State of the Market - Board and Executive Movements August 2019

TOP KEY BOARD AND EXECUTIVE MOVEMENTS IN AUSTRALIA AUGUST 2019

“Blenheim Partners delivered beyond our expectations and showed us what true search can provide. They get to the heart of the matter, they are prepared to give us advice and not sit on the fence, something which is very refreshing. I have used the big 5 search firms over the years and have been told their international coverage will ensure international candidates. It is a fallacy, my experience has been they don’t. Their international colleagues are not incentivised to help the local firm. Blenheim Partners were clear about their model and their international capability. I met more A grade international candidates in my first engagement with Blenheim Partners than I had in five years with the others. Blenheim delivered an exceptional outcome.” CEO, ASX 50 Company •

BACKGROUND Blenheim Partners specialise in: ▪ Executive Search; ▪ Non-Executive Director Search; ▪ Board Strategy and Structure Consulting; ▪ External Succession Planning; and ▪ Executive Re-Engagement / Transition. Founded in 2012, our team have acted as specialist Psychologists, Coaches and exceptionally adviser to many of the world’s leading experienced Researchers. corporations on Board and Executive performance, capability and succession planning. Blenheim Partners is continually investing in knowledge and understanding as exemplified by Our consultants have worked with clients from our Thought Leadership “The Challenges of all sectors and a broad range of geographies. Attaining Growth”, Industry Papers and monthly They include over 80 of the ASX 100, 10% of the Market Intelligence reports. FTSE 100, Private Equity, Multinational, Private Family and Mutually Owned Companies. Our philosophy is to develop deep and committed relationships with a select number of Our work includes assignments that are both local clients and help them deliver a superior and international in scope. performance by optimising the composition of their Board and Executive team. Our team consists of senior Search Our culture is built on pride, professionalism, Consultants, Human Resource Directors, esprit de corps and client service.

ENERGY AGL Energy Ltd: Richard Wrightson has resigned from the role of Executive General Manager, Wholesale Markets. Richard will continue in his role until early 2020. Genesis Energy Ltd: Joanne Perry has advised the Company of her intention or retire as a Director at the conclusion of the Company’s upcoming Annual Shareholder Meeting. Meridian Energy Ltd: Chief Executive Officer of Meridian Energy and Powershop Australia, Ed McManus has resigned. Mr McManus’s departure date has yet to be determined. Chris Ewers has been promoted to General Manager Wholesale. Michelle Henderson, Julia Hoare and Nagaja Sanatkumar will join the Board in the coming months. Between 1 January and 30 June 2019, there were no Chair appointments in Energy, however of the total ASX NED appointments, 12.4% were in Energy. Of the NED appointments in Energy, 68% were male, 32% were female. Of the total ASX CEO Movements, there were approximately 13% in Energy of which 33% were internal appointments and 67% were external. All appointments were male. Of the total ASX CFO appointments there were approximately 15% in Energy of which 50% were internal and the other 50% external. 83% were male, 17% were female. FINANCIAL SERVICES Australian Ethical Investment Ltd: Phil Vernon has stepped down as Managing Director and Chief Executive Officer effective 31 August 2019. Steve Gibbs will be the Acting Chief Executive Officer and has stepped down as Chairman. Michael Monaghan will act in the role of Chairman. Bailador Technology Investments Ltd: Brodie Arnhold has been appointed as Independent Non-Executive Director. Sankar Narayan has announced his retirement from the Board effective 30 August 2019. Bank of Queensland Ltd: David Willis will retire from the Board at BOQs Annual General Meeting on 10 December 2019. Challenger Ltd: Masahiko Kobayashi has been appointed as a Non-Executive Director and will also join Challenger’s Nomination Committee. Commonwealth Bank of Australia Ltd: Carmel Mulhern has been appointed to the role of Group Executive Group General Counsel and Governance, effective to commence in January 2020. Also, Scott Wharton has been promoted to the new role of Group Executive, Program Delivery. Elanor Investors Group Ltd: Anthony Fehon has been appointed as a Non-Executive Director.

