When a CEO suddenly resigns or is unable to stay in his or her role for any reason, companies are left with only a few choices. They can either promote a senior C-level executive (the next highest position) or bring in an interim executive to serve as the CEO in the meantime. If it’s the latter, then the next question is, how much does an interim executive cost? are interim CEOs expensive?
There isn’t an exact price or range when it comes interim ceo jobs. This is because a permanent CEO or executive will have notable differences compared to their interim counterparts.
What is the Interim CEO Salary?
The actual cost of an interim executive salary will depend on several factors. This includes the interim’s level of experience in the industry, their qualifications, the complexity of the role they’ll enter, the size of the company, and more.
For one, the price structure might be different for an interim CEO than that of a permanent CEO. Company CEOs have a more permanent salary, a set amount that’s given to them every month. Their annual salary is fixed as they are expected to invest in the role for the foreseeable future. On the other hand, an interim CEO might have agreed to a fixed contract for the duration of their stay. It’s also possible that they get paid monthly or per hour depending on what’s discussed. There are instances where an interim CEO can get an incentive, such as a performance bonus, if they do exceptionally well.
You can, however, estimate the costs it takes to hire an interim CEO through research. Sending inquiries to interim services, search firms, or industry publications can give you a rough idea of how much to pay for interim CEO jobs.
How Does an Interim CEO Work?
Companies without CEOs will have to find a suitable replacement one way or the other. Most will take the longer path and vet the right CEO rather than make hasty decisions. In the void left by the absence of their previous CEO, companies might need to get the services of interim CEO.
An interim CEO will have the industry experience and skillset to immediately jump right in and take the reins. While they’re considered temporary, an interim leader can be a source of stability and a quick morale boost to an organization. There are many things they can do- assume the responsibilities of a CEO, assess the current status quo, recommend changes, and communicate closely with board members or stakeholders.
When Your Company’s Future is On The Line
Interim CEOs can be more than just temporary executives in an organization. They can be lifesavers to turn a business around and set it down the correct path in line with the company’s vision.
It’s best to hire an executive interim service that has years of experience in your industry. A good interim CEO will not only provide stability but also leave the company better than it was several months or a year ago.