The Definition of a Counter-Offer
A counter-offer occurs when a VP or C-suite candidate, having accepted a new role, informs their current employer of their resignation and is subsequently offered increased compensation, a title change, additional equity, or other incentives to remain. Counter-offers are one of the most common reasons executive searches fail at the close stage — and one of the most preventable.
The reason counter-offers are so disruptive is that they arrive at the highest-stakes moment of the search: after the candidate has been identified, assessed, shortlisted, interviewed, selected, and made an offer. A counter-offer that succeeds means the entire process — including the client's time and the retained fee in many cases — produces no hire.
Why Counter-Offers Succeed
The candidate was not truly committed to leaving
Candidates who accept a new role without a clear reason to leave — beyond compensation — are vulnerable to counter-offers. If the primary driver is salary, the current employer can often match it. If the driver is genuine: growth, autonomy, new challenge — counter-offers rarely succeed.
The search firm did not surface the candidate's real motivation
Understanding why a candidate is genuinely considering a move is assessment work. It should happen in the first substantive conversation, not at offer stage. A candidate who says "I'm open to opportunities" without a specific reason to leave is not ready to close.
The offer did not address the candidate's priorities
A counter-offer succeeds when the new offer is weaker on the dimensions that matter most to the candidate. Equity structure, title, remote flexibility, reporting relationship — these are as important as base salary for senior leaders.
Counter-Offer Reality
"We surface the counter-offer risk in the second conversation, not the last one. If a candidate cannot articulate a specific reason why they are genuinely ready to leave — beyond compensation — we are transparent with the client about the risk before the search advances."
How Majhi Group Manages Counter-Offer Risk
Counter-offer prevention is built into the Majhi Group process from the first substantive candidate conversation. Understanding motivation, surfacing the candidate's specific reasons for moving, and managing the resignation conversation directly are all part of the engagement. The 90%+ offer acceptance rate reflects how thoroughly counter-offer risk is managed before an offer is ever made.