- After almost seven years in the position
- Praise and thanks for Rajagopalan
- Tom Monahan taking over
- Rajagopalan said 86 words
(exechange) — Chicago, Illinois, January 23, 2024 — Krishnan Rajagopalan, chief executive of Heidrick & Struggles, leaves his position. As announced by Heidrick & Struggles International Inc. in a news release and in a regulatory filing published on Tuesday, January 23, 2024, Krishnan Rajagopalan leaves his post as chief executive officer at the provider of executive search, after almost seven years in the role, effective March 4, 2024.
Generally speaking, it raises questions when a CEO leaves his post at short notice.
Rajagopalan leaves the company effective April 1, 2024.
Krishnan Rajagopalan’s duties as CEO will be taken over by Thomas L. (Tom) Monahan, most recently Managing Partner at Norton Street Holdings.
The fact that Krishnan Rajagopalan’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
“Planned succession process”
The management change is explained as follows. Heidrick & Struggles stated: “Following a planned succession process, the Board has appointed Thomas L. Monahan III to succeed Rajagopalan as CEO and member of the Board, effective March 4, 2024.”
Precise information regarding Krishnan Rajagopalan’s future plans was not immediately available.
“Retire”
Heidrick & Struggles said: “President and CEO Krishnan Rajagopalan has decided to retire, after more than 23 years with the Company. Rajagopalan will step down as President and CEO and from the Board, effective March 4, 2024, and will retire from the Company as of April 1, 2024, after which he will continue to serve as an advisor, working closely with clients around the world.”
Heidrick & Struggles further said: “On January 23, 2024, Krishnan Rajagopalan, the President and Chief Executive Officer of the Company, notified the Board of Directors (the “Board”) of the Company of his decision to step down as the Company’s President and Chief Executive Officer on March 4, 2024 (the “Transition Date”) and retire from the Company on April 1, 2024.”
The Company also announced that Tom Murray, Heidrick & Struggles’ Global Managing Partner of Executive Search, will become the Company’s President, reporting to Tom Monahan, effective March 4, 2024. In addition to continuing to lead Executive Search, Murray will have operational responsibility for On-Demand Talent, Heidrick Consulting and Go-to-Market in his new role.
Share price decline since January 2019
The announcement follows a decline in Heidrick & Struggles International Inc.’s share price of 8% since January 2019.
In the position of CEO since 2017
Krishnan Rajagopalan became CEO of the Company in 2017.
Krishnan Rajagopalan has been the Company’s President and Chief Executive Officer since July 2017.
He served as acting President and CEO from April 2017 until July 2017.
Prior to becoming President and CEO, Rajagopalan served as Executive Vice President and Managing Partner – Executive Search since January 2016.
Previously, he served as Head of Global Practices beginning in April 2014 and was appointed an Executive Vice President in January 2015.
Rajagopalan has served in other leadership roles with Heidrick, including Global Practice Managing Partner, Technology & Services from 2010 to 2014 and Global Practice Managing Partner, Business/Professional Services from 2007 to 2010.
Rajagopalan joined the firm in 2001 in the Company’s executive search business. Prior to joining Heidrick, Rajagopalan served as Vice President and Partner at A.T. Kearney, Inc.
Rajagopalan formerly served on the board of KludeIn I Acquisition Corp.
86 words by Krishnan Rajagopalan
In the release announcing his departure as CEO of Heidrick & Struggles International Inc., Krishnan Rajagopalan received praise and thanks.
In announcing his departure, Krishnan Rajagopalan said 86 words.
“Tom and Tom will lead Heidrick & Struggles to its next chapter of growth and client impact”
Krishnan Rajagopalan stated: “Leading Heidrick & Struggles has been a privilege, and I want to thank the global team for their support on this journey. I am incredibly proud of what we have achieved, how we have transformed the business through the diversification of our offerings, the impact we have had on clients, the growth and expanded diversity of our team, and the culture that we have built. I am confident that Tom and Tom will lead Heidrick & Struggles to its next chapter of growth and client impact.”
Push-out Score for Krishnan Rajagopalan’s move determined
The Push-out Score™ determined by exechange gauges the pressure surrounding Krishnan Rajagopalan’s move on a scale of 0 to 10.
Read the full story in the exechange report 5.2024 ($).