2010 Q2 Korn/Ferry Confidence in Leadership Index Reverses Course, Shows Declining Confidence in Corporate Leaders

Research Shows Highest Concerns are for CEO and Board of Directors' Leadership Ability

LOS ANGELES, September 7, 2010 - The Korn/Ferry Institute's Confidence in Leadership Index reveals a
significant decline in the trust and confidence executives have for corporate
leadership, as well as their leadership direction. Gauging perceptions of
global leaders over the last five quarters, the survey shows that the
recovery of confidence stalled during Q2, from a surge to all-time highs in
Q1. In some cases, confidence in leaders reversed course as numbers dipped to
2009 levels mirroring several global economic indicators.

The relationship between leadership confidence and economic measures is
substantiated by leading indicators such as the Dow Jones Industrial Average,
Shanghai Stock Exchange, NIKKEI, Sao Paulo Stock Exchange, and the Global Dow
all falling by from 10-23 percent in Q2. Furthermore, the Confidence in
Leadership Index uncovered that the most significant decline in credibility
was at the very top of the house. Corporate boards lost six points in the
credibility of leadership score, and CEOs declined by five points during Q2.

"From the C-suite to the Board, the top of the house is typically the
first to be credited with success in economic upswings, and scrutinized
during fragile environments," said Ana Dutra, CEO, Korn/Ferry Leadership and
Talent Consulting. "Our Index findings seem to indicate that confidence in
leadership closely follows economic upward and downward trajectories. This
suggests that, during times of economic instability, top leadership must take
even more proactive steps to ensure stakeholders have confidence in their
capabilities as leaders. Do they have the rights skills, credentials,
integrity, and ability to drive the organization through the periods of
volatility?"

The Confidence in Leadership Index measures four key factors of
leadership:

    - Characteristics of Leadership
    - Credibility of Leadership
    - Trust in Leadership
    - Direction of Leadership

The Q2 data was collected by Korn/Ferry between May 24-June 30, 2010.

    Confidence in Leadership Major Findings

    - Overall, credibility of leadership globally is down four points from Q1
      and tied for an all-time low at 74 points. The top of the house
      declined the most. Credibility of Boards fell by six points (67).
      Credibility of CEOs fell by five points (73).
    - Trust in leadership fell to an all-time low on the Index at 77, with
      every single trust category losing ground in the quarter.
    - European leadership trends pointed downward, possibly the result of
      Europe's credit market and sovereign debt crisis. Following marked
      improvement in most Confidence in Leadership Index categories in Q1,
      European leadership set an all-time low in Direction of leadership at
      10 (on a -100 getting worse to +100 getting better scale) and saw
      significant drops in credibility and trust.
    - Asia Pacific was the only region to improve in the trust-in-leadership
      category, setting an all-time high at 80. While this is inconsistent
      with Asian financial market performance during Q2, it may be due to
      Asia's general leadership in the global economic recovery.
    - North America generally reverted back to Q2 2009 levels, dropping nine
      points on the direction of leadership scale, losing four in credibility
      of leadership and down three in trust in Leadership after reaching
      all-time highs in each category in Q1. Both the credibility and trust
      in leadership scores were all-time lows at 74 and 78 points
      respectively. The highly-publicized and watched Gulf region oil
      disaster was unresolved when the Index was measured, and may have had
      some influence on these results.
    - Central/South America results were mixed. While the region tallied its
      fifth consecutive improvement in the direction of Leadership, it set
      all-time lows for both credibility and trust in leadership with 78 and
      81 points respectively.

Snapshot of Confidence in Leadership Survey Results

    Credibility of Leadership Scores:

    - Overall credibility of leadership globally is down four points from Q1,
      and tied with Q2 2009 for an all-time low in the Index. The four-point
      swing was the largest quarter-over-quarter change ever for the
      credibility index.

    Category                      Q1 Index   Q2 Index   Change
    Own Leadership Ability              88         88        0
    Direct Reports' Leadership
     Ability                            75         75        0
    Boss's Leadership Ability           75         71       -4
    Company Management's
     Leadership Ability                 75         71       -4
    CEO's Leadership Ability            78         73       -5
    Board of Director's
     Leadership Ability                 73         67       -6
    Global Average for
     Credibility of Leadership          78         74       -4

    Region                        Q1 Index   Q2 Index   Change
    North America                       78         74       -4
    Asia Pacific                        77         76       -1
    Central/South America               82         78       -4
    Europe                              76         71       -5

    Trust in Leadership Scores:

    - Trust in Leadership fell three points to an all-time low of 77 on the
      index, with every single category losing ground in the quarter. The
      previous low was 79 in Q3 2009 (the first time the Trust in Leadership
      questions were fielded).

    Category                                Q1 Index   Q2 Index   Change
    Our business consistently adheres to
     the highest standards of business
     conduct                                      83         81       -2
    The company operates with the highest
     set of ethical standards                     84         81       -3
    All employees understand and follow
     our code of conduct                          81         78       -3
    Our leaders are models of ethical
     business conduct                             82         78       -4
    Leaders are quick to admit mistakes
     and accept responsibility                    70         68       -2

    Category                  Q1 Index   Q2 Index   Change
    North America                   81         78       -3
    Asia Pacific                    78         80       +2
    Central/South America           84         81       -3
    Europe                          77         72       -5
    Global Averagefor Trust
     in Leadership                  80         77       -3

    Direction of Leadership Scores:

    - The direction of leadership - measured on a -100 (getting worse) to
      +100 (getting better) scale - declined by seven points (from 24 to 17),
      yet remained in positive territory globally. The Q2 index hovered just
      above the all-time low of 16 set in Q2 and Q3 2009.

    Region                    Q1 Index   Q2 Index   Change
    North America                   14          5       -9
    Asia Pacific                    36         32       -4
    Central/South America           49         50       +1
    Europe                          22         10      -12
    Global Average for
     Direction of Leadership        24         17       -7

The margin of error within each wave is +/- 4.4%. For complete survey
results, please visit www.kornferryinstitute.com.

About The Korn/Ferry Institute

The Korn/Ferry Institute was founded to serve as a premier global voice
on a range of talent management and leadership issues. The Institute
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development combined with its preeminent behavioral research library. The
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Korn/Ferry International (NYSE: KFY), with a presence throughout the
Americas, Asia Pacific, Europe, the Middle East and Africa, is a premier
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firm delivers an array of solutions that help clients to attract, develop,
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Mary Beth Barron, +1-312-526-0582, cell, +1-312-543-0150, marybeth.barron at kornferry.com, or Kevin Oates, +1-310-584-8331, cell, +1-310-869-7519, kevin.oates at ketchum.com, both of Korn/Ferry International