Retained Executive Search Fee Structure
Supporting full market coverage, sustained senior involvement, and independent evaluation.
Choosing the Appropriate Search Model
When filling strategically relevant leadership positions, the search model directly affects decision quality.
Retained executive search is designed for situations where discretion, independence, and disciplined evaluation are essential. It ensures comprehensive market coverage and a structured comparison of candidates within the specific context of the role and organization..
For owners, boards, and senior decision-makers, this approach reduces decision risk and opportunity cost including operational disruption, reputational exposure, and long-term performance impact.
Structure of Our Fee Model
Our fee model follows established retained search standards and is aligned with clearly defined engagement milestones. It ensures that dedicated research capacity and sustained senior involvement are allocated exclusively to your engagement — from role calibration through onboarding.
Compensation is structured across four phases:
1
Engagement Launch
Covers role definition, alignment of expectations, and comprehensive market mapping of the relevant leadership segment.
2
Shortlist Presentation
Covers targeted identification, direct outreach, structured interviews, and independent senior evaluation of shortlisted candidates.
3
Contract Acceptance
Due upon signed employment agreement.
4
Start Date
Final installment due when the executive formally assumes the role.
This structure reflects the full lifecycle of the engagement and includes a clearly defined replacement commitment — underscoring our long-term responsibility for stable and sustainable leadership appointments.
When a Retained Executive Search Model Is Most Appropriate
A retained executive search model is most appropriate when leadership decisions carry material business impact, including:
- A vacancy in senior North American leadership where operational responsibility and reporting structures must be stabilized.
- Expansion, restructuring, or build-out of U.S., Canadian, or Mexican operations.
- Creation or replacement of strategically critical executive roles.
- Earnings-sensitive positions with direct impact on financial performance and enterprise value.
- Turnaround, transformation, or scaling environments requiring proven execution capability.
- Board or investor oversight situations requiring a robust and well-documented selection process.
- Succession scenarios where discretion and continuity are essential.
Scope of Services and Process Logic
Executive search at TH Bender is a senior-led advisory process — not a résumé forwarding service. We identify and discreetly approach accomplished executives who are successful in their current roles and not actively seeking change.
Each engagement begins with direct role calibration with shareholders, boards, or senior decision-makers. Responsibilities, reporting lines, and success criteria are clearly defined before market outreach begins.
We then conduct comprehensive market mapping and confidential outreach. Executives are evaluated through structured interviews led by experienced senior consultants. At least two senior consultants independently assess each finalist to ensure disciplined comparability and balanced selection.
Structured referencing supports reliable assessment and validation.
We remain involved through offer structuring and transition into the role, including guidance on U.S. compensation frameworks and onboarding alignment.
Basic questions on structure and fees in executive search
Why do you work exclusively on a retained basis?
Strategically relevant executive appointments require comprehensive market mapping, confidential outreach, and independent assessment by senior consultants.
These searches demand dedicated research capacity, senior-level involvement, and full-market coverage from the outset — long before a hiring decision is made.
A retained fee structure enables continuous investment in permanent search infrastructure. Executive markets evolve constantly — leaders change roles, organizations shift, and competitive landscapes adjust. Maintaining current and reliable market intelligence requires structural commitment rather than opportunistic scaling in response to short-term cycles.
For critical leadership roles, decision quality should not depend on contingency incentives or transaction-driven dynamics.
How is the total fee determined?
The total fee is defined individually based on:
- Scope and complexity of the role
- Geographic reach and competitive market conditions
- Anticipated total compensation level
Fee alignment takes place during the initial role calibration, prior to the formal launch of the search.
The structure reflects the required research intensity, level of senior involvement, and depth of evaluation necessary to support a disciplined leadership decision.
Why is the fee structured across four milestones?
The four-phase structure reflects the full lifecycle of a retained search — from initial role calibration through onboarding.
Each milestone corresponds to a clearly defined stage:
- Engagement launch and comprehensive market mapping — including finalized search strategy and introduction of the dedicated search team
- Presentation and confirmation of the shortlist following independent senior evaluation
- Execution of the employment agreement by both parties
- Commencement of the executive’s role
This structure ensures sustained involvement and accountability across all phases of the search — not merely until candidates are presented — thereby safeguarding disciplined execution and protecting the integrity of the leadership decision.
What happens if the search is paused, discontinued, or does not result in an appointment?
If a search is paused or discontinued due to internal changes or strategic shifts, the handling of fees follows the terms defined in the engagement agreement.
Completed milestones are generally payable, as they reflect work performed, project hours invested, and research capacity allocated exclusively to the search.
Our commitment is to dedicate the agreed research and senior resources through the delivery of a defined shortlist. That shortlist reflects both the search framework established at the outset and the realities of the external talent market.
As a focused retained firm operating within a defined leadership niche, we enter each assignment with a clear understanding of prevailing market conditions and communicate these transparently during the initial calibration phase.
If a search does not immediately result in an appointment, we review the situation together — assessing market feedback and role calibration — before determining appropriate next steps.
Our objective is a sound and sustainable leadership decision grounded in market reality and long-term organizational success.
What if we already have internal or externally sourced candidates?
We are pleased to include internal or externally identified candidates within the structured evaluation framework of the engagement.
A retained search ensures disciplined comparability across all relevant candidates — including those already known to the organization or introduced during the search.
All individuals are assessed against clearly defined role criteria, leadership expectations, and measurable success factors, providing an objective and well-documented foundation for a sound leadership decision.
The retained structure reflects the full scope of evaluation and market validation required to reach that decision, irrespective of the origin of individual candidates.
Does the engagement include a replacement provision?
Yes. Each engagement includes a clearly defined replacement commitment, as outlined in the engagement agreement.
This provision reflects our responsibility for stable and sustainable leadership appointments and underscores that our relationship and responsibilities extend beyond the signing of the employment agreement.
Our involvement continues through the executive’s transition, supporting effective integration and performance stability — reinforcing our shared commitment to a sound and durable leadership decision.
Are reference and background checks included?
Structured executive reference checks are an integral component of our standard process.
We conduct in-depth reference discussions aligned with defined role criteria, leadership expectations, and governance requirements. These conversations focus on leadership effectiveness, decision-making patterns, cultural alignment, and demonstrated execution capability.
Formal background checks — such as criminal, financial, or credential verification — are not included by default but can be arranged through specialized third-party providers in coordination with the client’s policies and applicable legal framework.
For certain critical leadership roles, successful completion of a formal background check may be required for the replacement commitment to apply. Where appropriate, we coordinate the process in a manner designed to preserve confidentiality — both externally in the market and internally within the organization, particularly in situations where team members may not yet be informed of the search or could become direct reports of the appointed executive.
How are travel expenses handled?
Transatlantic search mandates require personal meetings in certain phases. Travel costs are incurred in particular when candidates travel to interviews, when consultants accompany interviews on site or when appointments take place at the client's international headquarters.
Candidates submit a detailed travel expense report with corresponding receipts. The costs incurred are initially disbursed by TH Bender - usually from milestone payments already made - and then invoiced on a one-to-one basis and without surcharges after prior agreement with the client.
Billing is transparent, comprehensible and based on actual costs.
Discuss a Leadership Search
A confidential conversation is often the most effective first step when preparing for a critical executive appointment.
We respond personally and discreetly.
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