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ALL MAJOR GLOBAL BUSINESS REGIONS REPORT 1992 INCREASE IN EXECUTIVE HIRING; LATIN AMERICA POSTS STRONGEST GAIN -- U.S. UP 4 PERCENT

 NEW YORK, Feb. 16 /PRNewswire/ -- For the first time in five years, all major global business regions reported an increased demand for top executive talent from the year before. The global recession in senior executive demand ended in the last half of 1992, according to the 84th International Index of Executive Vacancies, a quarterly report compiled by Korn/Ferry International.
 International Index of Executive Demand
 Percentage Change 1991 to 1992
 U.S. 4 percent
 Europe 7 percent
 Asia 9 percent
 Latin America 11 percent
 Executive demanded in the United States in 1992 increased 4 percent over the previous year. Europe, which had been battered by weak markets and political uncertainty in 1992, posted a 7 percent gain in demand in 1992. Despite reduced export demand and economic difficulties facing many companies on the Pacific Rim, Asian corporations sought to hire 9 percent more top managers in 1992 than the year before.
 The biggest gain in 1992 was in Latin America, where the economy is being fueled by rapid growth and widespread optimism in many countries. Economic liberalization and privatization of state-owned industries has caused a surge in investment and executive job creation.
 "Regional business climates can, and often do, differ greatly. In each of the major business regions tracked, 1992 demand for senior executive talent increased, each for somewhat different reasons," said Richard M. Ferry, president and CEO. "In the U.S., low interest rates encouraged manufacturers to invest and expand early in the year and the presidential election resulted in a burst of consumer confidence and spending in the last quarter."
 Europe's 7 percent increase in executive demand reflected the softness of the 1991 senior management market as much as it did the improvement in the Western European economy. Asia continued to maintain the long-term perspective, which has served them so well. Despite a punishing recession and a continuing shakeout in the Japanese financial markets, senior executive hiring increased 9 percent in 1992.
 "The biggest 1992 regional success belongs to Latin America," Ferry observed. "The economic liberalization spearheaded by Mexico, Venezuela and Chile have brought the region closer to realizing its true global potential. Reduced trade barriers, increased foreign investment and privatization of government enterprises have unleashed the economic promise of this region. Executive demand in Latin America jumped 11 percent in 1992 and is poised for further growth with the anticipated approval of the North American Free Trade Agreement."
 U.S. Industry Hiring Picture
 In the United States, machinery and manufactured products companies increased their share of senior executive demand from 11 to 13 percent in the last quarter. Low interest rates and rising corporate profits have helped to make new equipment more affordable. Transportation, utilities and communication companies saw their share of executive demand increase from 8 to 11 percent from last quarter 1991 to 1992. While the airlines continue to adjust to the effects of deregulation, utilities have increased their demand for top managers because they face deregulation in 1993. Mergers and the growth of independent power producers have forced this once-protected sector to cut costs, change its ways and seek a new breed of utility executive.
 The hospitality/leisure and entertainment sectors rebounded in 1992 with their share of senior executive demand jumping from 1 to 3 percent in the fourth quarter. As the recession ended, corporate and leisure travel increased and the aftermath of mergers and acquisitions in the entertainment industry continued to fuel the sector's executive demand. Professional service firms, which serve all industries, benefited from the general economic improvement and increased their demand for top managers from 5 to 7 percent of the national total.
 Financial services firms continued their contractions in 1992. Major bank consolidations, widespread downsizing and overall poor earnings reduced the need for banking executives. Heavy casualty losses as a result of Hurricane Andrew coupled with industry-wide restructuring left the nation's insurers unable to pick up any of the slack. As a result, financial senior executives went from 21 percent of national demand in the last quarter of 1991 to 17 percent in 1992.
 Positions for executives at technology companies dropped from 10 to 7 percent of overall demand as the recession and the lack of breakthrough products hurt the electronics industry. The computer industry was characterized by turmoil and falling profit margins. Similarly, defense contractors downsized. Agriculture, natural resources and energy companies saw their share of executive demand drop from 3 to 2 percent of the national total in the last quarter. Demand for chemical company executives dropped from 4 to 3 percent in the quarter, but held at a steady 5 percent for the year.
 Industries in which executive demand was essentially unchanged for the year were consumer products (which accounted for 7 percent of overall demand for the year), wholesale and retail distribution (6 percent), health care (13 percent) and not-for-profit, government, associations and education (10 percent).
 U.S. Executive Demand by Function
 U.S. demand for CEOs increased from 12 to 13 percent of overall senior executive hiring in the last quarter, as boards and shareholders continue to exert pressure on top executives to outperform market and industry trends. Corporate America's search for new board members remained high and constant at 4 percent of overall demand.