Money3 Corporation Ltd: Kate Robb has been appointed as Independent Non-Executive Director. MyState Ltd: David Harradine has resigned as Chief Financial Officer, effective 25 October 2019. Vaughn Richtor has been appointed as a Non-Executive Director effective 1 September 2019. Pendal Group Ltd: Nick Good has been appointed as Chief Executive Officer of the J O Hambro Capital Management operations in the United States, effective 9 September 2019. QV Equities Ltd: John McBain has advised that he will retire from the Board of Directors. Eamonn Roles has been appointed as Non-Executive Director, effective immediately. Thorn Group Ltd: Chief Executive Officer Tim Luce has indicated that he will leave the Company to pursue other interests. Between 1 January and 30 June 2019, of the total ASX Chair appointments, there were approximately 13% in Financial Services of which 100% were internal appointments and 0% were external. 75% were male and 25% were female. Of the total ASX NED appointments, there were approximately 9% in Financial Services of which 46% were male and 54% were female. Of the total ASX CEO appointments there were approximately 6% in Financial Services of which 33% were internal appointments and 67% were external, and 100% were male and 0% were female. Of the total ASX CFO appointments there were approximately 10% in Financial Services of which 0% were internal and 100% external. 75% were male and 25% were female. INDUSTRIALS/MANUFACTURING AMA Group Ltd: Ray Malone has decided to step down from the Chairman role and the Board effective immediately. Anthony Day has been appointed as Chairman of the company. Ausdrill Ltd: Keith Gordon has resigned as a Non-Executive Director. BlueScope Steel Ltd: Pat Finan will take on the new role of Chief Executive Hot Rolled Products North America. Alec Highnam, President BlueScope North America, will take on the expanded role of Chief Executive BlueScope Buildings. Boart Longyear Ltd: Tye Burt will join the Board as a Non-Executive Director effective immediately and Kevin McArthur will join the Company’s Board as Chairman effective 1 September 2019 replacing Marcus Randolph who will be stepping down as Chair and Gretchen McClain whom has also elected to step down. Brickworks Ltd: Malcolm Bundey has been appointed as an Independent Non-Executive Director effective 1 October 2019.

Caltex Australia: Managing Director and Chief Executive Officer, Julian Segal has informed the Board of this intention to retire and will step down once a formal search and transition process has been completed. DroneShield Ltd: Carla Balanco has been promoted to Chief Financial Officer. James Hardie Industries Plc: Matthew Marsh, Chief Financial Officer and Executive Vice President has resigned to pursue other opportunities. Anne Lloyd has been appointed Interim Chief Financial Officer effective immediately. Orica Ltd: Ian Cockerill has retired from the Board effective immediately. Orora Ltd: Thomas Gorman has been appointed as a Non-Executive Director effective 2 September 2019. Pact Group Holdings Ltd: Peter Margin has notified the company of his retirement from the Board of Directors, effective immediately. Qube Holdings Ltd: Stephen Mann has been appointed as a Non-Executive Director, effective immediately. Quickstep Holdings Ltd: Bruce Griffiths has announced his retirement from the Board. Ridley Corporation Ltd: Quinton Hildebrand has been appointed as Chief Executive Officer and Managing Director, effective immediately. Interim CEO David Lord will step down and resume his role as a Non-Executive Director and Chair of Remuneration and Nominations Committee. Seven Group Holdings Ltd: Bruce McWilliam has advised he will retire from the Board at this year’s Annual General Meeting. Sims Metal Management Ltd: John DiLacqua has retired from the Board. Between 1 January and 30 June 2019, of the total ASX Chair appointments, approximately 13% were in Industrials/Manufacturing of which 100% were internal appointments and 0% were external. 100% were male and 0% were female. Of the total ASX NED appointments there were approximately 8% in Industrials/Manufacturing of which 67% were male and 33% were female. Of the total ASX CEO appointments there were approximately 7% in Industrials/Manufacturing of which 33% were internal appointments and 67% were external. 67% were male, 33% were female. Of the total ASX CFO appointments there were approximately 8% in Industrials/Manufacturing of which 33% were internal appointments and 67% external. 67% were male, 33% were female.

