What Is Executive Search?
Your company needs a new CEO. Or a CFO to lead your financial transformation. Or a CTO to build your tech vision. These aren’t roles you post on LinkedIn and hope for the best.
Executive search is a specialized recruitment process designed to find, assess, and place senior leaders (C-level executives, VPs, directors). It’s fundamentally different from standard recruitment.
Executive Search vs. Standard Recruitment
| Aspect | Standard Recruitment | Executive Search |
|---|---|---|
| Timeline | 6-12 weeks | 10-16 weeks (longer, more thorough) |
| Candidate pool | Active job seekers + passive | Mostly passive candidates (not job hunting) |
| Source | Job boards, ads, applications | Direct networking, industry relationships |
| Screening | Automated (ATS) | Manual, expert assessment |
| Assessment | Skills + culture fit | Leadership ability, vision, fit with board |
| Confidentiality | Standard | Highly confidential (often role not public) |
| Cost | 15-20% of first-year salary | 20-25% of first-year salary (or retainer) |
| Decision criteria | Manager satisfaction | Board/executive team alignment |
| Who conducts | Internal HR or recruiter | Specialized executive search firm |
Key difference: Standard recruitment finds people looking for jobs. Executive search finds exceptional leaders who aren’t looking, but might be open to the right opportunity.
Why Executive Search Is Different
The Challenge of Hiring Executives
When you hire a manager, you lose productivity. When you hire an executive, you lose strategic direction.
At the executive level:
- The stakes are higher. A CEO hire can make or break the company. A bad CFO can destroy financial controls. A weak CTO can cripple technology strategy.
- The talent pool is smaller. There are thousands of project managers; there are hundreds of qualified CFOs in Malaysia.
- Passive candidates dominate. Exceptional executives aren’t scanning job boards. They’re running companies, building their networks, excelling in current roles.
- Discretion matters. You often can’t announce “CEO search underway” (spooks investors, destabilizes company, competitors circle). The search must be confidential.
- Experience is deep. You need someone with 15+ years in role, success in similar industry, experience scaling from X revenue to Y revenue.
- Culture fit is critical. Executives shape culture. Hiring the wrong cultural fit creates board friction, misalignment with strategy, team resentment.
Why Standard Recruitment Fails for Executives
- Job boards don’t work. Top executives aren’t checking job postings.
- Applicants are typically weaker. People actively job hunting may have been fired, passed over for promotion, or leaving toxic environments (red flags).
- You need insider knowledge. “Who’s the best CFO in Malaysian fintech?” Requires industry expertise and networks. General recruiters don’t have this.
- Speed matters, but quality matters more. A bad executive hire can cost millions. Better to take 14 weeks and get it right than 6 weeks and hire wrong.
This is why executive search exists. Specialized firms have:
- Industry networks (relationships with top talent)
- Executive-level assessment skills (can evaluate leadership potential, not just resume credentials)
- Confidentiality protocols (discreet searches)
- Experience with complex negotiations (competing offers, equity compensation, board alignment)
The Executive Search Process: How It Works
Executive search isn’t magic. It’s a structured, methodical process. Here’s how it works:
Phase 1: Needs Definition (Week 1-2)
What happens:
-
Initial briefing (4 hours across 2 meetings)
- Meet with board/CEO to understand needs
- What’s the strategic vision for this role?
- What does success look like (first 100 days, year 1)?
- What problems is this person solving?
- What culture/values matter?
- What’s the “walk away” scenario (deal-breaker attributes)?
-
Create the profile (detailed document)
- Role responsibility breakdown
- Required experience (industry, company size, specific skills)
- Preferred experience (nice-to-have but not required)
- Compensation range (salary, bonus, equity)
- Reporting structure (who do they report to?)
- Success metrics (what does Year 1 success look like?)
-
Competitive landscape analysis
- Who are similar companies’ leaders?
- What’s the market paying?
- Where are candidates typically coming from?
- What’s realistic timeline for this role?
Why this matters: Many executive searches fail because the company is unclear on what they actually need. A brilliant CFO who’s great at scaling might be terrible at cost-cutting. A visionary CEO might lack operational rigor. Clarity upfront prevents hiring the wrong person brilliantly.
