Fractional vs full-time executive
A fractional executive costs $80K to $200K annualized and starts within 30 days. A full-time executive costs $320K to $500K all-in and takes 4 to 6 months to hire. Fractional wins under $10M ARR; full-time wins above unless the role is genuinely part-time.
| Criterion | Fractional | Full-Time |
|---|---|---|
| Time to first day | 7–30 days | 4–6 months |
| Annualized cost | $80K–$200K | $320K–$500K all-in |
| Equity | 0–0.75% | 0.5%–2.5% |
| Board attendance | Yes | Yes |
| Hire/fire authority | Yes, in-scope | Yes, functional |
| Depth of commitment | 10–40 hrs/mo | 50+ hrs/wk |
| Exit / replace cost | 30-day notice | 3–6 months of severance risk |
| Best when | Pre-$10M ARR, unclear scope | Post-$10M ARR, clear role |
Cost math
A full-time US CFO or CMO at Series A/B commands $250K to $380K base plus 0.5% to 1.5% equity plus $30K to $50K in benefits and taxes. All-in: $320K to $500K per year. A fractional executive at $12K per month runs $144K annualized with no equity, no benefits, and no severance exposure. Break-even is roughly $180K in annual fractional spend — below that, fractional wins on cost alone.
Speed
A full-time C-suite hire takes 4 to 6 months from search kickoff to first day. A fractional executive lands in 7 to 30 days. When the need is urgent — a board request, a raise, a departure — this gap alone is decisive.
When full-time wins
The role is genuinely 40 to 60 hours per week. The company is post-Series B or above $10M ARR. The function is core to the moat (a CTO at an infra company, a CRO at a sales-led company). Long-term ownership matters more than optionality.
When fractional wins
Pre-Series B or under $10M ARR. Cash is scarce. Scope is uncertain. You want to try the operating model before committing. You want to test the person before offering permanent equity. You have a specific 6 to 12 month objective (raise, launch, restructure).
The bridge play
The highest-ROI pattern: hire a fractional executive at month zero, use the first 6 months to define the role and prove the operating model, and either extend (if scope stays part-time) or run a full-time search with the fractional executive helping recruit the successor (if scope grew).
Hire a vetted fractional executive.
Post a private mandate on RecruitFractional and receive a vetted shortlist of C-suite and VP-level operators within 72 hours.
FAQs
Is fractional cheaper long-term?
Until the role requires more than 30 hours per week, yes. Above that, full-time is cheaper per hour.
Can a fractional executive be promoted to full-time?
Yes, and it happens in roughly 20 to 30 percent of engagements. Structure the fractional contract with a right of first refusal on the full-time role.