INSURANCE Insurance Australia Group Ltd: Peter Horton has been appointed as Group General Counsel effective end of 2019. QBE Insurance Group Ltd: Todd Jones has been appointed to the role of Chief Executive Officer, North America, succeeding Russ Johnston who has decided to seek opportunities outside of QBE. Mr Jones will commence in the role on 1 October 2019 and will be based in the New York office. Suncorp Group Ltd: Lisa Harrison has been promoted to the newly create role of Chief Customer and Digital Officer. Also, due to organisational changes, Pip Marlow has decided to resign effective immediately. Between 1 January and 30 June 2019, there were no ASX Chair and ASX CFO appointments in Insurance. Of the total ASX NED appointments there were approximately 5% in Insurance, of which 72% were male and 28% were female. Of the total ASX CEO appointments there were approximately 2% in Insurance of which 0% were internal and 100% were external. 100% of the appointments were male and 0% were female. MEDIA/ENTERTAINMENT Donaco International Ltd: Yugo Kinoshita has been appointed as an Independent Non- Executive Director. Event Hospitality and Entertainment Ltd: Ken Chapman has resigned as an Independent Non- Executive Director. HT&E Ltd: Due to organisation review, Chief Financial Officer, Jeff Howard and Group General Counsel and Company Secretary, Yvette Lamont will be leaving the company at the end of the year. Andrew Nye has been appointed Chief Financial Officer of HT&E and ARN, effective immediately. Michael Harvey, currently CFO/COO of ARN, will assume the COO role at ARN full time. IVE Group Ltd: Warwick Hay has resigned as Managing Director. Mr Hay will remain employed until 31 January 2020. Chief Operating Officer, Matthew Aitken has been appointed Group Chief Executive Officer effective immediately. Nine Entertainment Ltd: Paul Koppelman will join as Chief Financial Officer effective 3 September 2019. Seven West Media Ltd: James Warburton has been appointed as Managing Director and Chief Executive Officer effective immediately, succeeding Tim Worner who has resigned. Sky Network Television Ltd: Philip Bowman has been appointed Chair of Sky effective immediately, replacing Peter Macourt.

The Star Entertainment Group Ltd: Due to organisational review, Chief Financial Officer Chad Barton has decided to leave the business. Mr Barton’s responsibilities will transition to Harry Theodore. Geoff Hogg has been appointed to the newly created role of Group Executive Operations and Paula Martin has been appointed to the newly created role of Chief Legal and Risk Officer and Company Secretary. Between 1 January and 30 June 2019, of the total ASX Chair appointments, approximately 3% were in Media, of which 0% were internal appointments and 100% were external. 0% were male and 100% were female. Of the total ASX NED appointments there were approximately 4% in Media of which 67% were male and 33% were female. Of the total ASX CEO appointments there were approximately 6% in Media of which 33% were internal appointments and 67% were external. 100% were male, 0% were female. Of the total ASX CFO appointments there were approximately 10% in Media of which 0% were internal appointments and 100% external. 67% were male, 33% were female. MINING Alacer Gold Corp: Kay Priestly has been appointed to Alacer’s Board of Directors, effective Immediately. Australian Pacific Coal Ltd: Craig McPherson has been appointed as Chief Financial Officer and Company Secretary, effective immediately. Fortescue Metals Group Ltd: Dr Ya-Qin Zhang has been appointed to the Board as a Non- Executive Director effective 1 September 2019. Hastings Technology Metals Ltd: Guy Robertson has been re-appointed a Director of Hastings effective immediately. Millennium Minerals Ltd: Warren Hallam has been appointed Managing Director and Chief Executive Officer effective immediately. MMG Ltd: Jianxian Wei has been appointed as Executive General Manager Operations, Americas. OceanaGold Corporation Ltd: Catherine Gignac has been appointed as a Non-Executive Director. Orocobre Ltd: Alex Losada has resigned as Chief Operating Officer effective immediately. Panoramic Resources Ltd: Managing Director, Peter Harold will be leaving the company after 18 years. A search has commenced for his replacement. Regis Resources Ltd: Paul Thomas has advised the Board of his decision to retire as a Director effective immediately. Mr Thomas will continue in his capacity as Chief Operating Officer until the end of September 2019.

