Cleveland, OH

Fee Structure

Torch Group Executive Search Fee Structures

A highly personalized boutique executive search firm with a national marketing, communications, sales, and product management practice and deep experience in the foodservice, hospitality, food and beverage, consumer products, building materials, software, technology and industrial manufacturing industries, Torch Group prides itself on combining affordability with high value “white glove” services, unfailing attention to detail, and consistent high-quality results.

The Difference Between Engagement Fee, Contingency and Retained Compensation Models

Executive search fees, structures, and agreements are traditionally based on three types of executive search compensation types or models; retained, engagement fee, and contingency.

Torch Group typically performs retained searches. We are paid an up-front fee to recruit marketing, sales, product management, advertising, public relations, communications, and general management executives. Depending on the responsibility or leadership level of the position to be filled and the extent and uniqueness of its qualifications, our fee requirement can range from as low as 25% for an individual contributor to as high as 40% for a senior-level or C-suite executive.

Fee payments are typically structured to occur in three equal installments with the first payment due at the start of the engagement, the second after 30 days or when qualified candidates have been presented, and the final payment in 60-90 days or when the executive has been hired. Because we typically
recruit executive level candidates, such as C-suite leaders, executive VPs, Directors, and VPs of Marketing, Sales, Business Development, Brand Marketing, Product Marketing and Product Management, whole salaries can range from $100K to $200K, our retained search fees can vary from $30K to $60K.

An engagement fee model is used for specialist and management level searches. In an engagement fee model, we invoice one-third up front, with the balance due upon hire. Fees for an engagement fee model range from $20K to $25K based on salaries of $80K to $100K.

For specialist and management level searches, we use an engagement fee model, invoicing one-third of the fee up front, with the balance due upon the candidate’s hire. These fees can range from $20K to $25K based on the associated position salaries of $80K to $100K.

By contrast, in contingency search, fees are paid when the candidate accepts the position. Contingency search fees are typically 25% of the candidate’s first-year base salary.