Family Office

Study Casts Light On Family Office Remuneration

Tom Burroughes Group Editor London 23 February 2016

Study Casts Light On Family Office Remuneration

Family office pay can be more variable than among private banks, a survey finds.

There is more variety in remuneration by amount and by form for people in the family office industry than among wealth management generally, highlighting how the sector remains highly specialised.

That, at least, is a conclusion one can possibly draw from a survey of more than 200 family offices, mostly based in the UK, by Agreus, the executive search firm.

The survey found that 73 per cent of family office staff were paid a discretionary bonus, while 11 per cent received no bonus payments. Some 18.18 per cent of those taking part were paid a formulaic bonus.

Based on the interviews conducted by the headhunter, chief executives and investment-linked roles generated the most bonuses, at around 31 per cent to 50 per cent.

Pay scales are wider in family offices than among private banks, the report by the firm found. A family office investment manager can earn between 31-50 per cent of salary in bonuses. This compares to 15-30 per cent at a private bank.

Some 27.2 per cent of chief executives/managing directors in family offices earned £150,000 to £250,000 per year, while just over 9 per cent earned between £100,000 and £150,000 and 9.09 per cent earned from £200,001 to £250,000. Some 18.18 per cent earned above £350,000.

Agreus tracked percentages of earnings in a range from zero (possibly where remuneration was not in a salary form, such as in options or fees and other routes) to more than £350,000 for the following grades of individual: CEOs; chief investment officers; chief financial officers and financial controllers; investment managers; investment analysts; administrative support/office managers; fiduciary and trust specialists; legal officers; concierge/lifestyle managers; project/operations managers, and personal assistants.

With “formulaic” bonuses, the Agreus survey found they were calculated by reference to the following measures: percentage of portfolio performance; portfolio performance above a benchmark; dividends on family office-owned shares; carried interest on private equity deals; percentage of salary invested alongside a family’s portfolio.


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