Hiring at the executive level is one of the most important investments a company makes. Boards and CEOs expect clarity not only in candidate quality but also in the economics of executive search. Understanding fees, pricing models, and payments is essential to managing expectations and ensuring alignment with your chosen partner.
At Christian & Timbers, we emphasize transparency in how we structure engagements. Our clients range from global public companies to private equity-backed innovators, and across all mandates, clarity on retainer fees, administration fees, and placement fees builds trust and speeds execution.
The Retainer Model
Most top executive search firms operate on a retainer basis. A retainer is an upfront commitment that secures the search partner’s time, market access, and dedicated resources. Retainers are typically structured as a percentage of the total expected search fee and may be divided into installments across the engagement.
The benefit of the retainer model is that it ensures search firms are fully committed to delivering results, with dedicated teams mapping markets, approaching candidates, and providing rigorous assessments.
Placement Fee and Success Payments
In addition to the retainer, many firms charge a placement fee or success payment upon the successful hiring of a candidate. This aligns the interests of the search firm with the client’s hiring objectives.
Placement fees are often calculated as a percentage of the candidate’s first-year total cash compensation. While the exact figure varies, it reflects the level of seniority, market demand, and complexity of the mandate.
For clients, the placement fee guarantees that the search firm has a vested interest in not just delivering candidates but in ensuring long-term fit and retention.
Administration Fee and Project Expenses
Alongside retainers and placement fees, some firms apply an administration fee to cover direct costs related to the search. This may include research databases, background checks, travel, or assessment tools. These costs are typically transparent and itemized, ensuring no hidden charges for clients.
An administration fee is modest compared to the overall engagement but supports the thoroughness and speed of delivery that top-level executive search requires.
Payment Structure
Executive search payments are usually broken into milestones:
- Initial Retainer – paid at the launch of the search.
- Second Installment – triggered by the delivery of a qualified shortlist.
- Final Payment or Placement Fee – paid once the candidate accepts the offer.
- Administration Fee – invoiced either upfront or upon completion of project expenses.
This phased structure balances client cash flow with the search firm’s investment of time and resources, ensuring alignment from start to finish.
Why Fees Reflect Value
Executive search is not transactional hiring. It involves deep market mapping, confidential outreach, rigorous assessment, and reference validation. The pricing reflects the expertise required to identify and secure leaders who directly impact enterprise growth, culture, and market reputation.
At Christian & Timbers, we have engineered leadership teams for more than four decades. Our retainer and placement fee structures reflect both market standards and the premium value of access to top-tier leadership talent.
Key Takeaways for Boards and CEOs
When evaluating executive search firms, leadership teams should look closely at:
- Retainer: Understand the percentage, installment structure, and scope of commitment.
- Placement Fee: Clarify whether it is fixed or tied to candidate compensation.
- Administration Fee: Ensure transparency in how project expenses are billed.
- Payments: Review the timing of installments and success-based triggers.
- Pricing Model: Confirm whether the firm charges flat fees, percentage-based fees, or hybrid models.
By asking the right questions, boards can secure partnerships that are not only transparent in fees and pricing but also aligned with long-term value creation.