SAMPLE of Success Fee Structure
Chief Medical Officer
Likely Base Salary $275 K
Search Conducted at 30% of First Years Base Salary
Success Fee Structure Traditional Retained Fee Structure Initial
payments based on 2/3 of Likely Base: $181.5K Initial payments based
on Likely Base: $275K Fee Initial Payment Calculate From: $54,450
Fee Initial Payment Calculated from: $82,500 Payment at Start of
Search: $18,150 Payment at Start of Search: $27,500 Payment at 30
days: $18,150 Payment at 30 days: $27,500 Final Payment when
position is filled: $46,200 Final Payment when position is filled:
Retained search fee agreement:
Joseph Associates, Inc. is pleased to offer the professional
services of our firm in regards to the identification and
recruitment of an individual to assume the responsibilities of
---------- for -----------.
TERMS AND FEES
As a retained executive search firm, Joseph Associates, Inc.
conducts executive search assignments under the following terms and
Consistent with the executive search profession, our fees
are non-contingent and are thirty (30) percent of the first year
Integrated in our fee structure is a Success Fee, which
limits the client risk and rewards the efforts of Joseph
Associates, Inc. upon the successful completion of the search
effort. Our fee will initially be based on two-thirds of the
estimated base salary. This reduced fee will be invoiced in
one-third (1/3) increments at search commencement, and thirty
days from search commencement.
The Success Fee is defined as the commission earned for the
difference between the first two payments and thirty percent of
the actual base compensation. This final payment is due on the
official start date of the executive at your firm. All invoices
will be submitted in U.S.
dollars and will be paid in U.S. dollars.
See Exhibit A of Search Proposal for an example · Additional
placements will be billed at 25 percent of first year base
Joseph Associates, Inc. is reimbursed for our out-of-pocket
expenses and disbursements such as long distance telephone
calls, candidate travel, interview travel, etc. Any expenditure
is discussed with and agreed to by the client prior to its
occurrence. We will submit monthly invoices for itemized
All bills are due and payable upon presentation and the
payment of fees and expenses are not contingent upon the
placement of a candidate with your organization, except when
final performance payments apply.
You are free to discontinue an assignment at any time by
informing us to that effect. You would, however, remain
responsible for the sums set forth in the billings presented
prior to our receipt of your notice of discontinuance, as well
as for any final expenses as of the date of notification.
GUARANTEES & LIABILITIES
Executive Search is a management consulting activity that may or may
not result in the hiring of an executive. Therefore, it is
misleading to guarantee that a position will be filled as the
inevitable conclusion of an executive search consulting assignment.
At the same time, it is appropriate that Joseph Associates does
commit to introduce to its client a minimum of three to five
qualified candidates for consideration on each assignment. We will
conduct initial reference checks, verify academic credentials, and,
to the best of our ability, confirm all factual statements regarding
the candidate’s history and record of accomplishments.
In addition, it is appropriate for the client to understand the
firm’s policy about unusual situations. For example:
If a candidate leaves their new position as a result of
involuntary termination within a period of ninety days, Joseph
Associates will restart and execute a replacement search,
charging applicable out-of-pocket expenses only.
We work to completion on each search, unless mid-course
changes are judged to be so significant that, in reality, a
brand new search has been initiated. Billing and expense
adjustments may be justified at that time.
We observe the laws in force relating to employment in each of the
countries and jurisdictions in which we work. Joseph Associates,
Inc. refers quality candidates without regard to race, color,
religion, sex, sexual preference, age, national origin, or