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How does M&F determine fees?

Our fees are based 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. Once agreed upon the fee is fixed. There is no additional fee if the compensation offered the candidate hired is greater than the target compensation. 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.

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Why are fixed fees important to the client?

A fixed fee is important because it removes a major obstacle to trust and confidence between client and search firm. Under the traditional fee formula (percentage of actual compensation) other firms bill an additional fee if the compensation offered is higher than the original target. Our clients can be assured that our recommendations regarding candidates we present and our efforts during the negotiation phase have the client's best interest in mind, and not an ulterior motive of gaining a higher fee.

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Why is performance-based milestone billing important to the client?

Performance milestone billing is important because it assures our clients that we are invested in solving their problem. By tying fees to performance-based milestones, we only get paid when you see promised results. Our billing practice is our best assurance to our clients that we will work as quickly as we can to achieve the best possible results.

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What is the impact of target compensation on the fee?

If the package is marginally competitive, the search is more difficult since extra time and effort will be required to develop candidates within the client's constraints. Conversely, a competitive package tends to give us easier access to a broader range of prospects, typically including the strongest performers. Consequently, target compensation is a key factor in the difficulty of a search, and this is reflected in the fee.

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What happens if the search is cancelled?

The search may be cancelled at any time for any reason, simply by notifying us. On cancellation, 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 will bill the remaining fee balance if you hire a candidate we presented within one year of cancellation.

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What happens if we identify a candidate independent of the search?

The client has the option of either canceling the search or having us include the individual in the panel of candidates we evaluate and present. The advantage of the latter choice is that the individual will be thoroughly evaluated and reference checked and subject to the same off-limits policy and guarantee as a candidate we identified.

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