Between 1 January and 30 June 2019, of the total ASX Chair appointments, approximately 38% were in Mining, of which 75% were internal appointments and 25% were external. 83% were male and 17% were female. Of the total ASX NED appointments there were approximately 28% in Mining of which 81% were male and 19% were female. Of the total ASX CEO appointments there were approximately 26% in Mining of which 42% were internal appointments and 58% were external. All appointments were male. Of the total ASX CFO appointments there were approximately 18% in Mining of which 14% were internal appointments and 86% external. 86% were male, 14% were female. PHARMACEUTICALS/HEALTH CARE Healius Ltd: Maxine Jaquet has been promoted to the role of Chief Financial Officer. John McKechnie has been appointed as Chief Executive, Pathology. Integral Diagnostics Ltd: Anne Lockwood has been promoted to the role of Chief Financial and Commercial Officer. Mesoblast Ltd: Dr Fred Grossman has been appointed as Chief Medical Officer replacing Dr Donna Skerrett who will continue in an advisory role. Virtus Health Ltd: Dr Michael Stanford AM has been appointed as a Non-Executive Director, effective 2 September 2019. Between 1 January and 30 June 2019, of the total ASX Chair appointments, approximately 6% were in Pharmaceutical/Healthcare, of which 100% were internal appointments and 0% were external. 100% were male and 0% were female. Of the total ASX NED appointments there were approximately 4% in Pharmaceutical/Healthcare of which 50% were male and 50% were female. Of the total ASX CEO appointments there were approximately 4% in Pharmaceutical/Healthcare of which 50% were internal appointments and 50% were external. 50% were male, 50% were female. Of the total ASX CFO appointments there were approximately 8% in Pharmaceutical/Healthcare of which 33% were internal appointments and 67% external. 100% were male and 0% were female. PROPERTY Abacus Property Group Ltd: John Thame will retire as Chair effective immediately. As previously announced, he will be succeeded as Chair by current Non-Executive Director Myra Salkinder. The Board has also nominated Mark Haberlin as the Lead Independent Director. ALE Property Group Ltd: Chief Executive Officer and Managing Director, Andrew Wilkinson has indicated after 16 years he will look to pursue new executive challenges outside of ALE. Arena REIT: Rosemary Hartnett has been appointed as an Independent Non-Executive Director.

Servcorp Ltd: Chairman, Bruce Corlett AM has advised the Board that he will not be standing for re-election at the AGM in November. The Hon Mark Vaile AO will take over as Chair. Also, Tony McGrath has been appointed to the Board as an Independent Non-Executive Director effective immediately. Between 1 January and 30 June 2019, of the total ASX Chair appointments, approximately 6% were in Property, of which 100% were internal appointments and 0% were external. 100% were male and 0% were female. Of the total ASX NED appointments there were approximately 3% in Property of which 100% were male and 0% were female. Of the total ASX CEO appointments there were approximately 2% in Property of which 100% were internal appointments and 0% were external. 100% were male, 0% were female. Of the total ASX CFO appointments there were approximately 8% in Property of which 0% were internal appointments and 100% external. 100% were male, 0% were female. RETAIL/CONSUMER AACo Ltd: Marc Blazer has been appointed as a Non-Executive Director. Adairs Ltd: Ashley Gardner has been appointed as Chief Financial Officer, effective immediately. Blackmores Ltd: Head of China, Sophia Tseng departed her role in July after a few months in the job. Non-Executive Directors Helen Nash and Jackie McArthur have resigned effective immediately. Myer Holdings Ltd: Ian Cornell will be retiring from the Board at the Company’s 2019 Annual General Meeting. Retail Food Group Ltd: Jessica Buchanan has resigned as a Director, in order to facilitate her transition to a dedicated operational consulting role. Yowie Group Ltd: Glen Watts has decided to resign as a Director. Neville Bassett has been appointed as a Non-Executive Director. Mr Bassett has been Yowie’s Company Secretary since November 2013 and will serve as a Director in an interim capacity whilst the company conducts a search. Between 1 January and 30 June 2019, of the total ASX Chair appointments, there were approximately 3% in Retail/Consumer of which 0% were internal appointments and 100% were external. 100% were male and 0% were female. Of the total ASX NED appointments there were approximately 14% in Retail/Consumer of which 57% were male and 43% were female. Of the total ASX CEO appointments there were approximately 11% in Retail/Consumer of which 60% were internal appointments and 40% were external. 100% were male, 0% were female. Of the total ASX CFO appointments there were approximately 13% in Retail Consumer of which 40% were internal appointments and 60% external. 100% were male, 0% were female.

