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Thomas Lore

Pact & Partners

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Hiring executive leaders in the US: What foreign companies need to know

If you're organisation is looking to break into the US market, securing a strong leadership team in America is essential. Without external recruitment support, you risk making a bad hire and delaying your expansion. Thomas Lore from Pact and Partners highlights the complexities of hiring US executives and how a smart search partner can help you navigate the confusing world of compliance, pay and employer rules.

Breaking into the US market is a big deal for foreign businesses, whether they’re giant corporations or startups looking to grow. One thing that always separates the winners from the losers is getting the right leadership team in place in the States. A great US CEO, Country Manager, CFO, CTO, CMO, or Board Member can accelerate your market entry, secure partnerships, and help you tweak your global plan to fit the US. But a bad hire? That can mess up your launch, waste money, hurt your brand, and cause significant delays that cost a fortune.

Why rushing a hire can be a disaster

The US market moves fast, so foreign companies often feel like they need to hire people quickly. They might use internal recruiters who don’t really know the US talent pool, or they might rely on suggestions from investors and partners that don’t match the company’s vibe or current direction.

Getting this wrong can be really, really expensive. Harvard Business Review has said repeatedly that executives usually fail because of culture and expectations, not skills. A US executive who doesn’t understand how the central office makes decisions or how to adapt a product for the US might leave within a year or two, which creates problems and hurts your reputation. So, don’t rush. Be sure to use the free library of executive job description templates to avoid mistakes at this stage.

The confusing world of compliance, pay, and employer rules

The US isn’t a single market; it’s 50 states, each with its own employment laws, tax systems, and pay standards. You need to carefully figure out what to pay your executives. This includes:

  • Base salary (which is often way higher than in other countries)
  • Bonus plans
  • Stock options
  • Long-term bonuses
  • Benefits packages that are competitive in the US’s private health insurance system

Foreign companies often underestimate total compensation by 25-40%, and then they lose candidates or negotiations fall apart.

Why a smart executive search is so important

Hiring executives in the US from another country means more than just finding people. It means having a specific search plan that takes into account local differences, industry connections, cultural expectations, and sector specifics. For example, here is what to expect when recruiting in life sciences in 2026

Access to local networks and people who aren’t even looking for a job

US executives – especially successful CEOs, CFOs, and GMs – usually don’t respond to job postings. More than 70% of senior leaders are passive candidates – they’re open to new jobs, but they’ll only look at them if someone they trust reaches out. Local search partners can:

  • Find talent that’s not easy to see
  • Make connections across venture capital, private equity, and industry groups
  • Give you credibility that makes executives want to talk to you

Making sure everyone understands each other

A good search partner can help translate – they help global CEOs and HR leaders understand what’s expected in the US, and they ensure candidates understand how the company operates worldwide. This means making sure everyone is clear on:

  • How decisions are made
  • Who reports to whom
  • How much independence people have
  • Time zone and communication differences
  • What success means in both regions

This is the kind of thing that often goes wrong when foreign companies hire on their own.

Reducing risk with a careful evaluation

Research from McKinsey shows that companies that use structured ways to evaluate leaders see success rates increase by as much as 50%. A careful executive search in San Francisco, Miami, Austin, Boston, Chicago, Los Angeles, and New York includes:

  • Behavior-based interviews
  • Leadership tests
  • Checking references in different countries
  • Testing people with real-world scenarios
  • Analysing cultural fit, especially for companies that work across borders

This kind of thoroughness means fewer hiring mistakes and ensures everyone is on board with the company’s long-term plans.

What makes hiring in the US different from other markets

Foreign CEOs and investors often think hiring in the US is just like hiring back home—but bigger. But the US talent market has its own rules that people don’t always talk about.

US candidates want quick communication, clear salary ranges, and a process that makes sense. If you’re slow or secretive, you can lose top candidates in a matter of days.

Executives want to know:

  • How their role will help the company grow
  • How much power they’ll have
  • How they’ll be measured in the first year or two

Foreign companies need to explain this clearly if they want to attract the best people.

Even for executive positions, candidates will look into your company’s reputation, what people say about the leadership, how much money you have, and how stable the team is. If anything is unclear, it can slow things down or make candidates lose interest.

US executives expect to help create the plan – not just follow it. Leaders in the US market want to be independent and have a say in the strategy. They want a seat at the table, not just orders from headquarters. Foreign CEOs need to be ready for this.

So, such companies obviously need the help of agencies, knowing what to do. If you are afraid of additional costs, read the article How are executive search firms paid? It contains insights into the pricing.

How global companies can win when hiring in America

Even though it’s tough, lots of foreign companies do well in the US every year. What makes the difference is being prepared, hiring strategically, and getting good advice. These are the things that always lead to successful US growth.

If you’re clear about what the role is, what it includes, and how you’ll measure success, you’re less likely to have mismatched expectations. You need a written description of the role – and a well-written job description.

Work on building your brand for the US audience. This includes:

  • Making your website look like it was made for Americans
  • Showing off your US customers or partners
  • Highlighting how stable your leadership is and how much investment you have
  • Making it clear that you’re committed to the US market for the long haul

Candidates want to know that your US plan is solid – not just an experiment.

What happens in the first few months will determine whether a US executive becomes a great leader or just feels lost. To integrate them well, you need:

  • Regular communication with the main office
  • Clear decision-making processes
  • Consistent expectations for reporting and performance
  • Early wins that help them gain trust with US stakeholders

Foreign companies that focus on onboarding do better than those that just assume the executive will figure things out.

Conclusion

The US is still the most competitive market, and global companies can’t afford to make mistakes when choosing their first American executives. With changing tariffs, supply chains, and global uncertainty, there’s a big opportunity to set up or grow a US presence – but only for companies that get their leadership right early on.

If you’re a global company, the way forward is clear: work with experts who know how to help foreign companies hire leaders in the United States, spend time making sure everyone is on the same page culturally and strategically, and approach the US hiring process with the attention and ambition it deserves.

Pact and Partners has been helping international companies find the best professionals for management positions for 15 years. This experience allows us to accurately craft job descriptions and select the most suitable candidates. Contact Pact and Partners to avoid mistakes in your executive leadership hiring process.

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Thomas Lore

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