{"id":9422,"date":"2023-11-01T18:43:41","date_gmt":"2023-11-02T01:43:41","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=9422"},"modified":"2023-11-01T19:07:46","modified_gmt":"2023-11-02T02:07:46","slug":"what-a-2023-survey-found-re-family-office-compensation-and-talent","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/family-businesses\/what-a-2023-survey-found-re-family-office-compensation-and-talent\/","title":{"rendered":"What a 2023 Survey Found Re: Family Office Compensation and Talent"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;4px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; custom_padding=&#8221;10px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||15px|||&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_button button_url=&#8221;https:\/\/familyenterpriseusa.com\/polling-and-research\/contact-your-representatives-in-congress-to-join-the-congressional-family-business-caucus-now\/&#8221; button_text=&#8221;Empower Change: Demand Action from Your Representatives in Congress Against Damaging Policies and Excessive Regulation!&#8221; button_alignment=&#8221;center&#8221; disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Call to Action Button Top&#8221; _builder_version=&#8221;4.22.1&#8243; _module_preset=&#8221;default&#8221; custom_button=&#8221;on&#8221; global_module=&#8221;7025&#8243; saved_tabs=&#8221;all&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_button][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.22.1&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;16px&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\"><em><strong>By Linda Mack, Mack International<\/strong><\/em><\/a><\/p>\n<h2>In an increasingly competitive market for sophisticated and experienced professional and investment talent, family businesses are seeking and applying new approaches to attract and retain top level executives. Drivers that affect Family Office compensation include size, family philosophy, position scope and complexity, individual performance, and geography.<\/h2>\n<p>&nbsp;<\/p>\n<h3>A perennial challenge regarding compensation has been the lack of good benchmarking available as reference. In 2015 the first Family Office Executive Compensation Survey was published by Fidelity Family Office Services and Botoff Consulting. A subsequent survey was released in 2017, co-sponsored by <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">Mack International<\/a>, McNally Capital and Botoff Consulting. This year, the latest survey developed by Botoff Consulting uncovered valuable trends and insights into types of compensation Family Offices are using to attract and retain C-suite leaders.<\/h3>\n<p>&nbsp;<\/p>\n<h4><strong>#1 Family offices have increased salaries and bonuses at a rate higher than the broader US market due to competition for talent.<\/strong><\/h4>\n<p>Heightened competition for key roles and competencies has spurred family offices to increase compensation for incumbents and candidates to remain market competitive. The survey showed 33 percent of family offices reported higher performance bonuses and 46 percent of family offices reported higher salary increases than prior year compensation actions. Notably, these increases were not due to inflationary concerns but instead due to the strong talent market and increased competition for executive, accounting, and <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">investment team talent<\/a>.<\/p>\n<h4><strong>#2 Family offices are increasing the use of formalized metrics and objectives in their annual incentive plans.<\/strong><\/h4>\n<p><a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">Recruiting challenges<\/a> remain top of mind in over 50% of the family offices surveyed. The strong market for family office professionals is driving family offices to proactively define their compensation strategy to improve recruiting outcomes and to recognize and reward the value of employee retention.<\/p>\n<p>In response to the increasing professionalism in family offices,\u00a0 80% of family offices report the use of annual bonuses, and nearly two-thirds have incorporated formalized annual <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">incentive plans for executives<\/a>. Performance metrics and clearly defined and aligned objectives serve to both retain and motivate key talent toward accomplishing the overall goals of the family office.<\/p>\n<h4><strong>#3\u00a0 Family offices have adopted a variety of LTI plans, designed to support goals and performance while promoting employee retention.<\/strong><\/h4>\n<p>Over 50% of Family Office respondents report <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">implementing LTI plans<\/a>. There is a trend toward tailoring their plan designs to meet the long-term goals of the family with attractive <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">long-term compensation<\/a> arrangements for key employees. The most common types of incentive compensation arrangements provided were deferred incentive compensation, carried interest and co-investment opportunities. Fewer family offices are offering profit sharing plans, phantom equity, phantom carried interest or operating company equity.