Attracting the top talent.. from CEOs to analysts, what are Family Offices paying their people? π§΅
π΅ Average base salary of a US Family Office CEO is $556,100, total compensation including bonuses is $1,130,500
π΅ Top 10% of Family Office CEOs in the US earn $1,520,000
π΅ CEOs at $1 billion+ Family Offices have an average base salary of $919,400 and total compensation of $2,370,100
π΅ CEOs of US Family Offices with under $100M of assets get an average base salary of $432,600 and total compensation of $491,800
π΅ Chief Investment Officers receive an average of $410,600 and total compensation of $810,800
π΅ Top 10% Chief Investment Officers are receiving an average salary of 750,000 and compensation of $1,336,000
π΅ CIOs at $1 billion+ US Family Offices are being paid an average base salary of $606,100 and total compensation of $1,160,000
π΅ Chief Compliance/Risk officers are receiving an average base salary of $223,400 and total compensation of $339,100
π΅ Senior Portfolio managers are in line for an average $281,900 and total compensation $651,400, with top 10% earning more than $1 million
π΅ Portfolio managers are earning an average $184,700 base salary and total compensation of $414,300
π΅ Senior Analysts are earning an average base salary of $152,100 with total compensation at $238500
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The big cheese. Directs the overall operations of the family office, setting strategic objectives, and ensuring alignment with the family's goals. Typically, the higher the AUM, the more likely the CEO will be a non-family member
Background: CEOs often come from executive leadership roles in corporations, private banks, investment firms, or other family offices. They should bring experience in strategic planning and operations management
Chief Financial Officer (CFO)
Manages financial planning, reporting, liquidity and risk management
Background: Accounting and finance is pretty much essential. Must tick the usual boxes: financial reporting, budgeting, tax planning, and regulatory compliance. Family offices seem to like hiring CFOs from Big 4 accountants, big corporations or other family offices
β’ Sharp Decline (2022-2023): Family office direct/M&A investments dropped 53% from an all-time high at the start of 2022 to the third-lowest level of the decade in late 2023
β’ Rebound in 2024: Deal volume surged 30% in early 2024
β’ Smaller Deals: Despite higher deal activity, total deal value declined by 11%, indicating smaller transaction sizes on average
β’ Family offices are active in both direct investments and M&A as buyers and sellers
β’ Their number of exits has declined significantly over the past year
β’ The total value of exits also dropped in the first half of 2024
Family offices favor relatively small direct investments/M&A
β’ The highest number of M&A exits occurred in 2021 during the investment boom, but the peak deal value was in late 2018
β’ Large and mega-deals were popular in 2021 but declined by early 2023
β’ Interest in large and mega-deals has since rebounded, with such deals making up 23% of family office activity in early 2024
β’ Currently, 50% of family office direct investment / M&A deals involve investments of $25M or less
β’ One in four deals falls within the $25Mβ$100M range
Do you have any experience working in a similar-sized team? If so, how easy was it for you to work in that close knit environment? If not, how would you try and adapt?
Would you call yourself a natural leader? If so give me an example of a situation in which you have to lead a team through a challenge
Would you want prefer to have total autonomy in your work or would you prefer to work with guidance from others?
Do you enjoy working on a range of tasks or would you prefer to work solely in one position? Why is that?
Have you had any experience with the familyβs culture?
How do you like to approach your day? How is your workload and daily/weekly schedule managed in your current/past role?
Are you a person who enjoys challenges? Why?
Have you had experience reporting into multiply managers or stakeholders? If so how did you manage this reporting structure?
2. Problem Solving
Please provide an example of a past problem you have come up against in a similar context
How did you solve it? How did the solution benefit the company?
How do you solve a problem if it is not a skill set or task you have experience in or are familiar with?
Have you worked with the advice of external advisors? If yes, how have you identified they are the correct person to assist you?
The wealthiest families in the world hold secrets that are passed down through the generations
Educational secrets that even the most exclusive schools donβt teach
Wealthy families rarely rely on schools to teach kids about finance
Family offices curate exclusive financial education programs. Programs delivered through private agencies, Ivy League universities and specialist organizations
12 lessons on financial education from Family Offices:
(and tips for any family)
π§΅
Lesson 1: be open
Successful UHNW multi-generational families talk about money. They are not coy
Itβs part of everyday life to talk about business, wealth and money. Business-talk at the dinner table is encouraged
Wealth brings opportunities and problems. But if wealth is a taboo subject, opportunities will be missed and problems exacerbated
A lot of people think they are helping their kids by shielding them from financial matters. But like any topic, to master it, you need to be consistently exposed to it
Lesson 2: start young
That doesnβt mean telling wealthy toddlers their net worth
It means teaching kids about:
- the history of the family wealth
- the scope of the wealth
- the family values
As they get older, focus can shift to areas such as budgeting and saving. Then investing, tax, credit, finance, philanthropy
Kindergartens and schools donβt teach finance... Itβs on you