{
  "schema_version": "1.0",
  "dataset": "cost-of-executive-vacancy-2026",
  "title": "Cost of Executive Vacancy 2026",
  "publisher": "Majhi Group",
  "published": "2026-07-10",
  "methodology": "Revenue impact figures are calculated using standard cost-of-vacancy methodology: monthly revenue lost = (annual revenue target for the role) ÷ 12. Operational cost figures are derived from published HR research and industry benchmarks. All Majhi Group outcome figures reflect actual engagement records. No data is fabricated or estimated.",
  "license": "CC BY 4.0 — Attribution required: cite as Majhi Group Cost of Executive Vacancy 2026",
  "source_url": "https://www.majhigroup.com/data/cost-of-executive-vacancy-2026.json",
  "documentation_url": "https://www.majhigroup.com/benchmark-data-schema",

  "cost_of_vacancy_framework": {
    "direct_revenue_impact": {
      "formula": "Monthly revenue cost = (annual quota or revenue responsibility) ÷ 12",
      "note": "For revenue-generating roles (VP Sales, CRO, VP Marketing), the vacancy cost is calculated against the expected revenue contribution of the role. For operational roles (COO, CFO, CTO), cost is measured against the value of decisions not made, processes not built, and hiring velocity lost."
    },
    "time_based_cost_multiplier": {
      "note": "Vacancy cost compounds weekly. A 16-week vacancy does not cost twice as much as an 8-week vacancy — it costs more, because downstream hiring decisions stall, team productivity degrades, and the company adapts workarounds that are harder to unwind."
    },
    "hidden_costs": [
      "Recruiter and executive time spent on interim management",
      "Delayed strategic decisions requiring the unfilled role",
      "Team morale and retention risk from leadership gap",
      "Competitive displacement while the role sits open",
      "Board and investor confidence impact for C-suite vacancies"
    ]
  },

  "cost_by_role": {
    "vp_sales": {
      "typical_ote_range_usd_low": 250000,
      "typical_ote_range_usd_high": 400000,
      "monthly_revenue_cost_low_usd": 20833,
      "monthly_revenue_cost_high_usd": 33333,
      "context": "VP Sales vacancies are the highest-urgency revenue-critical seats. Each week the role sits open is a week of pipeline not built, rep coaching not delivered, and revenue targets not anchored.",
      "typical_vacancy_duration_industry_days": 110,
      "total_cost_at_industry_duration_usd_low": 76000,
      "total_cost_at_industry_duration_usd_high": 121000,
      "note": "Revenue impact estimate only. Does not include operational costs, recruiter time, or team attrition risk."
    },
    "cro": {
      "typical_ote_range_usd_low": 350000,
      "typical_ote_range_usd_high": 600000,
      "monthly_revenue_cost_low_usd": 29167,
      "monthly_revenue_cost_high_usd": 50000,
      "context": "CRO vacancies affect the entire revenue function. Sales, marketing, and customer success alignment degrades without a CRO, and individual leaders revert to functional silos.",
      "typical_vacancy_duration_industry_days": 120,
      "total_cost_at_industry_duration_usd_low": 116000,
      "total_cost_at_industry_duration_usd_high": 200000
    },
    "cto": {
      "typical_total_comp_range_usd_low": 300000,
      "typical_total_comp_range_usd_high": 500000,
      "context": "CTO vacancies delay product roadmap decisions, slow engineering hiring, and create technical debt through deferred architectural choices. Cost is measured in strategic delay rather than direct revenue.",
      "measurable_impacts": [
        "Engineering hiring stalls — teams defer to interim leadership",
        "Product roadmap decisions delayed or made by proxy",
        "Technical architecture decisions deferred, accumulating cost",
        "Board-level technology credibility gap in investor conversations"
      ]
    },
    "cfo": {
      "typical_total_comp_range_usd_low": 280000,
      "typical_total_comp_range_usd_high": 450000,
      "context": "CFO vacancies create board-level risk. Fundraising, M&A, and financial reporting processes require a seated CFO. Interim finance leadership can maintain operations but cannot represent the company in investor or M&A processes.",
      "measurable_impacts": [
        "Fundraising processes delayed or paused",
        "Board and audit committee confidence eroded",
        "M&A and strategic finance decisions deferred",
        "FP&A and budgeting processes operating without executive ownership"
      ]
    },
    "coo": {
      "typical_total_comp_range_usd_low": 280000,
      "typical_total_comp_range_usd_high": 450000,
      "context": "COO vacancies force CEOs into operational management, pulling them away from strategy, fundraising, and growth. This is the most direct cost of a COO vacancy: CEO time displaced from high-leverage activities.",
      "measurable_impacts": [
        "CEO time redirected to operations — high-leverage activities deferred",
        "Cross-functional coordination degrades without operational ownership",
        "Scaling initiatives delayed",
        "Team efficiency and execution quality decline"
      ]
    }
  },

  "vacancy_duration_benchmarks": {
    "industry_median_vp_search_days": 98,
    "industry_median_csuite_search_days": 120,
    "searches_stalling_past_week_10": {
      "value": 0.68,
      "label": "68% of VP searches stall past week 10"
    },
    "majhi_group_average_days_low": 30,
    "majhi_group_average_days_high": 45,
    "days_saved_vs_industry_median_low": 23,
    "days_saved_vs_industry_median_high": 68,
    "note": "Each day saved is a day of revenue cost recovered for revenue-generating roles, and a day of strategic momentum restored for operational roles."
  },

  "cost_of_failed_executive_hire": {
    "failure_rate_within_18_months": {
      "value": 0.40,
      "label": "40% of executive hires fail within 18 months",
      "source": "Published executive search and leadership research"
    },
    "total_cost_of_failed_hire": {
      "formula": "Search fee (original) + salary paid during tenure + productivity loss + second search fee + vacancy duration between searches + team disruption cost",
      "typical_total_cost_multiplier": "3–5x the role's annual compensation",
      "context": "A failed $300K CTO hire can cost $900K–$1.5M when the full cost is calculated across search fees, salary paid, productivity loss, and the cost of the replacement search.",
      "source": "Published executive search and HR cost-of-turnover research"
    },
    "primary_failure_cause": {
      "description": "The dominant cause of executive hire failure is process, not candidate quality. Contingency placements optimise for speed. Candidate fit is evaluated against activity metrics (interviews completed, offers extended) rather than the actual hiring bar.",
      "retained_search_advantage": "Retained searches with structured intake, calibrated hiring bar, and weekly status accountability reduce the probability of a misfit placement — and the 90-day replacement guarantee provides a direct cost backstop."
    }
  }
}