Phase 2: Sourcing & Outreach (Week 3-8)
What happens:
-
Build target list
- Identify 50-100 potential candidates
- Sources: Industry networks, LinkedIn, professional associations, board connections, competitor intelligence
- Example: “CFOs at fast-growing Malaysian fintech who’ve scaled from RM 50M to RM 200M revenue”
-
Direct outreach
- “We’re not recruiting you; we’re researching the market”
- Position is confidential but intriguing
- “Would you be open to a conversation about an interesting CFO opportunity?”
- Many say “no,” but some say “I’m happy; but tell me more”
-
Qualify candidates
- Initial phone screen (30-45 min)
- Assess background, current satisfaction, interest level
- Screen out those who are obviously wrong fit
- Typically: Contact 50 → Phone screen 15 → Move forward 5-8
-
Background research
- Deep dive on promising candidates
- LinkedIn analysis, news articles, industry reputation
- Reference calls (confidential, with candidate permission)
- Verify claims, assess leadership reputation
Timeline: This phase takes 4-6 weeks. Most executives need time to think and warm up to opportunity.
Phase 3: Presentation & Interview (Week 9-12)
What happens:
-
Present candidates to company
- Executive summary for each (1-2 page profile)
- Why we believe they’re strong fit
- Key strengths & potential concerns
- Career trajectory & achievements
-
First round interviews
- CEO or board member meets candidate (1-2 hours)
- Assess strategic fit, vision alignment, chemistry
- Candidate learns about company, challenges
- Both sides evaluate fit
-
Second/third round interviews
- Deeper conversations with board/executive team
- Scenario-based questions (“How would you handle X crisis?”)
- Team chemistry assessment
- Financial acumen check (for CFO, etc.)
-
Reference checks
- Call previous board members, CEOs, peers
- Assess leadership style, crisis management, team development
- Uncover blind spots or red flags
Typical timeline: 2-4 week interview process for executive role
Phase 4: Offer & Negotiation (Week 13-16)
What happens:
-
Board decision
- Full board alignment on candidate
- Clear on offer structure (salary, bonus, equity, benefits)
- Understanding of expectations
-
Offer strategy
- Present offer to candidate
- Address equity compensation (often larger piece for executives)
- Discuss start date, notice period with current employer
- Explore any flexibility (role scope, compensation structure)
-
Negotiation
- Candidate may counter on salary, equity, role scope
- Company may need flexibility on start date (30-60 day notice)
- Search firm negotiates on behalf of both parties
-
Close
- Offer letter signed
- Background check, reference checks finalized
- Onboarding prep begins
Timeline: 2-4 weeks typical
Total Executive Search Timeline: 12-16 Weeks
- Weeks 1-2: Needs definition
- Weeks 3-8: Sourcing & outreach (longest phase)
- Weeks 9-12: Interviews & assessment
- Weeks 13-16: Offer & close
Note: Fast-track searches (urgent) can compress to 10-12 weeks. Slower searches (extremely selective) can extend to 18-20 weeks.
When Should You Use Executive Search?
