Short answer: A retained executive search costs 25% to 33% of the executive's first-year cash compensation and usually takes 90 to 180 days. Retained search is the standard for C-suite roles. The stakes are high: 40% to 60% of new executives fail within 18 months, and a failed C-suite hire can cost 5 to 15 times the executive's annual pay.
Key Takeaways
- Fees: 25% to 33% of first-year cash compensation.
- Timeline: 90 to 180 days, or a 30 to 45-day finalist slate for PE mandates.
- Risk: 40% to 60% of new executives fail within 18 months.
- Protection: off-list reference checks and behavioral assessment lower the failure rate.
Executive Search at a Glance
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What Does an Executive Search Firm Cost?
Retained fees typically range from 25% to 33% of first-year cash compensation. For a CEO earning a $500,000 base salary, the fee is $125,000 to $165,000. Some firms charge a flat fee for specific roles. Fees for AI executive roles have risen with pay: top AI leaders at leading technology companies can earn $10M to $50M or more a year, which changes the fee calculation. Read the AI executive search pricing breakdown.
How Long Does an Executive Search Take?
The industry average for a retained C-suite search is 90 to 180 days from kickoff to accepted offer. Firms with AI-assisted candidate mapping and strong passive candidate networks can shorten that. PE-backed companies should expect a finalist slate within 30 to 45 days.
Why Do New Executives Fail?
Studies consistently show that 40% to 60% of new executives fail within 18 months. The main causes are:
- Poor cultural fit.
- Misaligned expectations between the board and the executive.
- Weak due diligence on leadership style and decision-making.
Rigorous off-list reference checks and behavioral assessment significantly reduce this risk.
Retained vs Contingency Search: Which Should You Use?
- Retained search: part of the fee is paid upfront, and the firm dedicates exclusive resources, senior partner attention, a full market map and a structured assessment. It is the standard for C-suite roles.
- Contingency search: the firm is paid only on placement and runs many searches at once. It is more common for director and VP roles where speed and volume matter more than depth.
How to Check a Search Firm's AI Capabilities
Ask whether the firm uses AI to map candidate ecosystems or only to manage its existing database. An AI interface layered on a static CRM is very different from machine learning that finds non-obvious candidates in adjacent industries. Ask for a demonstration before the engagement starts.
Related: AI-driven executive search methodology and AI executive compensation benchmarks 2026.
Frequently Asked Questions
How much does an executive search firm cost?
Retained executive search fees typically run 25% to 33% of the placed executive's first-year cash compensation. For a CEO with a $500,000 base salary, that is $125,000 to $165,000.
How long does an executive search take?
A retained C-suite search averages 90 to 180 days from kickoff to accepted offer. PE-backed companies should target a finalist slate within 30 to 45 days.
What is the failure rate for new executives?
Studies show 40% to 60% of new executives fail within 18 months, mainly because of poor cultural fit, misaligned expectations and weak due diligence.
What is the difference between retained and contingency search?
Retained firms are paid part of the fee upfront and dedicate exclusive resources to the search. Contingency firms are paid only on placement and run many searches at once. Retained search is the standard for C-suite roles.
How do I check an AI search firm's real AI capabilities?
Ask whether the firm uses AI to map candidate ecosystems or only to manage its database, and ask for a demonstration of how it finds candidates.
Work with Christian & Timbers
Christian & Timbers has placed more than 5,000 C-suite executives over 40 years, including CEO, CTO, CFO, CRO, CISO and Chief AI Officer searches at technology, AI-native and PE-backed companies. To discuss a search mandate, contact Christian & Timbers.