Executive recruiting is one of the most consequential investments a board or CEO can make. The decision to bring in a new leader, whether a CEO, CFO, CHRO, or CMO, sets the trajectory for growth, culture, and strategy. Yet many directors still approach pricing discussions with uncertainty.
Understanding how executive recruiting firms structure their fees is critical not only for budgeting, but for evaluating the value a firm delivers. In a market where leadership mistakes can cost millions, clarity around retained search firm pricing and the models used by the top retained search firms has become essential.
The Dominant Pricing Models in Executive Search
While individual firms vary, most rely on three established models:
1. Retained Search
- The most widely used model for board and C-suite hiring.
- Typically structured as a percentage of the executive’s first-year cash compensation (often 25–33%).
- Fees are split into three equal installments: at engagement, when candidates are shortlisted, and upon placement.
- Retained search provides exclusivity: the firm commits its full resources to a single client and role.
This approach is common among the top retained search firms, as it allows for deeper candidate evaluation, broader market coverage, and higher accountability.
2. Contingency Search
- Payment is due only when a hire is made.
- More common at mid-management levels, not senior executives.
- While lower risk in terms of upfront spend, it often sacrifices depth of evaluation and market reach.
3. Project or Flat Fee
- Some firms experiment with fixed pricing tied to deliverables.
- Useful for market mapping, compensation benchmarking, or volume hiring.
- Rarely used for senior executive roles, where the stakes require a retained search approach.
Why Retained Search Firm Pricing Commands a Premium
Boards often ask why retained search firm pricing is higher than contingency or project-based models. The answer lies in the nature of the work:
- Market Reach: Retained firms invest in long-term relationships with passive candidates not visible through job postings.
- Assessment Depth: Candidates are evaluated through scorecards, references, and cultural alignment, not just resumes.
- Board-Level Partnership: Retained firms provide advice on compensation design, onboarding, and succession planning.
- Exclusivity: Unlike contingency recruiters who may represent multiple clients for the same candidate, retained firms dedicate resources exclusively to one client at a time.
The higher fee reflects this combination of rigor, confidentiality, and trust.
The True Cost of the Wrong Hire
When considering top retained search firms pricing, it is essential to balance fees against the potential cost of failure. A mis-hire at the executive level can cost 5–15x annual salary when factoring in:
- Severance and replacement costs
- Strategic delays
- Team turnover
- Lost investor or market confidence
Seen through this lens, search firm pricing is not simply a cost of hiring — it is an insurance policy against catastrophic leadership failure.
Factors That Influence Executive Search Pricing
Not all searches are equal. Pricing can vary based on:
- Role Complexity: CEO searches with global P&L responsibility are priced higher than functional leadership roles.
- Industry Regulation: Highly regulated industries (financial services, healthcare, defense) require more due diligence.
- Geography: Searches in talent-scarce markets command additional effort and resources.
- Assessment Tools: Use of proprietary analytics, leadership scorecards, or psychometrics may add value to the process.
Boards should ask not just what the fee is, but what is included in the process.
Transparency and Trust in Pricing
One of the major differences between average firms and the top retained search firms is transparency. Leading firms explain clearly how fees are structured, what services are covered, and how progress will be reported. This allows boards to make apples-to-apples comparisons between providers.
Transparency also reduces risk. When firms explain how they calculate retained search firm pricing, it signals accountability and confidence in their process.
Christian & Timbers’ Approach
At Christian & Timbers, our pricing model is designed to align with client success, not transactional outcomes. We provide:
- Clear Retainer Structures: Payments aligned to milestones, not vague timelines.
- OnPoint Scorecards: Evidence-based assessment of leadership capability and cultural fit.
- Market Maps: Comprehensive visibility into both active and passive candidate pools.
- Board-Ready Reporting: Transparency into candidate quality, references, and benchmarking.
By combining rigorous process with transparency, our approach ensures that pricing reflects not only the cost of a search, but the long-term value of securing the right leader.
Looking Ahead: The Future of Pricing Models
As boards become more sophisticated buyers of executive search services, we expect to see:
- Greater use of value-based pricing, where fees are tied to leadership outcomes.
- More data-backed justification of pricing, with analytics on candidate pipelines and benchmarking.
- Increased demand for pricing clarity from the top retained search firms, especially for global board and CEO searches.