Executive search is expensive and time-intensive. Don’t use it for every hire. Use it when:
Use Executive Search When:
1. The role is strategic or high-stakes
- CEO, CFO, CTO, COO, CMO (board-level roles)
- VP of critical function (VP Engineering if tech company, VP Sales if growth-dependent)
- Cost: Role impacts company direction, culture, financial health
- Decision: If hire affects strategy → Executive search
2. You need passive candidates
- Internal talent is limited
- Active job market doesn’t have right person
- You need someone from specific competitor or company
- Decision: Can’t find person via job posting → Executive search
3. The hire is urgent but needs to be right
- Role opened unexpectedly (CEO left, CFO poached by competitor)
- You need someone in 8-12 weeks (faster than typical executive search, but not as fast as standard recruiting)
- Can’t afford to get it wrong
- Decision: Urgent + high-stakes → Executive search
4. Confidentiality is critical
- CEO search (board doesn’t want market knowing)
- Expansion into new geography (don’t want competitors knowing)
- Strategic role (industry knowledge needed, don’t want to alert competitors)
- Decision: Can’t announce publicly → Executive search (confidential outreach)
5. Role is highly specialized
- You need specific expertise (someone who’s scaled SaaS from $10M to $100M)
- Someone who’s navigated specific regulatory environment
- Industry expertise is non-negotiable
- Decision: Specific expertise needed → Executive search
Don’t Use Executive Search When:
1. Role isn’t senior enough
- Director or individual contributor (even senior IC)
- VP-level, but not strategic (support function)
- Use standard recruitment instead
2. Market has active candidates
- Role is common (finance manager, HR manager, sales manager)
- You can find qualified people via job posting
- Use standard recruitment instead
3. It’s not urgent
- You have 6+ months to hire
- Can afford to do it slowly, carefully
- Standard recruiting with internal recruiting is fine
- Use standard recruitment instead (save the cost)
4. Budget is tight
- 20-25% of salary is significant cost
- Limited recruiting budget
- Can’t justify expense
- Use standard recruitment instead (or shortlist from network yourself)
Executive Search Costs in Malaysia
Executive search is expensive. Here’s what to expect:
Fee Structure
Typical model:
-
Retainer fee (upfront): 30% of total fee
- Paid upfront to start search
- Covers access to network, research, outreach
- Non-refundable (committed to search)
-
Success fee (upon placement): 70% of total fee
- Paid when candidate accepts offer
- Contingent on successful placement
-
Total fee: 20-25% of first-year cash compensation (salary + target bonus)
Real-World Examples (Malaysia Market):
| Role | Salary | Bonus | Total Comp | Search Fee (20-25%) |
|---|---|---|---|---|
| CFO (RM 300K salary) | RM 300K | RM 60K | RM 360K | RM 72K-90K |
| CTO (RM 250K salary) | RM 250K | RM 50K | RM 300K | RM 60K-75K |
| CEO (RM 400K salary) | RM 400K | RM 100K | RM 500K | RM 100K-125K |
| VP Engineering (RM 200K salary) | RM 200K | RM 40K | RM 240K | RM 48K-60K |
| CMO (RM 180K salary) | RM 180K | RM 36K | RM 216K | RM 43K-54K |
Is It Worth the Cost?
Yes, if:
- Role impacts company direction (CEO, CFO, CTO)
- Cost of bad hire >> Cost of search
- Bad CEO: Could cost millions (wrong strategy, wrong market, wrong team)
- Bad CFO: Could destroy financial controls
- Bad CTO: Could cripple tech infrastructure
- You need specialized expertise (not available via standard recruiting)
- Urgency requires acceleration
Calculate the ROI:
- Cost of search: RM 75K
- Cost of bad hire: RM 500K+ (year 1 lost productivity, team disruption, replacement)
- Cost of no hire: RM 200K+ (lost revenue/productivity from open role, team burnout)
- Value of right hire: RM 2M+ (better strategy, team development, business growth)
ROI = (Value of right hire - Cost of search) / Cost of search
Example: (RM 2M - RM 75K) / RM 75K = 25x ROI
Worth it.
How to Choose an Executive Search Firm
Not all executive search firms are equal. Here’s how to evaluate:
Red Flags (Avoid These):
❌ Promises fast executive search (“We’ll find your CEO in 4 weeks”)
- Real executive search takes 12-16 weeks
- Anyone promising faster is likely cutting corners
❌ Generic approach (“We’ll post your role and source candidates”)
- This is standard recruiting, not executive search
- Executive search requires confidential outreach, networks, deep assessment
❌ Hasn’t placed in your industry (“We’ve never hired a CEO in tech, but we can try”)
- Industry expertise matters
- Your CTO needs someone who understands tech market, challenges, landscape
❌ No references or track record (“Trust us on this one”)
- Ask for 3-5 past placements in similar role
- Call them; verify the hire worked out
Green Lights (Good Firms):
✅ Industry specialization (“We specialize in CEO search for SaaS companies in Southeast Asia”)
- Deep networks in your industry
- Understands your market, challenges, opportunities
✅ Case studies & references (3-5 past placements; happy to provide)
- Ask: “Who have you placed as CFO in last 2 years?”