TECHNOLOGY/TELECOMMUNICATIONS Amaysim Australia Ltd: Thorsten Kraemer has decided to resign as a Non-Executive Director effective immediately. ARQ Group Ltd: Karl Siegling has been appointed as Non-Executive Director, effective immediately. Bravura Solutions Ltd: Brian Mitchell has announced his intention to retire as Chairman. Neil Broekhuizen has been appointed as Chairman, effective immediately. Chorus Ltd: Kate McKenzie has announced she will step down as Chief Executive Officer and Managing Director at the end of 2019 to return to Australia. Corporate Travel Management Ltd: Sophie Mitchell has been appointed as a Non-Executive Director. Anne Tucker has been appointed to the newly created role of Global Chief Legal Officer and Company Secretary. Data #3 Ltd: Mark Esler has been appointed as a Non-Executive Director. Jumbo Interactive Ltd: Professor Sharon Christensen has been appointed to the Board effective 1 September 2019. Nearmap Ltd: Tracey Horton AO has joined the Board as an Independent Non-Executive Director effective 1 September. Non-Executive Director, Ian Morris has advised that he will not seek re-election at the 2019 AGM. Pushpay Holdings Ltd: Justine Smyth has been appointed as an Independent Non-Executive Director. Daniel Steinman has resigned as a Director of Pushpay effective immediately. Spark New Zealand Ltd: Heather Polglase has been promoted to Group Human Resources Director, effective 1 September 2019. Heather is succeeding Joe McCollum who has decided to step down after seven years in the HR role. Also, Andrew Pirie, Corporate Relations Lead has decided to leave Spark in December 2019. Speedcast International Ltd: John Mackay has resigned as Chairman, effective immediately but will remain on the Board as a Non-Executive Director until 30 September 2019. Stephe Wilks has been appointed to the Board and elected Chairman effective immediately. In addition to the Board changes, Clive Cuthell has resigned as Chief Financial Officer. Mr Cuthell will continue as CFO until the end of the year. Between 1 January and 30 June 2019, of the total ASX Chair appointments, there were approximately 16% in Technology/Telecommunications of which 40% were internal appointments and 60% were external. 100% were male and 0% were female. Of the total ASX NED appointments there were approximately 10% in Technology/Telecommunications of which 74% were male and 26% were female. Of the total ASX CEO appointments there were approximately 15% in Technology/Telecommunications of which 71% were internal

appointments and 29% were external. 85% were male, 15% were female. Of the total ASX CFO appointments there were approximately 8% in Technology/Telecommunications of which 33% were internal appointments and 67% external. 33% were male, 67% were female. TRANSPORTATION Air New Zealand Ltd: Chief Financial Officer, Jeff McDowall has been appointed Acting Chief Executive Officer effective 26 September 2019 replacing Christopher Luxon. Stephan Deschamps will take up the position as Acting Chief Financial Officer. Chairman Tony Carter will also retire as Chairman at the Annual Shareholder meeting on 25 September 2019 and be replaced by Director Dame Therese Walsh. Chalmers Ltd: Paul Digney and John Digney have been appointed as Directors. Gary Chalmers, Peter Brannighan and Layton Daglish have resigned as Directors. K&S Corporation Ltd: Sallie Emmett has been appointed as a Non-Executive Director effective 24 September 2019. Lindsay Australia Ltd: Robert Green has been appointed as a Non-Executive Director. Virgin Australia Holdings Ltd: Keith Neate has been appointed Chief Financial Officer. Stuart Aggs has been promoted to Chief Operating Officer. John MacLeod has been appointed Chief Commercial Officer effective 8 October 2019. Danielle Keighery has been promoted to Chief Experience Officer. Geoff Smith and Merren McArthur have decided to depart the business. Between 1 January and 30 June 2019, there were no ASX Chair appointments in Transportation, however of the total ASX NED appointments, approximately 2% were in Transportation, of which 67% were male and 33% were female. Of the total ASX CEO appointments there were approximately 4% in Transportation of which 0% were internal appointments and 100% were external. 100% were male, 0% were female. Of the total ASX CFO appointments there were approximately 3% in Transportation of which 100% were internal appointments and 0% external. 0% were male, 100% were female.

