What executive search costs in 2026.
Retained search at 25 to 35 percent of first-year comp, typically $50K to $250K, plus 20 to 30 hours of leadership time on top. The process is multi-month, exclusive, and high-touch. Here is the full breakdown.
Why executive search is a different model.
Senior and C-suite hires are sourced via retained search, which is a fundamentally different model from contingency or RPO. You engage one firm exclusively, pay them in thirds over the search, and get dedicated researcher time on the engagement. The firm commits to delivering a shortlist within 4 to 6 weeks and putting its reputation behind the placement.
The economics only work because retained is exclusive. An agency cannot dedicate researcher time to a search they might not win (as in contingency), so the retainer structure gives them the certainty they need to commit resources. In exchange, they quote a premium: 25 to 35 percent of first-year total compensation vs 15 to 25 percent on contingency.
Pricing by compensation level.
Retained fees scale with compensation but most firms cap the percentage at 33 to 35 percent and apply a minimum fee at the low end. The result is a smooth curve from $60K minimum to $280K+ on CEO searches.
| Total compensation | Retainer % | Minimum fee | Typical total |
|---|---|---|---|
| $200,000 | 30% | $60,000 | $60,000 |
| $275,000 | 30% | $75,000 | $82,500 |
| $350,000 | 30% | $75,000 | $105,000 |
| $500,000 | 33% | $100,000 | $165,000 |
| $650,000 | 33% | $125,000 | $214,500 |
| $800,000+ | 33% to 35% | $150,000+ | $240,000+ |
What the fee includes.
200 to 500 potential candidates identified, qualified, and prioritised before outreach begins. This is the researcher-intensive phase and the reason retained firms cost more.
A named researcher on the engagement, with weekly progress updates. Not a shared resource. This is what the kickoff fee buys you.
Scheduled weekly progress calls, shortlist delivery by agreed date, finalist interviews within agreed windows. Accountability, not just best-efforts.
Typically 3 to 5 qualified finalists within 4 to 6 weeks. If the firm cannot deliver, the kickoff fee is refunded or applied to a different engagement.
The firm provides market data on comp packages for the shortlisted candidates, which is often the most valuable input for offer negotiation.
Most engagements include a 180-day replacement clause: if the hire leaves or is terminated, the firm reruns the search at no additional fee. Longer guarantees are negotiable.
Milestone payment structure.
Retained fees are paid in thirds. The structure protects the firm against client drop- off mid-search and protects the client against non-performance.
| Milestone | Timing | Fee fraction | What it buys |
|---|---|---|---|
| Engagement kickoff | Week 0 (at signing) | 1/3 of total fee | Market mapping and initial researcher time |
| Shortlist delivery | Week 4 to 6 | 1/3 of total fee | 3 to 5 qualified finalists with profile briefs |
| Placement | On offer acceptance | 1/3 of total fee | Final close, references, compensation benchmark |
Some firms offer alternative structures for senior clients: 50 percent at kickoff with a larger placement fee, or 25/25/50 for engagements where early market mapping is lighter. Negotiate the structure to match your cash flow.
Timeline: 90 to 120 days typical.
| Weeks | Milestone | What happens |
|---|---|---|
| 0 to 4 | Market mapping | Researcher builds candidate list, initial outreach begins |
| 4 to 8 | Shortlist development | First interviews, shortlist of 3 to 5 delivered by week 6 |
| 8 to 10 | Finalist interviews | In-person or video finalist rounds with hiring team |
| 10 to 12 | References and deep diligence | Reference calls, comp benchmarking, offer preparation |
| 12 to 14 | Offer and close | Offer negotiation, counter-offer management, signed contract |
| Post-placement | Check-ins | 30, 60, 90-day post-hire touchpoints from the firm |
Alternatives to retained search.
Economically viable at 3+ executive hires per year. Builds institutional knowledge and network. Most useful in growth-stage companies doing a VP buildout.
Works well for one-off hires where the CEO has the relationships. Scales poorly and tends to produce biased shortlists. Common for early-stage C-suite hires.
Fills the seat while you run a proper search. Used when the vacancy cost of waiting 90 days is prohibitive. Common for CFO and COO roles during transitions.
Cheapest path. Requires succession planning to work. Highest-performing orgs promote 60 to 70 percent of VP-and-above roles internally.
In-house interview cost on top of the fee.
Even with a retained firm handling sourcing, the hiring company spends substantial time on finalist interviews. For a VP or C-suite hire, expect:
- →CEO or COO: 3 to 5 hours per finalist across interviews and references
- →CFO: 1 to 2 hours for comp reasonableness and quota discussion
- →C-suite peers (2 to 4): 1 to 2 hours each for panel and cross-functional fit
- →Board members (2 to 3): 1 hour each for CEO and regulated-industry roles
- →Potential direct reports (4 to 6): 3 to 5 hours total for team-fit interviews
- →References (3 to 5 calls): 3 to 5 hours of hiring team time
Total internal time: 20 to 30 hours. At senior-loaded rates ($150 to $300 per hour), that is $4,000 to $9,000 of internal interviewer time on top of the retained fee. For a CEO search with full board participation, internal time can reach 50+ hours and $15,000 in leadership time cost.
Use the calculator with role level 'executive' to model retained search fee against internal time.