What executive search costs in the UK
Retained executive search in the UK runs 25 to 33 per cent of first-year salary, billed in thirds, plus VAT. Contingency runs 15 to 25 per cent and is paid only on a placement. Most firms will not put those numbers on a page, which is the only reason this one does.
| First-year salary | Fee at 25% | Fee at 33% | Or, days of a fractional executive |
|---|---|---|---|
| £80,000 | £20,000 | £26,400 | 13 to 18 days |
| £100,000 | £25,000 | £33,000 | 17 to 22 days |
| £120,000 | £30,000 | £39,600 | 20 to 26 days |
| £150,000 | £37,500 | £49,500 | 25 to 33 days |
| £200,000 | £50,000 | £66,000 | 33 to 44 days |
The last column is the same money bought as days of a fractional CFO at the top of the published UK band, £1,500 a day. It is there because it is the comparison a founder actually makes, and because it argues against a search as often as for one.
What the fee actually buys
A search fee is not a finder’s fee. What you are paying for, when it is done properly, is a scope written down before anyone is approached, a map of the real market for that scope, direct approach to people who are not looking, assessment against the written standard rather than against a feeling, reference work that goes past the two names offered, and somebody managing the close so an accepted offer does not fall apart.
The parts that get skipped when a fee is cut are the map and the reference work, and both are invisible until the appointment fails. That is the argument for asking what the process is rather than what the percentage is.
Retained against contingency
Paid to run the search whether or not you hire, usually in three instalments. Exclusive, and the firm carries the mandate rather than the outcome alone.
Suits a seat that is hard to fill, senior, confidential, or where one wrong hire is expensive.
Paid only on a placement. The firm is usually working several similar roles and will move fastest where it is most likely to be paid.
Suits a visible market where speed matters more than depth, and where several firms competing is an advantage rather than a mess.
Nothing to start, 10% if you appoint, minimum £3,500, within 12 months of an introduction. A different product rather than a cheaper version of the same one.
The details that cost the most to leave unagreed
- The basis. Base salary, base plus bonus, or base plus bonus plus equity. The same percentage on the third basis can be tens of thousands more.
- VAT. Quoted inclusive or exclusive, and it is a fifth of the number.
- The guarantee. How long, what it covers, and crucially what voids it.
- Off-limits. Whether the firm is barred from approaching the people it places for you, and for how long.
- What happens if you do not hire. On retained, the instalments already paid are usually not returned. Know that before the first one.
Common questions
What is a typical executive search fee in the UK?
25 to 33 per cent of first-year salary for a retained search, billed in thirds, plus VAT. Contingency, where you pay only on a placement, runs 15 to 25 per cent. On a £150,000 seat the retained fee is £37,500 to £49,500.
What is the difference between retained and contingency search?
Retained means the firm is paid to run the search whether or not you hire, usually in three instalments, and works the mandate exclusively. Contingency means the firm is paid only on a placement and is usually working several similar roles at once. Retained buys attention and a defined process; contingency buys optionality and speed at the visible end of the market.
Is a search fee charged on base salary or total package?
It varies, and it is the single most expensive detail to leave unagreed. Base only, base plus bonus, and base plus bonus plus the value of an equity grant can differ by tens of thousands on the same appointment. Settle it in writing before the search starts.
What does an executive search guarantee usually cover?
Commonly a free replacement search if the appointment ends within a defined period, often three to six months, and commonly voided if the company makes the person redundant or changes the role. Read what voids it rather than what it promises.
Sometimes the answer is not a search at all
If the seat is part-time, or you are not yet certain it is permanent, a search is an expensive way to find out. Operator Search answers the same brief fractionally in five business days, and retained search is there when the seat is genuinely full-time. The calculator does the arithmetic on both.