``Vision'' is Most Vital Attribute of a CEO; Execs Prefer Cash over Equity in Compensation.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--July 16, 2003

-- Global Survey of Nearly 3,000 Executives Reveals Attitudes on

Leadership Traits, Compensation and Relocation --

Nearly half of the executives polled ranked "having a clear vision" as the most important attribute of a leader, and 38% cited "the ability to motivate" as the key skill for a CEO according to the results released today of an Executive Quiz conducted by Korn/Ferry International (NYSE:KFY), the world's leading provider of recruitment solutions. Only 17% selected "trustworthiness" as most important.

"Professionals want to work for a leader who has a strong vision of the company's future and inspires others," said Paul C. Reilly, Chairman and CEO of Korn/Ferry International. "Executives also understand that the ability to motivate an entire workforce is critical. It's the CEO that possesses both the right vision as well as the skill to motivate that will play a major role in the organization's overall success. It's not that trustworthiness isn't important, it's just that most people believe that their CEO is trustworthy and acts ethically."

In the compensation category, 55% of respondents prefer more cash (salary and bonus) and less equity and 18% stated that they have no preference in how their compensation package is structured. Additionally, more than half believe they are either slightly or grossly underpaid.

Executives were also surveyed on risk aversion with regard to relocation. Among four cities surveyed, Beijing ranked the highest as the city that professionals would NOT consider relocating to.

"The outbreak of SARS has temporarily impacted public opinion. Despite this current challenge however, China is one of the fastest growing economies in the world. Along with India, China will be home to nearly half the world's population by the middle of the century. Professional opportunities will be tremendous," added Reilly.

Korn/Ferry International Executive Quiz

What type of compensation package interests you more?
  (Number of Executives: 2646)

Executives have responded as follows:

More cash (salary and bonus) with
  smaller variable compensation
  (equity).                                            55%

More variable compensation (equity)
  with lower cash.                                     26%

I have no preference in how my overall
  compensation package is structured.                  18%


In your opinion which of these traits is the most important in a
  leader? (Number of Executives: 2975)

Executives have responded as follows:

Years of relevant experience                            2%

The ability to motivate                                38%

Trustworthiness                                        17%

Having a clear vision                                  43%


Based on your current or most recent position, which of these best
  describes how you feel? (Number of Executives: 2582)

Executives have responded as follows:

I am adequately compensated.                           39%

I am slightly overpaid.                                 3%

I am grossly overpaid.                                  1%

I am slightly underpaid.                               40%

I am grossly underpaid.                                16%


When hiring an executive, which of the following is most critical to
  you? (Number of Executives: 2281)

Executives have responded as follows:

Appropriate fit to the position                        38%

Appropriate fit to the organizational culture          58%

I do not make hiring decisions.                         4%


Which of the following cities would you NOT consider relocating to:
  (Number of Executives: 2864)

Executives have responded as follows:

New York, NY                                            3%

London, England                                         1%

Beijing, China                                         27%

Mexico City, Mexico                                    19%

I would not consider relocating anywhere
  at this time.                                         9%

I would be willing to relocate to any of
  these cities for the right opportunity.              42%


Do you believe that the latest U.S. Federal Reserve rate cut will help
  solidify an economic recovery? (Number of Executives: 1235)

Executives have responded as follows:

I strongly believe                                      7%

I somewhat believe                                     47%

I somewhat do not believe                              27%

I strongly do not believe                              15%

I do not know                                           4%

About the Korn/Ferry Executive Quiz

The Executive Quiz is based on a global survey of executives registered with ekornferry.com. Respondents, covering nearly every industry, from 60 countries participated in the Executive Quiz over a five week period from May 27, 2003 to June 29, 2003.

About Korn/Ferry International

Korn/Ferry International (NYSE:KFY), with over 70 offices in 36 countries, is the world's leading provider of recruitment solutions. Based in Los Angeles, the firm works closely with clients worldwide to deliver customized executive search, management assessment and mid-level search services, including the identification of CEOs, COOs, CFOs, board members and other senior-level executives; the formal evaluation of senior management teams; and the recruitment of middle managers through its Futurestep subsidiary. For more information, visit the Korn/Ferry International Web site at www.kornferry.com or the Futurestep Web site www.futurestep.com.