The short answer
Both fill an empty finance leadership seat, but they solve different problems. An executive search firm looks for a permanent hire and is paid for the search – it delivers a candidate and leaves. Interim management provides a fixed-term appointment and is paid for presence and results – the person works rather than being introduced.
The mistake is rarely the choice, it is the timing. In our experience a search takes three to six months to a signed contract, plus the candidate's notice period – and in Germany that notice period is commonly three to six months for a senior finance role. If you need finance leadership now, a search has not solved anything.
The comparison at a glance
| Executive search | Interim CFO through nugrow | |
|---|---|---|
| Cost and model | Fee as a share of the target annual salary, 27 percent on average; usually in instalments, one-off. Then the running payroll cost | Day rate by days worked, CFO from €1,800 excluding VAT; ends with the mandate |
| Time to start | In our experience three to six months to a signed offer, plus notice period | First profiles usually within 24 hours, start a few days after selection |
| Selection and quality control | Market search, interviews, references; the company decides | Pre-selection from a network with known track records; the company decides |
| Contract and bogus self-employment | Employment contract with the company; no status question | Service contract or employee leasing, settled before signing; the status question needs checking |
| Liability and risk | Employee liability under labour law; a mis-hire is the company's risk, replacement promises are a matter of contract | Liability under the contract; cover in case of absence and replacement in the opening window are fixed contract terms |
| When it fits | Permanent role, time for the search | Vacancy from now, bridge, fixed-term special assignment |
Two cost logics that do not compare
Executive search bills a share of the target annual salary. According to the industry study of the German Association of Management Consultants (BDU), the fee recently averaged 27 percent of target income; 25 to 33 percent is the usual range, often in three instalments over the process. At a CFO salary of €160,000 that is €40,000 to €53,000 – one-off, regardless of what the person delivers afterwards. Then the running payroll cost from day one.
Interim management bills per day. The average across all functions is €1,317 according to the DDIM market study 2026; for finance leadership the rate is usually higher. At €1,400 to €2,500 and two to three days a week, the monthly cost sits between roughly €12,000 and €32,000 – and it stops when the mandate stops. The ranges by role are on the pricing page.
"Expensive versus cheap" is the wrong comparison. The useful question is: what does it cost to leave the seat empty for another four months? A late close, a missed covenant deadline or a funding round without reliable numbers usually costs more than both routes together.
The question that is almost never in the proposal
When a provider places an interim manager, the margin sits between what the manager receives and what the company pays. Providers who disclose it quote a 25 to 40 percent uplift.
That is not improper – selection, contract, liability and cover cost something. What is improper is not saying so. So every proposal should be met with one question: is the quoted day rate the final price, and what does it include? Travel, placement fee, cover in case of absence, handover effort.
When which route holds
| Starting position | Route that fits |
|---|---|
| The role is permanent and there is time | Executive search |
| Finance leadership is missing as of now | Interim management |
| The successor is found but starts in four months | Interim management as a bridge |
| A fixed-term special assignment – exit, carve-out, system change | Interim management |
| Unclear which profile the role actually needs | Interim first, then search – the requirements become concrete along the way |
The last row is the one that gets overlooked. Many companies advertise a CFO role before they know what the role actually has to deliver. An interim mandate settles that as a by-product – and the job description is better afterwards.
When nugrow is not the best choice
- The role should be filled permanently and there is time: executive search is the more direct route. An interim mandate first only pays off if the gap would otherwise cost money.
- What matters most is cultural fit for years: commitment to the company grows in a permanent role, not in a fixed-term mandate.
- Budget is tight and the situation is calm: a day rate over months can cost more than a one-off fee. Run the numbers with the cost comparison on the pricing page.
- The role is outside finance: nugrow fills finance roles; for other functions a broader firm is the better address.
Both together is the normal case
In practice the routes do not exclude each other. The most common sequence: interim CFO from now, executive search running in parallel for the permanent hire, handover to the successor at the end of the mandate. That is exactly how the B2B distribution case was cut: five months of interim with a defined end, because the permanent CFO was already identified. How interim compares with platforms and direct engagement is covered in Interim provider, freelancer platform or direct.
The only condition is that the handover is part of the brief from the start. How to check that is in CFO handover and vacancy. To talk it through: contact or the interim CFO page.
A note for readers outside Germany
Two German specifics shift the calculation. Notice periods for senior hires are long, so the gap between a signed offer and a first day is measured in months, not weeks – which is why the bridge scenario in the table comes up so often. And an interim finance leader can be engaged as a contractor or formally appointed as managing director (Geschäftsführer); the two carry different liability and registration consequences, which is a contract question rather than a search question.
Frequently asked questions
What is the difference between executive search and interim management?
Executive search looks for a permanent hire and is paid for the search. Interim management provides a fixed-term appointment and is paid for presence and results. In our experience a search takes three to six months to a signed hire; an interim mandate starts a few days after selection.
What does an executive search cost for a CFO role in Germany?
On average 27 percent of the target annual salary according to the BDU, typically 25 to 33 percent, often in three instalments. At a target salary of €160,000 that is roughly €40,000 to €53,000 one-off, plus the running payroll cost from the first day.
How large is the placement uplift with an interim provider?
Providers who disclose it quote 25 to 40 percent between the interim manager's rate and the price to the company. The decisive question is whether the quoted day rate is the final price and what it includes.
Is an interim CFO more expensive than a permanent hire?
Per day yes, per task often not. A mandate runs three to twelve months with no recruiting cost, no onboarding loss and no fixed cost afterwards. The calculation depends on duration and workload, not on the day rate.
Can executive search and interim management be combined?
That is the normal case: interim CFO from now, executive search in parallel for the permanent hire, handover to the successor at the end of the mandate. The handover has to be part of the brief from the start.
Is employee leasing an alternative?
Employee leasing (Arbeitnehmerüberlassung) is a separate legal framework in Germany with a licence requirement and an 18-month cap. For a leadership role on a fixed term it is usually not the right construct – more in the glossary under employee leasing and in contract and bogus self-employment.
Read on
- Interim CFO, CFO as a service or permanent hire – the three models compared.
- Interim provider, freelancer platform or direct engagement.
- Finding an interim CFO – selection and criteria.
- Interim CFO in the glossary.
- Pricing – day rates, workload-based budgets, worked example.
- References – twelve mandates with brief, scope and outcome.
Sources and status
Executive search fee: BDU, study "Personalberatung in Deutschland 2023" (average 27 percent of target income, 2022 data); the 25 to 33 percent range reflects market figures published by providers. Average interim day rate: DDIM market study 2026. The placement uplift reflects figures published by providers themselves. Search duration: practical experience, not a representative survey. Status: October 2026. This article is an overview and does not replace legal advice.