- Call them; get real feedback on process, candidate quality, outcomes
✅ Transparent process (Clear timeline, fees, what to expect)
- Explains each phase
- Sets expectations upfront
- No surprises
✅ Post-placement support (“We check in at 30, 60, 90 days to ensure success”)
- Invested in outcome, not just fee
- Helps executive onboard, integrate with team
✅ Replacement guarantee (“If the executive doesn’t work out in 12 months, we search again free”)
- Confident in assessment
- Aligned with your success
Malaysia-Specific Executive Search Insights
The Malaysian Executive Market
Talent pool characteristics:
- Smaller than Singapore: Singapore is regional hub; top talent often lured to Singapore (higher pay, stock options, international exposure)
- Age demographic: Executives in Malaysia tend to be older (40-55) vs. global (35-50)
- Expat presence: Many CFOs, CTOs in Malaysia are expats or returnees from Singapore
- Industry concentration: Many executives clustered in KL/Selangor; regional towns have shallower pools
Market dynamics:
- Poaching is common: Singapore companies actively recruit Malaysian executives (40-50% salary bump typical)
- Equity compensation less common: Malaysian companies use cash compensation more than equity; top talent craves equity (upside)
- Board diversity: Growing pressure for female executives, diverse boards (creating opportunity for underrepresented talent)
Timeline Expectations by Role in Malaysia
| Role | Typical TTH | Difficulty | Notes |
|---|---|---|---|
| CEO | 14-18 weeks | Very hard | Board alignment takes time; often involves expat candidates (visa) |
| CFO | 12-16 weeks | Hard | Fintech CFOs easier to find; manufacturing CFOs harder |
| CTO | 10-14 weeks | Medium-hard | Tech market smaller; Singapore talent often preferred target |
| CMO | 12-16 weeks | Medium | Smaller talent pool; often recruited from Singapore |
| COO | 12-14 weeks | Medium | Operations expertise valued but scarce |
| VP Engineering | 10-12 weeks | Medium | More available than C-level but still competitive |
Salary Benchmarks (2025 Malaysia)
| Role | Salary Range | Typical Bonus | Equity (if startup) |
|---|---|---|---|
| CEO | RM 350K-600K | 30-50% | 0.5-2% |
| CFO | RM 280K-450K | 25-40% | 0.2-1% |
| CTO | RM 250K-400K | 20-35% | 0.2-1.5% |
| CMO | RM 200K-350K | 20-30% | 0.1-0.5% |
| COO | RM 250K-400K | 25-40% | 0.2-1% |
| VP Engineering | RM 180K-300K | 15-25% | 0.1-0.5% |
Note: Startups typically offer lower base salary + more equity. Established companies pay higher base + lower/no equity.
Key Takeaways
-
Executive search is different from standard recruiting. Don’t treat them the same.
-
Use it when stakes are high. CEO, CFO, CTO = executive search. Manager role = standard recruiting.
-
Timeline is 12-16 weeks. Plan accordingly. Rushing executive search leads to wrong hire.
-
Cost is significant (20-25% of salary) but justified. ROI is positive if you hire right.
-
Industry expertise matters. Choose a firm that knows your industry.
-
Confidentiality is critical. Board/leadership need to control narrative, not have search leak.
-
Passive candidates are the real opportunity. Best executives aren’t job hunting. Good search firms access them.
-
Post-hire support matters. Executive onboarding is critical. Good firms help here.
-
Red flags are real. Bad-mouthing previous employers, job hopping, vague achievements = concerns.
-
This is your most important hire. Take time, get it right. An executive shapes your company.
Ready to Start an Executive Search?
Hiring a C-suite executive is one of the most important decisions you’ll make. Getting it right matters.
Book a Free Executive Search Consultation — We’ll discuss your search needs, timeline, market challenges, and whether executive search is the right approach.
Weizhen Recruiters specializes in executive search across tech, finance, healthcare, and manufacturing. Our average executive search timeline: 12-14 weeks (faster than industry average). Our placement success rate: 95%+, with 98% retained at 12 months.
