Fee Structure for Board and Advisory Search in the Unites States

Q: Why is the search fee not calculated as a percentage of compensation?

The remuneration structure of advisory boards and non-executive directors differs fundamentally from operational management roles: An annual retainer is customary, possibly supplemented by meeting components and, in some cases, equity components.This remuneration relates exclusively to the activities of the advisory board or non-executive director.The remuneration for the search mandate is independent of this. A percentage link between our retainer and the individual remuneration components of the mandate holder would not be objectively appropriate for board and advisory mandates.our retainer model is therefore based exclusively on the actual scope of the search and evaluation - not on the subsequent remuneration of the advisory board.

Q: When is the retainer determined?

The remuneration for the search mandate is transparently agreed and contractually stipulated before the mandate begins, and this early agreement creates predictability and a clear, binding basis for the collaboration.

Q: How are payments structured?

Billing is based on clearly defined process phases, with each milestone corresponding to a specific completed step in the search and evaluation process, and the due date is linked to the completion of the respective process phase - irrespective of the subsequent remuneration structure of the mandate holder.

Q: Are additional costs involved?

Additional expenses are only incurred if they have been expressly agreed in advance - for example, in the case of special external audits or special international requirements. in these cases, too, transparency and clear agreements form the binding basis for cooperation.

Mandate-based Board and Advisory appointments supporting U.S. operations.

Scope, structure, and fixed retainer are defined prior to launch of the search.

Board and Advisory searches follow a different economic logic than operational executive placements.

The fee model in the Board & Advisory Search takes this special feature into account. We explain the underlying mandate architecture and process logic in our Board and advisory search process for the USA.

Compensation for a Board member is typically structured around annual retainers and, in some cases, meeting fees or equity participation. A percentage-based search fee would not appropriately reflect that structure.

Board and Advisory engagements are therefore conducted on a fixed retainer basis, aligned with the scope and complexity of the mandate.

Retainer-Based Fee Model for Advisory Board and Non-Executive Director Search

The compensation structure of Advisory Board members and Non-Executive Directors differs fundamentally from that of operational executive roles. Board appointments are typically compensated through an annual retainer, sometimes complemented by meeting fees and, in certain cases, equity participation.

For this reason, linking search fees to a percentage of individual compensation elements is not appropriate in a Board or Advisory context.

Board and Advisory search engagements are therefore structured on the basis of a fixed retainer model. The fee for the mandate is agreed transparently prior to the launch of the search and reflects the specific scope, complexity, and governance requirements of the assignment.

This structure ensures an independent, mandate-based search process focused on identifying the most suitable board-level candidates rather than aligning incentives with individual compensation outcomes.

Structured Search Phases

Board and Advisory searches are executed in clearly defined phases.

Retainer payments are tied to completed stages of the search — not to compensation elements or the formal acceptance of the Board role.

Typical milestones include:

Each phase corresponds to a defined deliverable under the mandate.

Basis for Determining the Retainer

The fixed retainer is not derived from a compensation percentage. It reflects the structural complexity of the mandate and the scope of search and evaluation required.

Key factors include:

Strategic relevance of the appointment
International and cross-border governance context
Composition and dynamics of the existing Board structure
Level of discretion required
Depth of identification and evaluation

The retainer is agreed upfront and contractually defined before mandate launch.

This provides commercial clarity and a disciplined framework for execution.

Frequently Asked Questions About Board & Advisory Search Fees in the USA

Why is the search fee not calculated as a percentage of compensation?

Board members are typically compensated through fixed annual retainers, meeting fees, and, in some cases, equity participation. That compensation applies to the Board member’s mandate — not to the search engagement.

The search retainer is therefore structured independently and is based on the scope and complexity of the mandate, not on a percentage of the Board member’s compensation.

When is the retainer determined?

The fixed retainer is defined and contractually agreed before the mandate is launched.

This ensures clarity, predictability, and alignment from the outset.

How are payments structured?

Payments are structured around defined phases of the search, with each milestone tied to a completed stage of the mandate — not to the Board member’s compensation.

Are additional costs involved?

Additional expenses are incurred only with prior approval — for example, for external specialist reviews or specific cross-border requirements.

All additional costs are agreed before engagement.

Governance Decisions at Board Level

Board composition directly affects oversight, alignment, and long-term performance.

If you are considering a Board or Advisory appointment in the U.S. or North America, we are available for a confidential discussion to align mandate scope and retainer structure.

We respond personally and discreetly.