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. 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.
Two cost logics that do not compare
Executive search bills a share of the target annual salary, typically 25 to 33 percent, 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. 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.
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.
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.
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
Does nugrow also place permanent hires?
The permanent appointment often grows out of the mandate, because by then the requirements are reliable. The focus, though, is the fixed-term appointment.
Is an interim CFO more expensive than a permanent hire?
Per day, yes; per task, often not. An interim 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.
What about temporary staffing agencies?
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 – the difference to a service contract is in contract and bogus self-employment.
How fast does it actually go?
First suitable profiles usually within 24 hours, start a few days after selection and engagement. An executive search sits at three to six months to a signed hire.
Read on
- Interim CFO, CFO as a service or permanent hire – the three models compared.
- Finding an interim CFO – selection and criteria.
- Pricing – day rates, monthly retainers, worked example.
- References – twelve mandates with brief, scope and outcome.
Sources and status
The search-fee range and the placement uplift reflect market figures published by providers themselves and are not a representative survey. Status: September 2026. This article is an overview and does not replace legal advice.