Updated September 2026
Hiring a CTO or VP of Engineering through a contingency recruiter typically costs 20 to 25% of first-year base salary, which is $40,000 to $50,000 for an illustrative $200,000 hire. Retained executive search firms set their own percentage and usually bill in instalments during the search. Funded.club charges a fixed fee agreed upfront, which is $15,900 to $21,900 for roles above $150,000.
For a technical leadership hire, the total fee is only half of the cost question. The other half is timing, meaning how much you have already paid if the search stalls, the shortlist is weak, or you decide halfway through that you need a VP of Engineering rather than a CTO. Each fee model answers that differently, and it is worth knowing the answer before you sign.
The total fee for a $200,000 technical leader
We used an illustrative base salary of $200,000. Swap in the number you plan to offer, and remember that percentage fees rise if the offer does.
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Retained firms are left off the chart because their terms vary from firm to firm. Ask each one for its percentage, what counts as compensation, and how the instalments are split, then add it to the comparison yourself.
Three models side by side
| Retained search | Contingency | Fixed fee (Funded.club) | |
|---|---|---|---|
| How the fee is set | Percentage of compensation, quoted by the firm | Usually 20 to 25% of first-year base | Fixed amount agreed upfront, from $4,900 to $21,900 |
| When you pay | Instalments during the search | In full once the hire is made, often on the start date | Advance at kick-off, balance when the offer is accepted |
| If the search stalls | Instalments already paid are typically kept | Nothing is owed until someone is hired | Claim the advance back if no shortlist of 3 qualified candidates within 30 days |
| If the offer rises | Fee usually rises with it | Fee rises with it | Fee stays the same within the band |
| Who runs the search | A search team, often with a partner leading | Varies, and recruiters may work the role alongside others | One dedicated recruiter, end to end |
None of these is right for every company. Retained search suits a board-level appointment where a formal, confidential process matters. Contingency can suit roles that several firms can fill quickly. A fixed fee suits a founder who wants one accountable recruiter and a known number before the search starts.
When the money leaves your account
The timing diagram below is the part most founders skip. With retained search, a large share of the fee can be paid before you have met a candidate you would hire. With contingency, you pay nothing until the end, but recruiters may give a role more or less attention depending on how many firms are working it.
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Funded.club sits between the two. You pay an advance at kick-off, with the balance due when your candidate accepts. If we don't deliver a shortlist of at least 3 qualified candidates within 30 days, you can claim the advance back in full, and first-time customers can ask to defer it until they see their first candidates.
CTO or VP of Engineering first
Decide this before you brief anyone, because it changes who you are looking for. A CTO typically owns the technical direction and often still writes code in an early team. A VP of Engineering owns delivery, hiring and management as the team grows. Many startups need the second role more than the first, especially when a founder already holds the technical vision. Our guide on how to hire a CTO for a startup goes deeper on the difference.
Where Funded.club fits
We are a fixed-fee recruiting partner for funded startups and fast-growing teams across North America, Europe and APAC. We've helped 500+ startups from Seed to Series D, including engineering and leadership hires.
Our fees average 6 to 9% of salary and are agreed before the search starts. One dedicated recruiter runs your search end to end, from sourcing and headhunting to screening and support through the offer. You will see first screened candidates within 7 days, and the average time from kick-off to hire across our searches is 33 days. Full bands are on our pricing page.
Frequently asked questions
How much does it cost to hire a CTO through a recruiter?
Contingency recruiters usually charge 20 to 25% of first-year base salary, so a $200,000 CTO costs $40,000 to $50,000. Retained firms quote their own terms. Funded.club's fixed fee for roles above $150,000 is $15,900 to $21,900.
What is the difference between retained and contingency search?
Retained search is paid in instalments while the search runs, so part of the fee is spent whether or not you hire. Contingency is paid only when someone is hired. Funded.club uses a fixed fee split into an advance and a balance on offer acceptance.
Can I get my money back if a leadership search doesn't work out?
That depends on the contract. With Funded.club, if we don't deliver a shortlist of at least 3 qualified candidates within 30 days, you can claim the advance back in full.
Should a startup hire a CTO or a VP of Engineering?
Hire a CTO if you need someone to own technical direction. Hire a VP of Engineering if the direction is set and you need someone to build and run the team that delivers it.
Worth a brief chat about your next hire? Book a free call.
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