HOW TO SELECT AN EXECUTIVE SEARCH FIRM FOR YOUR NEXT SEARCH ASSIGNMENT One of the most critical questions you will face is how to choose an Executive Search Firm to represent your organisation in the market to acquire key executives that can affect the success or failure of your business. If you choose the right Executive Search Firm then you should get a highly qualified Executive that meets your specific organisational needs who will contribute to the future success of your organisation. If however, you choose the wrong Executive Search Firm your problems will multiply, from the issues of managing the wrong Executive to the consequences of your organisation’s success being compromised versus competitors. To make the right choice is therefore critical, and the following provides some guidance on the factors you should consider in making your decision as to which Executive Search Firm. WILL THEY AND CAN THEY REPRESENT YOU AND YOUR ORGANISATION POSITIVELY IN THE MARKETPLACE? Employer brand is an important consideration in the process of attracting high calibre candidates to your organisation. It is something that is developed and nurtured over many years and the last thing you want is someone representing you who does not understand your brand, your culture and your organisational values. The Executive Search Firm you select will for all intensive purposes be representing your brand in the marketplace. As a consequence, you need to ensure that the firm and those in that firm representing you understand, and are able to pitch your organisation in the best possible light to ensure the attraction of high calibre candidates, especially passive candidates.

WHAT PROCESS DOES THE EXECUTIVE SEARCH FIRM UNDERTAKE IN THE IDENTIFICATION OF CANDIDATES? The role of the Executive Search Firm is to find you the absolute best candidates in the market that match your brief. The process they employ is critical to achieving this outcome. If the process is poor, such as using their database and using job boards, the reality is you will not get the best candidates. You will simply be conducting a recruitment process which is generally reserved for lower level rather than Executive roles. In Executive Search you want the best candidates and that definitely needs to include passive candidates in the market. The only way to identify passive candidates is by research. To assess the research capability of your Executive Search Firm, ask them to explain their process for identifying passive candidates and in your client reference checks specifically ask client references as to the quality and breadth of the identified potential candidates. WHO WILL BE THE LEAD PARTNER AND THE TEAM FOR YOUR EXECUTIVE SEARCH AND HOW STRONG IS THEIR DESIRE AND COMMITMENT TO YOU THE CLIENT? The Lead Partner or Lead Partners (if you are lucky enough) are critical to the success of the Executive Search. You want to ensure that they are absolutely committed to your assignment and have the desire to ‘leave no stone unturned’ in ensuring that you get the very best candidates available in the market for your consideration. WHAT ARE THE “OFF LIMITS”? As a client when you engage an Executive Search Firm you are working on the basis that they are finding you the very best candidates for consideration in the market. You need to test this and ask yourself whether they can put up candidates for your consideration from their other client companies who they have or are working for. This is where the term “Off Limits” comes in. This fact is very important to you because the larger the “Off Limits”, the less of the market an Executive Search Firm is able to cover to access the best candidates. In simple terms, this means they will NOT be able to get you the best candidates in the market. If you think this through, the consequence is significant, because if your Executive Search Firm cannot access the best candidates in the market, but only a subset, you are not getting what you want or are paying for. So why would you engage them in the first place? DOES YOUR EXECUTIVE SEARCH FIRM UNDERSTAND THE ROLE YOU ARE SEEKING AND THE NATURE OF THAT MARKET? This is fundamental, because if the Executive Search Firm and the Lead Partner in particular does not understand the role or the market, how can they undertake a search to find you the very best candidates?

