Insights · Executive search

How does a managing director search work, and how long does it take?

How a managing director search works and how long it takes: phases, realistic timelines, common delays and how retained search fees are structured.

By David Ertler · 10 November 2026 · 5 min read

Anyone looking for a managing director usually asks two questions first: how does it work, and how long will it take? This article sets out the phases of an executive search, realistic timelines, the most common causes of delay and how the fee is structured. It is written for owners, advisory boards and supervisory boards appointing a managing director for the first time or replacing one.

Why an advertisement is rarely enough

Most people who could run your company are not looking for a job. They are running another one. A job advertisement mainly reaches those who already want to move. That can work, but at managing director level it is the exception.

Then there is confidentiality. An advertisement makes the search public, to customers, suppliers and your own workforce. For an owner preparing a succession, or a board planning to replace a sitting managing director, that is often not what they want.

Executive search therefore relies on direct approach: the firm identifies people in relevant roles and contacts them in confidence. The AESC, the global professional association for executive search, describes this as an exclusive, advisory mandate.

Broadly, there are four ways to find a managing director: your own network, an advertisement, a contingency recruiter or a retained executive search. The network is quick and familiar but rarely produces a genuine comparison. An advertisement reaches active job seekers. Contingency recruiting works best for roles with many available candidates. Executive search is designed for cases where the right people are committed elsewhere and the search needs to stay confidential.

The phases and how long they take

The timelines below describe our own process, as set out on our page The executive search process. Other firms work in a similar way, though they divide the phases differently.

1. Mandate briefing and market analysis (days 1 to 3). Profile, role, reporting line, pay framework and timeline are discussed and tested against the market. The result is a briefing confirmed in writing. It becomes the yardstick for every later assessment.

2. Market mapping and direct approach (days 4 to 14). Target companies and roles are defined, suitable people identified and approached. With us, the first qualified profiles are usually available within 14 days of the briefing.

3. Structured assessment (weeks 3 to 5). Interviews against the criteria in the briefing, supplemented by psychometric assessment where needed.

4. Shortlist (weeks 5 to 8). Usually three to five candidates, each with a dossier covering motivation, interview findings, pay expectations, reference status and a written assessment.

5. Decision and offer (weeks 8 to 12). Meetings with owners and boards, references, pay benchmarking, offer and negotiation.

From briefing to signed contract typically takes 10 to 14 weeks, roughly three months. The AESC puts it more broadly: depending on the position and the availability of talent, a successful search can take anywhere from a few weeks to several months.

After the signature

Once the contract is signed, the new managing director has to serve notice with their current employer. Under section 20 of the Austrian Salaried Employees Act, an employee's notice period is one month to the end of a month unless otherwise agreed. By contract it can be extended to up to six months, which is common for senior executives. Managing director contracts outside the Act, and contracts in Germany, follow whatever notice period has been agreed.

In practice, six to nine months often lie between briefing and first day. If you realise in the autumn that a change is coming next summer, you are not starting too early.

What slows a search down

Direct approach itself is rarely the bottleneck. Delays more often originate inside the company:

The profile changes mid-search. After the first interviews it turns out that owners and board have different ideas. The search then starts again.
The pay framework does not match the market. This often only becomes apparent in conversations with candidates. The later it surfaces, the more it costs.
Board calendars. If the advisory board meets quarterly and no interview dates have been set aside, the search loses weeks.
Slow feedback. The AESC explicitly advises clients to respond quickly to presented candidates and to schedule interviews promptly. A drawn-out selection process reflects badly on the company.
Unresolved internal candidates. If there is an internal candidate, include them in the comparison from the start.
Counter-offers. Good candidates are often asked to stay. That conversation belongs before an offer is drafted.

What the company should prepare

The clearer the starting point, the shorter the search. Before the briefing, these points should be settled:

Who makes the final decision: owner, shareholders' meeting, advisory board or supervisory board?
What must the role deliver in its first two years, and which powers come with it?
What pay framework is realistic, including bonus, company car and pension?
Are there internal candidates, and how will they be included?
What must stay confidential, and who inside the company knows about the search?
Which interview dates with the board are already fixed?

The AESC also recommends that clients agree the timeline and key milestones with the firm and have all relevant parties sign off the search strategy and position specification. How owners can prepare the search for their first managing director from outside the family is covered in our article The first managing director from outside the family.

How the fee is structured

With retained search you engage one firm exclusively and pay for the search process, not only the outcome. According to the AESC, fees are generally structured as a retainer with payments at set times or milestones. Instalments are usually due when the mandate starts, at the shortlist and at signature. The amount is either based on the target compensation of the role or agreed as a fixed fee.

The agreement should also cover expenses, what happens if an internal candidate is chosen, and a replacement rule for the probation period. These points are explained in our articles Contingency or retained search and What a headhunter costs in Austria.

With us, a named partner leads every search personally, based on a written mandate briefing with a timeline. If you are preparing a managing director search, you can book an initial conversation or write to us via the contact form.

My point: how long a managing director search takes is largely decided before the first person is approached. Settling the role, the framework and the decision path beforehand saves more time than any firm can make up in the market.

Frequently asked questions

How long does a managing director search take?

From briefing to signed contract, an executive search typically takes 10 to 14 weeks. The new executive's notice period comes on top: in Austria one month under the Salaried Employees Act, or up to six months by contract. Six to nine months between briefing and first day is therefore common.

What does a headhunter cost for a managing director role?

In retained search the fee is paid in instalments, usually at the start, at the shortlist and at signature. The amount is based on the role's target compensation or agreed as a fixed fee. Expenses and replacement terms should be set out in the agreement.

Can an internal candidate take part in the process?

Yes, and they should from the start. An internal candidate is assessed against the same criteria as external ones. This gives the board a fair comparison and the candidate a decision they can understand.

Does a managing director role in Austria have to be advertised publicly?

Not for private companies. Companies subject to audit by the Austrian Court of Audit must advertise the position publicly under the Stellenbesetzungsgesetz. There, direct approach can complement the advertisement but cannot replace it.

Sources

Confidential first conversation