Search Support Expenses
We work on a client-retained basis only. We base
our fees on the nature and difficulty of the search,
including such factors as level of the position, competitiveness
of the compensation package, difficulty of identifying
and attracting prospects, expected impact on the client's
business, time and effort required of our consultants,
plus other factors unique to each assignment.
The average fee is about one-third of the annual
cash compensation of the executive hired. Once
agreed upon, the fee is fixed. No additional fee is
due should the offered compensation be higher than the
original target. We reserve the right to discuss additional
fees if the search specifications change substantially
from those originally agreed upon, or if the search becomes
protracted for reasons beyond our control.
The Fee Is Billed In Four Installments Tied To Performance
The First fee installment is billed at the outset
of the engagement and is payable when we have developed
a mutually agreed upon Recruitment Profile for the project
(normally completed within the first or second week).
We bill the Second fee installment when we present
a detailed Research Report. (This normally occurs within
three to six weeks of the beginning of the search.)
We bill the Third fee installment when we have
presented written reports on an Initial Panel (typically
three to five) of qualified candidates. (This normally
occurs within two to four weeks of the second fee billing.)
We continue to recruit and introduce additional candidates
until the search is completed.
The Fourth fee installment is billed when a
Candidate is hired or 60 days after the third fee installment,
whichever occurs first.
If a candidate is hired before the second or third fee
installments have been billed, the remaining portion of
the fee will be billed immediately. If the search is canceled,
we bill a prorated portion of the next fee installment
that would normally have been billed, based on a thirty
day period from the date of the most recent fee installment.
We believe it is more equitable to bill actual expenses
required to support each search than to allocate expenses
using an overhead formula. Expenses billed to each client
are the actual costs associated with our work for that
client. Search support expenses include telephone, on-line
services, data entry, typing, postage, messenger services,
copying and entertainment. Search support expenses typically
range from 5-15% of the fee, depending on the level, nature
and difficulty of the assignment. An expense estimate
that will not be exceeded without prior approval is provided
at the beginning of each engagement. We do not
apply administrative surcharges or undocumented administrative
fees. With regard to expenses, our books are totally open
to our clients.
We also bill for consultant and candidate travel. Travel
is a vital component of executive search, as there is
no substitute for personal contact in assessing a candidate's
total qualifications and fit with our client's requirements.
Although we can accomplish a great deal by telephone,
and despite the promise of video-conferencing and other
new technologies, the best prospects typically become
candidates only after a face-to-face meeting. Carrying
our client's message to these individuals, who are usually
not looking for a job, is one of the primary values of
executive search. We normally reimburse candidates directly
for travel expenses and then bill these costs to our client.