In August 2025, headlines were dominated by a possible overseas job scam targeting young South African women. Promoted predominantly on TikTok, these “fake” offers promised high salaries abroad but were later suspected to be linked to human trafficking, forced labour, and cybercrime. Deputy Minister of Justice Andries Nel urged young people to be wary of job opportunities that looked too good to be true. 

While the victims in this case were entry-level job seekers, the warning applies equally to executives. At the top of the recruitment chain, the risks are different but no less severe. A misplaced hire or an undisclosed conflict can damage the future of a company. Similarly, executives themselves must be cautious about the organisations courting them. Just as scams prey on desperation, misleading opportunities at senior levels can lead to reputational harm, contractual disputes, and career setbacks. This is why due diligence is not a box-ticking exercise, but a discipline that protects both sides of the recruitment process. 

Protecting the organisation 

Due diligence in executive recruitment shields organisations from financial, operational, and reputational damage. Leadership appointments carry disproportionate influence, and a misaligned CEO or CFO can unravel strategy, destabilise teams, and draw negative attention from investors and regulators. 

Rigorous checks help uncover risks that might be hidden behind polished CVs and smooth interviews. Past misconduct, misrepresented achievements, and unresolved legal issues are rarely volunteered by candidates. Without systematic vetting, companies can find themselves blindsided, and the consequences are not limited to headline scandals. Even subtle issues (like a leader whose management style drives out top talent) can erode value over time. 

By embedding due diligence into recruitment, organisations demonstrate to shareholders, boards, and employees that leadership decisions are taken with the seriousness they deserve. 

Safeguarding the candidate 

Executives are not passive participants in this process either. They must also conduct due diligence on the companies offering them roles. In South Africa’s strained economy, attractive packages can mask hidden instability. A business facing liquidity challenges may lure senior leaders in the hope they can buy time. Others may disguise compliance issues or unresolved regulatory disputes until it is too late. 

A candidate who steps into such an environment without clarity risks being associated with failure they did not cause. Checking financial statements, understanding shareholder dynamics, and verifying contractual terms are essential acts of professional self-preservation. The stakes for executives are high as reputations built over decades can be undone in a single poorly chosen role. 

Core components of due diligence 

Effective due diligence extends beyond surface checks. It brings together multiple strands of information to create a clear picture of both candidate and employer.  

Let’s take a look at the most important aspects of the due diligence process: 

Background verification: make sure that claimed experience, qualifications, and licences stand up to scrutiny. Litigation history and criminal records are particularly important for regulated industries, where one misstep can lead to penalties or barred licences. 

Reputation analysis: media reports, social media activity, and industry commentary can reveal patterns of behaviour that would otherwise remain hidden. Leaders who leave behind fractured teams or unresolved disputes tend to develop a trail that careful research can uncover. 

Cultural and leadership fit: psychometric testing, structured interviews, and reference conversations give insight into how a leader’s style will align with the values and expectations of the organisation. 

Financial checks: leaders under personal financial stress may be more vulnerable to conflicts of interest or unethical decisions. Transparency here is key to protecting both the company and the executive. 

Contract verification: executive contracts are complex, often involving performance incentives, share options, and restrictive covenants and ambiguities can create disputes that distract from leadership priorities and end up in litigation. 

The cost of neglect 

When due diligence is treated as optional, the fallout is predictable. Companies risk appointing executives who lack the integrity or competence to manage complex operations and the result may be declining performance, regulatory fines, or the erosion of investor confidence. These outcomes are public and difficult to reverse. 

Executives who fail to check the organisations recruiting them can face contracts with unfavourable terms, unresolvable conflicts with boards, or association with scandal. A misjudged move at this level rarely goes unnoticed, and recovery can take years. 

Every failed executive placement is expensive. Severance costs, interim management, renewed recruitment, and reputational repair all consume resources that could have been invested in growth, and preventing such costs through diligent preparation is a matter of sound business practice. 

Ultimately, executive roles shape culture, set strategy, and determine how a company is perceived externally. A poor appointment at this level has a cascading effect that reaches every layer of the business. Middle management hires can be corrected with limited disruption, but replacing a senior leader can be both a public and costly affair. 

The concentration of authority in executive positions makes errors in judgment more damaging. A single poor decision on a merger, compliance issue, or restructuring plan can cost millions, which is why boards and shareholders expect recruitment processes at the top to be more rigorous than at any other level. 

A discipline, not an afterthought 

Due diligence in executive recruitment is not an optional formality. It is a discipline that ensures both parties understand who they are working with, what is at stake, and what the terms of engagement are. For companies, it means protecting assets, culture, and reputation. For executives, it means safeguarding careers, credibility, and future opportunities. 

In an era when even entry-level applicants face the threat of scams and misrepresentation, the diligence applied to executive recruitment must be equally rigorous — if not more so. DAV, with nearly fifty years of executive search expertise, delivers precisely that level of scrutiny and depth. By combining strategic talent mapping, discrete headhunting, rigorous screening, and cultural and contractual clarity, we ensure executive placements align with both organisational strategy and individual standards. Whether you are a board evaluating leadership candidates or an executive exploring opportunities, partnering with DAV delivers confidence that every hiring decision is informed, transparent, and built on integrity.