Executive Search 101 - Part 1: Why Top CFO Roles Are Hidden (And How They're Really Filled)
This article marks the beginning of Executive Search 101, a comprehensive six-part miniseries. In this foundational first part, we address the core principles of the field. Subsequent installments will explore the complexities of the contemporary landscape, examining key industry players, the standard search process, and ongoing evolutionary trends.
The vast majority of roles at a senior level (c. £150k+) aren't publicly advertised. They exist within what's often termed the "hidden job market," accessible primarily through one channel: executive search.
The Retained World: Exclusivity is Key
Unlike the contingency recruitment you might encounter for more junior roles (where multiple agencies race to fill a position, often paid only on success), senior executive mandates operate almost exclusively on a retained basis.
What does this mean?
Exclusive Mandate: A single executive search firm (often referred to as 'headhunters') is appointed by the hiring organisation to fill that specific role. They are paid a significant fee to dedicate resources to finding the best possible candidates.
Your Sole Route: For potential candidates, this means that the appointed search firm is your only route onto the shortlist for that particular opportunity. You won't see the same role advertised by multiple firms.
Discretion is Standard: During my 15 years working within executive search, focusing on these senior appointments, I never once posted a role publicly. This isn't unusual; it's the norm.
Why the Secrecy? Unpacking the Rationale
This preference for discretion isn't arbitrary. It serves several critical functions for both the hiring company and the search firm:
Avoiding the Deluge: Publicly advertising a high-profile, high-paying role invites a flood of applications. Many will be unsuitable, yet managing this volume diverts the search team from their core task: proactively identifying and engaging the right, often passive, candidates.
Maintaining Confidentiality: Senior hires are often sensitive. There might be an incumbent executive unaware they are being replaced, or the role could be linked to confidential strategic initiatives (M&A, transformation) that the company doesn't want to signal prematurely. Retained search allows this process to happen under the radar.
Protecting Exclusivity & Process Integrity: The search firm has been retained to run a thorough, objective process. Advertising the role opens the door for rival recruitment firms (or even internal contacts) to approach the client directly with speculative candidate suggestions, potentially undermining the structured search methodology the client is paying for.
A Strategic Investment: Fees, Time, and Resources
The retained model signals a significant strategic commitment from the hiring organisation. The fee structure reflects this:
Typically, fees equate to around one-third of the role's total guaranteed first-year compensation (basic salary, fixed bonus/allowances).
This fee is usually paid in three instalments: an upfront retainer to initiate the search, a second tranche upon presentation of the candidate shortlist, and the final payment when an offer is formally accepted.
This investment justifies a deep, resource-intensive process. A typical search mandate spans four to eight weeks just to produce the shortlist, with the entire process often taking considerably longer. Behind the scenes, this involves at least one senior Consulting Partner leading the engagement and strategy, supported by one or more dedicated Researchers meticulously mapping the market and identifying potential candidates.
What This Means for You
Understanding this hidden, retained market is crucial for any senior finance professional considering their next move. These high-stakes roles aren't filled by chance applications; they are sourced through focused, discreet, and highly networked processes conducted by specialist firms.
But who are these firms? How do they differ? And most importantly, how do they really decide who makes the shortlist in this opaque environment? We’ll lift the lid further on the key players and the intricate search process in our upcoming articles.
