Why Equity-for-Services Changes the Executive Search Equation - Aligning Incentives for Everyone Involved
When you’re building a company, every key relationship raises the same fundamental question: Does this partner win only when we win, or do they get paid either way?
Most executive search firms operate on the latter model. They collect their fee (typically 25–35% of the executive’s first-year compensation) and move on. Whether that hire becomes a superstar or underperforms is largely outside their financial concern.
At Andcor, we do things differently. We invest a significant portion of our fees back into the companies we partner with through equity-for-services. This isn’t a gimmick, it’s a deliberate structural choice that aligns incentives across the board: the company, the candidate, Andcor, and all shareholders.
The Incentive Problem in Traditional Executive Search
Even retained search firms have some skin in the game through placement guarantees, repeat business, and referrals. But the majority of their compensation is earned at placement, not sustained success.
This creates subtle pressure to close searches efficiently rather than obsess over long-term fit. For emerging-growth companies, where one bad executive hire can be extremely costly, this misalignment matters.
What Equity-for-Services Actually Means
Instead of (or in addition to) a traditional cash fee, we accept equity in your company as part of our compensation, typically equivalent to 25-50% of our standard fee.
This is not “we’ll take 2% of your company.” It’s a fair exchange for services rendered, similar to how many elite software development firms, specialized legal counsel, and strategic advisors operate.
Why This Model Changes Everything
Deeper, more rigorous searches: When we have equity on the line, we dig deeper into cultural and strategic fit.
Longer-term partnership: Our involvement doesn’t end at placement. We have a reason to stay engaged through onboarding and future scaling.
Stronger signal of confidence: We’re willing to tie our compensation to your success, not just the transaction.
Who This Model Is Right For
This approach works best for companies with real momentum, credible traction, and strategic leadership hires (CFO before Series B/C, CTO rebuilding culture, etc.).
It’s ideal for leaders who value long-term alignment over purely transactional efficiency.
Questions Worth Asking Any Search Firm
How is your compensation structured, and what happens if a placed executive leaves early?
Do you have any financial stake in the long-term success of your clients?
How many active searches are you running simultaneously?
The answers reveal whether a firm is truly aligned with your success.
A Better Model for Sustainable Growth
In today’s environment, sophisticated founders and boards are increasingly focused on aligned incentives. Equity-for-services creates a true partnership where the search firm, the company, and the candidate all succeed together.
At Andcor, this model isn’t new, it’s how we’ve operated for over 30 years.
Curious whether equity-for-services is the right model for your next leadership hire?
Reach out directly to ty@andcor.com or visit our equity-for-servcies. No pressure, no obligation, just a thoughtful conversation.