How Much Does An Interim Executive Cost?

How Much Does An Interim Executive Cost?

Once owners, board members and investors figure out exactly what an interim is and how an interim can help them, the next question is invariably, how much does an interim executive cost?

The short answer is: there is no off the shelf rate card for interim execs. Or more precisely, it doesn’t exist for the best interims in the world. There are a couple reasons rate cards don’t exist, at least not amongst our RED Team, an elite group of interim, project and fractional executives who have been selected because of their track records creating incredible results in companies.

Company Situations Vary Greatly, So Scope of Work is Always Unique
Your company is your baby and your baby isn’t like anyone else’s in the world. As such, the caliber of leader you need and the process and deliverables necessary to achieve the best outcome is a tailor-made solution – not an off the rack, one size fits all experience. We have talked to too many owners who are frustrated after shoveling out money to firms that in the end delivered a big binder containing pretty charts and templates, but no ability to execute. At InterimExecs we treat your situation as unique, and therefore put time and effort to match you with an executive right for you, as well as a tailor made comp plan.

You Can’t Get the Prescription Before Sharing Your Problem
A doctor wouldn’t give you a prescription or treatment plan before they hear out your symptoms. The same goes for an interim. When we set up a call with an interim exec, they immediately assess 1) what you want to accomplish; 2) what is needed to create a successful outcome for the company; and 3) if they are excited about the challenge and believe they can provide value. After they hear you out, we will put together a custom plan for you that defines time, commitment, and compensation. Any less than a thoughtful process means you’re likely going to get a mediocre result.

Interim and Permanent Executive Payment Structure Is Different
Contracts for interim executives are always short term in nature. Interims don’t sit comfortably on a fat paycheck, or have severance pay or benefits packages to fall back on as would routinely occur with permanent hires. As such the interim is always attempting to bridge the gap between where the company is currently performing at, and where it wishes to be. For an interim exec to be successful – going into engagements knowing they will not stay forever – they have to be excellent and prove to be valuable every day…or they’re gone. It’s that same kind of ingenuity, creativity and resourcefulness that comes out even before the first day of the engagement as interims ask themselves how they can best structure an assignment to create a successful outcome for company and executive alike.

The structure of fees can vary – hourly, daily, monthly, project based. Sometimes there is a performance bonus or even equity incentive if an interim is tasked with creating incredible growth in an organization.

Permanent executives lock in long term contracts with the goal of certainty in a confusing world. Interims are comfortable with the ambiguity of business outcomes and are more likely to make bets on themselves performing well.

If your company has particular needs, the specific fit with an interim executive can be quickly explored with the result of determining compensation that fits the best objectives of the company.