Question 1

What's the difference between contingency and retained search for executive search hiring?

Accepted Answer

Contingency firms earn a fee only when a candidate is hired, typically 20 to 30 percent of first-year compensation. Multiple agencies may compete on the same role. Retained search involves an exclusive contract with fees paid in installments regardless of outcome, usually one-third upfront, one-third at slate presentation and one-third at placement. For president, GM and functional head roles, retained arrangements dominate because they justify the deep market mapping, reference work and confidential outreach required. The exclusivity also prevents candidates from being simultaneously pitched by competing firms, protecting both employer brand and candidate relationships.

Question 2

What types of executive search roles do these recruiting agencies typically fill?

Accepted Answer

These firms conduct retained searches for C-suite positions including chief executive officers, presidents, chief financial officers and chief operating officers. They regularly recruit general managers, division presidents and business unit leaders with full P&L accountability. Practice also covers functional executives such as chief marketing officers, chief human resources officers, chief information officers and heads of supply chain, legal or corporate development. Most specialize in confidential succession planning and board-level appointments, handling compensation packages typically ranging from $250,000 to several million annually.

Question 3

Which executive search credentials carry the most weight with these agencies?

Accepted Answer

AESC membership signals a firm's commitment to ethical standards and professionalism in retained search. Certifications like CPC (Certified Personnel Consultant) and CSP (Certified Search Professional) demonstrate technical competence, though they're less universal at the C-suite level. What matters more is a recruiter's board service track record, industry recognition through awards like the Hunt Scanlon Top 50, and published thought leadership. The strongest credential remains verified placement history: documented success filling comparable roles in your sector, validated through references from past clients and placed candidates.

Question 4

What questions should I ask an executive search recruiter before signing a contract?

Accepted Answer

Ask about their off-limits policy and whether your competitors are current clients. Clarify the retainer structure—most charge one-third fees at search launch, candidate slate presentation and hire. Request their replacement guarantee terms if a placed executive departs early. Inquire about their research methodology for mapping talent in your sector and how they assess cultural fit beyond credentials. Confirm who owns the candidate relationships post-search and whether they'll poach your hire for another client. Finally, understand their average time-to-fill for similar roles at your organizational level.

Question 5

If I apply through an executive search recruiter, do I lose negotiating power on my offer?

Accepted Answer

No. Executive search firms on retained mandates work for the employer but have no stake in lowering your compensation. Their fee is set as a percentage of the position's budgeted range, typically one-third of first-year cash compensation, paid regardless of where you land within that range. In practice, seasoned search consultants often help calibrate realistic expectations on both sides and can provide market intelligence on comparable roles. You retain full ability to negotiate directly with the hiring company once an offer enters discussion.

Question 6

How do executive search firms handle conflicts of interest when multiple clients compete for the same senior talent?

Accepted Answer

Reputable retained firms enforce written off-limits agreements, preventing them from recruiting a candidate they've placed or presented within a defined period—typically 12 to 24 months. When two clients pursue the same executive, the firm that first engaged the candidate holds priority. Leading practices include maintaining detailed candidate databases to flag potential conflicts before search launch, obtaining client consent when gray areas emerge, and sometimes declining new assignments when conflicts prove irreconcilable. Firms with AESC membership follow published standards requiring disclosure of any relationship that could compromise objectivity or confidentiality in C-suite and VP-level searches.

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