What does a VP or C-suite executive search actually cost? This page benchmarks fees across methodologies, explains the hidden costs most companies miss, and shows the ROI math on retained search.
Executive search costs vary significantly by methodology. Understanding the fee structure is the minimum; understanding the total cost of each approach — including search failure probability, vacancy duration, and replacement risk — is what the decision actually requires.
| Methodology | Fee Structure | Average Fee (on $300K comp) | Failure Rate |
|---|---|---|---|
| Self-managed (job boards, LinkedIn) | Platform costs + internal time | $5–15K + significant internal time | ~40% (no placement in 90 days) |
| Contingency search firm | 18–22% of first-year comp, paid on placement | $54–66K (if successful) | ~30–35% (no placement) |
| Retained search (industry) | 20–25% of first-year comp, structured payments | $60–75K | ~10–15% |
| Majhi Group retained | 20–25% of first-year comp, 3-part structure | $60–75K | <5% |
The retained search fee is the most visible cost in a VP or C-suite search. It is also, in almost every case, not the largest cost. The full cost of an executive search includes costs that most companies do not calculate when they are deciding whether to engage a retained firm.
A retained search that closes a VP Sales role in 41 days instead of the industry median of 75 days avoids 34 days of vacancy cost. On a $2.5M quota with a 12-person team, 34 days of avoided vacancy is worth approximately $230K in deferred revenue — against a retained fee of $65K. The ROI on the retained fee vs. timeline alone is approximately 3.5×. The replacement guarantee adds compounding value on top.
Retained search makes economic sense when the role has direct revenue or operational impact, the cost of vacancy exceeds the weekly equivalent of the search fee, and the risk of a failed or slow search outweighs the upfront fee commitment. For VP Sales, CRO, CTO, CFO, and COO roles at growth-stage companies, this is almost always true. The decision is not whether the fee is worth it — it is whether the alternatives cost less in total.
Sources & methodology: Majhi Group fee and placement data (25+ searches, 2022–2026); AESC Executive Search Industry Report 2025; Korn Ferry Executive Search Fee Benchmarks; LinkedIn Talent Insights.
Related benchmarks and resources:
Cost of Failed Executive HireSearch Timeline BenchmarksWhat Is Retained Executive Search?What Is Cost of Vacancy?Majhi Group Methodology20-minute confidential search assessment. We assess whether your search timeline, criteria, and approach are optimised for the hire you need.
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