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For years, top corporate leaders have relied on executive coaches to overcome personal challenges, sharpen leadership strategies, and improve both individual and organizational performance. But with coaching typically ranging from $200 to $3,000 hourly, a key question remains: Are executive coaches truly worth the investment?

According to leadership experts and seasoned coaches, the answer is yes—but only when approached with clear objectives, personal accountability, and guidance from a trusted, experienced professional.

At its best, coaching offers far more than advice. It provides a structured, outside perspective that helps leaders deepen their self-awareness, refine decision-making, and develop more effective communication.

“Leading teams well is not something that is automatically understood,” says David Peck, global lead of Heidrick & Struggles’ executive coaching practice. “At its best, executive coaching enables a leader to identify where—and, importantly, how—they need to sharpen, fine-tune, or modify their mindset and behavior in ways that can make significant changes.”

Coaches can be especially valuable for those on the path to the C-suite. Leadership experts say it enhances transition readiness, builds emotional intelligence, and broadens one’s strategic vision. “You need someone giving you that new way of seeing and doing things,” says Liz Bentley, founder of Liz Bentley Associates, an executive leadership coaching firm.

Many chief executives credit coaching as pivotal to their professional ascent. Former Google CEO Eric Schmidt once called hiring a coach, whom he met with weekly for about 15 years, the best professional decision he ever made. Amazon founder Jeff Bezos and Microsoft founder Bill Gates have similarly touted the value of outside counsel when navigating high-stakes leadership moments.

While the return on coaching is often qualitative and individualized, research suggests the payoff can be significant. In a 2019 survey by management consulting firm FMI, 87% of respondents said they saw a significant return on investment from executive coaching.

The market for coaching services has expanded rapidly in recent years. Between 2019 and 2022, the number of leadership coaches grew by 54%, and the industry’s annual revenue reached nearly $4.56 billion, according to a 2023 International Coaching Federation global coaching study. But that growth has also created a crowded, inconsistent landscape. Aside from certification from the ICF, there’s no universal licensing body or set of credentials—making it difficult to distinguish seasoned professionals from self-appointed “gurus.”

“Credentialing is a diluted proxy for relevant experience and skill,” warns Dennis Baltzley, Korn Ferry’s global head of leadership development solutions. What truly matters, he says, is real-world experience and demonstrated success.

Gary Rich, founder of Rich Leadership and a former CEO, agrees: “Nobody knows who’s the snake oil salesman.”

His advice: Vet coaches through trusted referrals, check past clients, and align on coaching style. Some leaders want a thought partner. Others need a truth-teller who won’t hesitate to call out poor leadership habits.

Above all, Rich emphasizes real-world leadership experience. “If the coach you’re looking at is someone who has run a billion-dollar business, has had thousands of people that are working for them, has managed a large system, then they at least know what it was like.”

Still, coaching alone isn’t a magic fix. Experts stress the importance of entering the process with clear goals and a growth-oriented mindset. “Frankly, most coaches are [hired] because someone is unhappy at their job,” says Shawn Cole, president of Cowen Partners Executive Search. “If it’s not driven by a desire for real leadership development, the coaching can devolve into therapy.”

Ultimately, coaching delivers the strongest returns when it’s used intentionally: to grow, not just to cope. And in today’s complex business landscape, that clarity may be the most valuable leadership tool of all.