Question 1

How much does a fractional executive cost?

Accepted Answer

Advisory engagements (a few hours per week) are commonly advertised at $125–$350/hour, and hands-on engagements (1–2 days per week) at $5,000–$20,000/month. Treat these as observed asking rates, not survey data — no authoritative survey of fractional executive rates exists, so every published range (ours included) is an estimate. The full-time comparison is firmer: US Bureau of Labor Statistics data puts chief executive pay at a $269,630 mean annual wage.

Question 2

What determines the rate?

Accepted Answer

Key factors include: (1) The executive role — CTOs and CFOs typically command higher rates than COOs or CHROs, (2) Years of experience and track record, (3) Industry specialisation, (4) Engagement depth — advisory vs hands-on, (5) Company stage and complexity, (6) Geographic market.

Question 3

How does FractionalChiefs make money?

Accepted Answer

FractionalChiefs generates revenue through featured listing subscriptions for executives who want premium visibility in our directory, and through referral fees on successful placements. Our content, assessment tools, and cost calculator are completely free for companies.

Question 4

Are there any upfront costs for companies?

Accepted Answer

No. All of our tools — the Executive Finder assessment, cost calculator, readiness quiz, and content — are completely free. You only pay the fractional executive you engage, at the rate you negotiate directly with them.

Question 5

How do I negotiate rates with a fractional executive?

Accepted Answer

Start with our cost calculator to understand market rates for your role and engagement type. Then consider: your budget constraints, the executive's experience level, engagement depth (hours per week), and expected duration. Most fractional executives are open to negotiation, especially for longer-term engagements.

Question 6

Should I pay hourly or a monthly retainer?

Accepted Answer

Hourly billing ($125–$350/hour) works best for project-based or variable work. Retainer pricing ($5,000–$20,000/month for 1–4 days/week) is ideal for ongoing strategic work where you need reliable availability. Retainers typically offer better value and more predictable costs for engagements lasting 3+ months.

Question 7

Can I hire the executive full-time later?

Accepted Answer

Yes — many companies start with a fractional engagement to evaluate fit before converting to full-time. This is one of the key advantages of the fractional model: you get to work together before making a permanent commitment.

Question 8

How long are typical engagements?

Accepted Answer

Most fractional engagements last 6–18 months. Some companies use fractional executives as a bridge while hiring full-time, others maintain fractional relationships indefinitely. There are no long-term contracts required — either party can adjust or end the engagement with reasonable notice.

Option	Annual Cost	Commitment	Flexibility
Full-time executive	$200K–$500K+	12+ months	Low
Fractional executive	$60K–$180K	Flexible (month-to-month)	High
Management consultant	$120K–$300K	Project-based	Medium
Freelance contractor	$50K–$120K	Project-based	Variable quality

Fractional Executive Pricing Guide

Typical Rates by Role

Fractional CTO

Fractional CFO

Fractional CMO

Fractional COO

Fractional CHRO

Engagement Models

Advisory

Hands-On

Embedded

Fractional vs Full-Time: Cost Comparison

Frequently Asked Questions