Fee Structure and Standard Terms of Business
Consistent with industry standards, Leadership Capital Group charges a fee of one-third (33 1/3%) of the first year’s total cash compensation required to attract a successful candidate, including the first year’s base salary and any sign-on or performance-based incentive/bonus (at target level) negotiated as part of the compensation package for individuals introduced by our firm to any client. Except where otherwise agreed upon in writing in advance, this fee applies for any candidate introduction for 24 months from the date of such introduction. For candidate introductions not specifically addressed in one of our retained search engagement letters of confirmation (LOC), invoices are normally raised shortly after the date of offer acceptance and are due and payable within forty-five (45) days.
For retained search engagements, Leadership Capital Group structures milestone-based interim retainer payments based on the position’s estimated total cash compensation. The retainer amount is determined by using an estimate of the projected total compensation of the successful candidate and applying the corresponding one third fee as a multiple. These retainer payments are normally invoiced in three equal installments, with the first retainer payable upon search commencement, and the second invoiced approximately 30 days after the first retainer, but not be billed until an initial slate of three to five candidates is introduced. The third retainer is invoiced 30 days following the date of the second retainer. These interim fee payments constitute a minimum fee, but are considered fully applicable against the total fee due following a hire.
In the event that a candidate introduced by Leadership Capital Group is hired by our client as a consultant rather than as a full-time employee, a different fee schedule applies. In this instance, Leadership Capital Group charges 33 1/3% of monthly contractor payments less any retainer fees which have been invoiced and paid that were directly associated with a search engagement.
Our standard fee for the introduction and recruitment of outside Directors to a client organization is $150,000 for any company with revenues of $1 billion or more; $100,000 for mid-sized companies with revenue between $250 million and $1 billion; $75,000 for companies with revenues between $75 million and $250 million; and $50,000 for companies with revenues less than $75 million. The standard fee for an advisory Board member is $50,000.