Retained executive search is a model where a company pays one search firm an exclusive, staged fee, usually 25% to 33% of first-year cash compensation, to fill a senior role. Boards use it for CEO, CFO, CTO, and CMO hires where a wrong appointment is expensive to undo.
Christian & Timbers has run retained searches since 1980 and has completed over 5,000 C-suite searches.
How retained search differs from contingency search
A contingency firm is paid only if its candidate is hired. Companies often brief several contingency firms on the same role, and those firms compete on speed, drawing mostly on candidates already looking.
A retained firm works the role exclusively and is paid in installments as the search progresses. That fee structure pays for research: building a map of every plausible candidate in the market and approaching people who aren’t job hunting. For C-suite roles, the strongest candidates are usually employed, performing well, and reachable only through direct outreach.
[Table 1]
When boards choose retained search
CEO succession is the most common case. U.S. companies announced 1,040 CEO exits in the first seven months of 2026, down 23% from the same period in 2025, and 114 of the departing CEOs were company founders, according to the Challenger, Gray & Christmas July 2026 CEO Turnover Report. Many of those searches run while the incumbent is still in the seat, so confidentiality matters as much as reach.
Outside CEO succession, the search usually follows a company event. Financing is the most common: a startup heading into a Series C or IPO preparation often needs its first full CFO, and investors size that person up at the first board meeting.
CTO and CMO searches tend to start when growth outruns the current leader. A founding CTO may want to return to product work once the engineering team reaches a few hundred people, and a marketing team built for early customers rarely hits the revenue target a board sets two years later.
A wrong hire at this level usually costs about a year, counting the months it takes to see the problem and the second search that follows.
How a retained search runs
Role definition and scorecard
Nobody calls a candidate until the board and CEO have agreed on what the new hire must deliver in the first 12 to 18 months.
Market mapping and outreach
The firm names the target companies first, then the people inside them. Most executives on a C-suite shortlist weren’t looking when the call came.
Structured assessment
Every finalist answers the same questions against the same scorecard. Without that, interview panels tend to pick whoever presented best on the day.
Referencing
References go beyond the names a candidate supplies. They include former board members, peers, and people who reported to the candidate, and they test specific claims, such as what a cost program actually saved or how long a product launch really took.
Offer and onboarding
Compensation, equity, and decision rights get settled before signing. The firm usually stays involved through the first 90 days, while the new executive’s priorities are still being set.
What each C-suite search tests
CEO
- Capital allocation judgment
- Ability to build and keep a strong senior team
- Operating cadence and accountability
- Credibility with customers, investors, and partners
CFO
CFO requirements change a lot by stage. A pre-IPO company needs audit readiness and public-market investor communication, while a growth-stage company needs forecasting discipline and fundraising experience.
- Forecasting accuracy and planning cadence
- Financing readiness and investor communication
- Unit economics, margins, and cash discipline
- Controls, risk management, and finance team leadership
CTO
CTO searches center on whether a candidate can scale both systems and teams.
- Architecture decisions such as build versus buy, and speed versus reliability
- Engineering cadence, prioritization, and roadmap discipline
- Hiring standards and senior engineering org design
- Security, reliability, and quality practices that hold up under growth
CMO
- Growth model design across channels and segments
- Positioning and category strategy
- Measurement, attribution, and budget discipline
- Ability to scale a marketing team
Retained search fees
Retained fees typically run 25% to 33% of the executive’s first-year cash compensation. Some firms include target bonus in that base and others use salary only, so the definition is worth checking in the engagement letter.
The fee is usually paid in three installments: at engagement, at a set point such as shortlist delivery or 30 days in, and at placement. Some firms quote a fixed fee instead. Expenses such as travel and assessment tools may be billed separately.
How to compare retained executive search firms
You’ll learn more from a firm’s recent work on roles like yours than from its brand. Useful questions:
- How many searches has the firm completed for this role, at this company stage, in this sector?
- Who will run the search day to day, and how much time will the lead partner spend on it?
- What does the market map look like, and can you see a sample?
- How are candidates assessed, and against what criteria?
- What happens if the placed executive leaves within the first year?
The AESC Global Guide to Choosing an Executive Search Firm, published by the trade association for retained search, covers the same ground in more detail.
When checking reviews or references, ask for clients whose situation matches yours: a CEO hire under a similar board structure, a CFO hired ahead of a financing, a CTO hired during rapid scaling, or a CMO hired against a stated growth target.
Frequently asked questions
What are the top retained executive search firms?
Firms boards most often shortlist for C-suite retained search include Christian & Timbers, Egon Zehnder, Heidrick & Struggles, Korn Ferry, Russell Reynolds Associates, and Spencer Stuart. The right choice depends on the role, sector, and company stage more than on firm size.
How much do retained executive search firms charge?
Retained fees typically run 25% to 33% of first-year cash compensation, paid in three installments. Contingency fees usually run 18% to 25% and are paid only on hire.
What is the difference between retained and contingency search?
A retained firm works exclusively on a role and is paid in stages as the search progresses. A contingency firm is paid only if its candidate is hired and often competes with other firms on the same role.
How long does a retained executive search take?
Most retained C-suite searches take three to six months from kickoff to signed offer. CEO searches and confidential replacements tend to take longer.
Which roles are best suited to retained search?
CEO, CFO, CTO, and CMO roles, along with other C-suite and SVP positions where the hire affects company strategy or investor confidence.
Companies planning a CEO, CFO, CTO, or CMO search can contact Christian & Timbers at hello@christian-timbers.com to discuss the role.