlon operates four leading web sites, including executiveselect.com, recruiterlink.com, diversityonline.com and leadersonthemove.com. A separate operating unit, Hunt-Scanlon Advisors, produces executive-level conferences and in-depth market intelligence reports on human capital and technology issues. Contact Information:
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