A retained search fee agreement is a document that outlines the terms and conditions between an executive search firm and a company or organization that is seeking to hire a high-level, executive position. This type of agreement specifies the fees that the search firm will charge for their services, the timeline for the search, and the responsibilities of both parties.
If you are a company that is looking to hire a new executive, it is important to have a clear understanding of the retained search fee agreement. This will ensure that you are aware of all the costs associated with the search, and that you are able to work effectively with the executive search firm.
Here is a sample of a retained search fee agreement:
1. Engagement
This agreement is between [COMPANY NAME] (the «Client») and [EXECUTIVE SEARCH FIRM NAME] (the «Search Firm»).
2. Scope of Engagement
The Search Firm will provide executive search services to the Client for the specific purpose of identifying, recruiting, and hiring qualified candidates for the position of [POSITION TITLE] within the Client`s organization.
3. Fees
The Search Firm will charge the Client a retainer fee of [AMOUNT] upon execution of this agreement. The retainer fee is non-refundable and will be credited towards the total fee charged by the Search Firm upon successful completion of the search.
The total fee charged by the Search Firm will be [AMOUNT] or [PERCENTAGE]% of the candidate`s first-year total compensation, whichever is greater. The fee will be due upon the candidate`s acceptance of an offer of employment from the Client.
4. Search Timeline
The Search Firm will provide the Client with an estimated timeline for the search process. This timeline will be based on the availability of qualified candidates and the Client`s hiring needs.
5. Responsibilities of the Search Firm
The Search Firm will conduct a thorough search for qualified candidates and will present a shortlist of candidates to the Client for consideration. The Search Firm will also conduct initial candidate interviews and reference checks, and will assist with the negotiation of compensation packages.
6. Responsibilities of the Client
The Client will provide the Search Firm with all necessary information regarding the position, including job description, compensation range, and desired qualifications. The Client will also provide timely feedback to the Search Firm regarding the shortlisted candidates and will make hiring decisions in a timely manner.
7. Termination
Either party may terminate this agreement at any time upon written notice. The Client will be responsible for all fees incurred up to the termination of the agreement.
In conclusion, a retained search fee agreement is a vital document that outlines the responsibilities and expectations of both the executive search firm and the client. By having a clear understanding of this agreement, the client can ensure a successful search process and a smooth hiring process.