 After a flurry of hiring in the manufacturing, engineering, marketing and sales, HR and finance functions, many U.S. companies are seeking senior general managers again. Demand for general managers climbed to 51 percent of overall demand in the last quarter, up from 39 percent in 1991. Demand for information systems executives also rose from 1 to 2 percent of overall need.
 Finance and control executives fell from 11 to 8 percent of total demand in the last quarter. Demand for HR executives fell from 7 to 4 percent and there was a sharp decline from 9 to 3 percent in demand for manufacturing, engineering, and R & D technology managers as a result of the difficulties facing many computer companies and defense contractors.
 The U.S. Regional Picture
 The most significant U.S. regional executive hiring trend in the last quarter of 1992 was the drop from 39 to 31 percent in the East as a result of the reduced demand for management talent by financial institutions and technology companies, particularly those in the computer and defense industries.
 The biggest regional gainer in the quarter was the Midwest, which jumped from 13 to 20 percent of the national total. The resurgence of manufacturing and the increased regional demand for senior health care executives accounted for most of this gain.
 The West, Southeast and Southwest saw their share of national executive demand virtually unchanged in the quarter, with 25 percent, 15 percent and 9 percent respective shares. Despite some dramatic regional changes in the fourth quarter, each region ended 1992 with virtually the same share of overall demand as in 1991.
 750 Companies Surveyed
 The International Index of Executive Vacancies is based on a quarterly survey of 750 Korn/Ferry clients, which are among the world's largest corporations and non-profit organizations, including government agencies, universities and cultural institutions. The index records the hiring of senior executives earning $100,000 or more annually.
 Korn/Ferry International
 Headquartered in New York and Los Angeles, Korn/Ferry International specializes in management searches at the senior level. The firm maintains 16 offices in major U.S. cities with a total of 43 offices worldwide in key business centers throughout North America, Latin America, Europe, Asia/Pacific and Australia. In addition to serving its clients' executive recruiting needs, Korn/Ferry provides related consultation services in executive compensation and organizational consulting.
 NATIONAL INDEX OF EXECUTIVE VACANCIES BY INDUSTRY
 Fourth Quarter Year End
 1991 1992 1991 1992
 Agriculture/Natural Resources/
 Energy 3 pct 2 pct 4 pct 3 pct
 Chemical & Related Products 4 3 5 5
 Technology (Electronics,
 Computers, Software, Defense,
 Telecommunications) 10 7 8 9
 Machinery, Manufactured Products 11 13 11 13
 Consumer Products (not
 elsewhere classified) 8 7 7 7
 Transportation, Utilities,
 Communications 8 11 8 7
 Wholesale & Retail Distribution 4 4 5 6
 Financial Services (Banking,
 Brokerage, Insurance) 21 17 19 16
 Real Estate, Building,
 Construction 2 2 2 2
 Health Care 13 13 14 13
 Not-for-Profit, Government,
 Associations, Education 10 11 9 10
 Hospitality/Leisure,
 Entertainment 1 3 3 2
 Miscellaneous Professional
 Services 5 7 5 7
 Total 100 pct 100 pct 100 pct 100 pct
 NATIONAL INDEX OF EXECUTIVE VACANCIES BY FUNCTION
 Fourth Quarter Year End
 1991 1992 1991 1992
 Board Level 4 pct 4 pct 3 pct 2 pct
 Chief Executive Officer 12 13 16 14
 General Management 39 51 37 45
 Finance & Control 11 8 9 10
 Human Resources & Administration 7 4 7 5
 Information Systems 1 2 2 2
 Manufacturing, Engineering,
 R & D, Technology 9 3 9 7
 Marketing & Sales/Advertising
 & Public Relations 17 15 17 15
 Total 100 pct 100 pct 100 pct 100 pct
 NATIONAL INDEX OF EXECUTIVE VACANCIES BY REGION
 Fourth Quarter Year End
 1991 1992 1991 1992
 East 39 pct 31 pct 33 pct 33 pct
 West 24 25 25 24
 Midwest 13 20 17 18
 Southeast 14 15 15 15
 Southwest 10 9 10 10
 Total 100 pct 100 pct 100 pct 100 pct
 INTERNATIONAL INDEX OF EXECUTIVE VACANCIES BY INDUSTRY
 Fourth Quarter 1992
 Latin United
 Europe America Asia States
 Agriculture/Natural Resources/
 Energy 2 pct 3 pct 3 pct 2 pct
 Chemical & Related Products 14 20 9 3
 Technology (Electronics,
 Computers, Software, Defense,
 Telecommunications 5 3 11 7
 Machines, Manufactured Products 11 16 13 13
 Consumer Products (not
 elsewhere classified) 22 19 20 7
 Transportation, Utilities,
 Communications 9 21 6 11
 Wholesale & Retail Distribution 6 6 4 6
 Financial Services (Banking,
 Brokerage, Insurance) 19 10 21 17
 Real Estate, Building,
 Construction 1 1 1 2
 Health Care 1 (A) (A) 13
 Not-for-Profit, Government,
 Associations, Education 3 (A) (A) 11
 Hospitality/Leisure, Entertainment 1 (A) 1 11
 Miscellaneous Professional
 Services 6 1 10 7
 Total 100 pct 100 pct 100 pct 100 pct
 (A) -- Less than 1 percent.
 INTERNATIONAL INDEX OF EXECUTIVE VACANCIES BY FUNCTION
 Fourth Quarter 1992
 Latin United
 Europe America Asia States
 Board Level 2 pct (A) 1 pct 4 pct
 Chief Executive Officer 2 (A) (A) 13
 General Management 29 22 36 51
 Finance & Control 17 24 18 8
 Human Resources & Administration 8 8 8 4
 Information Systems (A) 3 4 2
 Manufacturing, Engineering,
 R & D, Technology 13 9 3 3
 Marketing & Sales/Advertising &
 Public Relations 29 34 31 15
 Total 100 pct 100 pct 100 pct 100 pct
 (A) -- Less than 1 percent.
 Reproduction permitted with attribution to Korn/Ferry International.
 -0- 2/16/93
 /CONTACT: Stephanie Rosenfelt or Jack Richman of Korn/Ferry, 212-687-1834/


CO: Korn/Ferry International ST: New York IN: SU: ECO

GK-JP -- NYFNS1 -- 6661 02/16/93 07:32 EST
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