IS YOUR EXECUTIVE SEARCH FIRM AND THE LEAD PARTNER ACTIVE IN THOUGHT LEADERSHIP IN THE MARKET? Thought leadership is the ability to be continually thinking and researching how the market is changing, both in the broader sense and in the specific market in which your organisation operates. The reason this is important is because you want your Lead Partner to be thinking of the role you have today and what it might evolve into tomorrow. By knowing this, or at the very least having some context of the potential changes, your Executive Search Firm and Lead Partner can be pro-active in putting forward to you candidates for consideration that are right for your business of today, and others who may be right for your business of tomorrow. IS THERE AN AT-RISK COMPONENT OF THE FEE THAT ENSURES THE EXECUTIVE SEARCH FIRM HAS SKIN-IN-THE-GAME? There is nothing quite like an alignment between client and service provider needs, to ensure in this case your Executive Search Firm is listening to your needs as the client and going the “extra mile” to deliver against them. While an at-risk or performance component is not common in the Executive Search Industry you should take the opportunity to ask if there is such a component in the fee structure of the Executive Search Firms you are considering. If there is such a component, it can give you some comfort that you and your chosen Executive Search Firm will be aligned in achieving the common objective of the very best candidates in the market for your role. HOW MANY OF THE EXECUTIVE SEARCH FIRM’S CLIENTS ARE REPEAT BUSINESS? The ultimate test for all businesses is the repeat client test. It is the ultimate measure of client satisfaction because if a client keeps coming back for additional services from the Executive Search Firm you are considering, then you can be reasonably assured that the quality of their offerings is high and meeting the client’s needs. WHAT DO CLIENT REFERENCES SAY? At the end of the day, the test of what an Executive Search Firm tells you in their pitch for your work versus the reality of what they are doing is by client references. Ask for and take the time to speak to a number of the Executive Search Firm’s clients, and test their performance against all of the above criteria with the client references they provide. Ultimately, by following the above you will be far more confident in the Executive Search Firm you select being able to deliver to you and your organisation the very best candidates in the market for the role you are seeking for your organisation.

DO YOU REALLY UNDERSTAND “OFF LIMITS” IN EXECUTIVE SEARCH? IF YOU DON’T, MAYBE YOU SHOULD “OFF LIMITS” – WHAT IT MEANS IN EXECUTIVE SEARCH Executive Search firms are professional services firms that undertake the process of Executive Search to find high quality executive candidates for their client companies. As a client when you engage an Executive Search Firm you are working on the basis that they are finding you the very best candidates for consideration in the market. But “are they” or indeed “can they”? By “can they” I mean can they ethically provide you the best candidates when they are working for other clients. That is can they put up candidates for your consideration from their other client companies who they have or are working for. This is where the term “Off Limits” comes in. “Off Limits” is a convention in the Executive Search industry that in simple terms means that an Executive Search firm who has been retained on a contingent basis by a client will place the interests of their client at the forefront, meaning that they: • Will not recruit from the department of a client where they have placed someone; or • Will not recruit from the company of a client where they have placed someone. Conventions vary but in general this period would be for two years following their last placement of a candidate and never the actual candidate.

WHY YOU NEED TO CARE This fact is very important to you and you do need to care as a client because the larger the “Off Limits”, the less of the market your Executive Search firm is able to cover to access the best candidates. In simple terms this means they will NOT be able to get you the best candidates in the market. If you think this through, the consequence is significant, because if your Executive Search firm cannot access the best candidates in the market and only a subset, you are not getting what you want or are paying for. So why would you engage them in the first place? BIG AND GLOBAL FIRMS VS BOUTIQUE FIRMS Thinking through the above it becomes abundantly clear the bigger your Executive Search firm, and further, if it is global, the less of the candidate market you have access to as a client. This may sound counterintuitive as you would normally think the bigger the firm and the greater their global footprint the greater their ability to find you the best candidates in the market. As can be seen from the above however this is not the case and the boutique firm will in most cases be better placed to provide you with the greater market coverage and access to the best candidates as it has less “Off Limits”. HOW BEST TO DEAL WITH “OFF LIMITS”? So how best to deal with the “Off Limits” issue as a current client and a potential client? Firstly, as a client, make sure you ask your Executive Search Firm two key questions: • What is your client list over the past two years and which of these can you not access candidates from for my search? • At the completion of my Executive Search how will “Off-Limits” apply to my company? That is will you now not target any of my staff for the next two years at the completion of my Executive Search? It is important to know this upfront, as clarity at this point will make the road smoother down the track in your dealings with Executive Search firms.