<\/p>\n<p>Family offices are incorporating well-defined performance measures to structure long-term incentives with scaled performance thresholds, as well as with a variety of vesting and award payout options. Increasingly, family offices are implementing a variety of forms of equity for tax purposes, like a profits interest, which allows a family office to offer specific tax-advantaged options that would not be available to a corporation issuing equity.<\/p>\n<h4><strong>Conclusion: <\/strong><\/h4>\n<p>The types of <a href=\"https:\/\/www.mackinternational.com\/\" target=\"_blank\" rel=\"noopener\">compensation packages<\/a> vary widely, depending upon the strategy and goals of a particular Family Office. Ultimately, designing compensation plans that are aligned with family objectives and testing incentive plans to insure they drive behaviors that will lead to achieving family goals is paramount. Developing a process before, during and after an executive search is embarked upon plays a critical role in the overall success of the Family Office.\u00a0<\/p>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; disabled_on=&#8221;off|off|off&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text admin_label=&#8221;Mack Intl Logo &#038; About&#8221; _builder_version=&#8221;4.22.1&#8243; _module_preset=&#8221;default&#8221; link_option_url=&#8221;https:\/\/www.mackinternational.com\/&#8221; link_option_url_new_window=&#8221;on&#8221; global_module=&#8221;6483&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p style=\"text-align: center;\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-4553 size-full\" src=\"https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2021\/12\/Mack-International-footer.jpg\" alt=\"\" width=\"500\" height=\"239\" title=\"\" srcset=\"https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2021\/12\/Mack-International-footer.jpg 500w, https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2021\/12\/Mack-International-footer-480x229.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 500px, 100vw\" \/><\/p>\n<p><em><strong>About Mack International LLC<\/strong><br \/>Mack International is the premier boutique retained executive search and strategic management\/human capital consulting firm serving national and international clients in the family office, family business enterprise and the wealth management industries on a national and international basis. Founded in 2002, the firm has achieved an exceptional track record of success as evidenced by its unmatched industry expertise, in-depth market knowledge and unparalleled track record of success. Founder and President, Linda C. Mack has established proprietary methodologies such as the Mack 360\u00a9 and is credited for having coined the term \u201cexpert generalist\u201d in the industry.<br \/><\/em><\/p>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; disabled_on=&#8221;off|off|off&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Become a member text&#8221; _builder_version=&#8221;4.21.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; link_option_url=&#8221;https:\/\/familyenterpriseusa.com\/donate-2\/&#8221; global_module=&#8221;5822&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h4><em>We hope you&#8217;ve enjoyed this article. While you&#8217;re here, we have a small favor to ask&#8230;<\/em><\/h4>\n<p>As we prepare for what promises to be a pivotal year for America, we&#8217;re asking you to consider becoming a member.<\/p>\n<p>The need for fact-based reporting of issues important to <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">multi generational businesses<\/a> and protecting a <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-stories\/\">lifetime of savings<\/a> has never been greater. Now more than ever, <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">multi generational businesses<\/a> and <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-stories\/\">family businesses<\/a> are under fire. That&#8217;s why <a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">generationally-owned family businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high <a href=\"https:\/\/familyenterpriseusa.com\/category\/income-taxes\/\">income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, enactment of a wealth <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, and the continued burden of the gift <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, <a href=\"https:\/\/familyenterpriseusa.com\/category\/estate-taxes\/\">estate tax<\/a> and generation skipping <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>.<\/p>\n<p>[\/et_pb_text][et_pb_button button_url=&#8221;https:\/\/familyenterpriseusa.com\/donate\/&#8221; button_text=&#8221;Become a Family Enterprise USA Member&#8221; button_alignment=&#8221;center&#8221; disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Become FEUSA member button&#8221; 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_builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=GnpvvzhcfS0&#8243; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=6UMxZ8yBsOs&#8221; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;FEUSA Statement&#8221; _builder_version=&#8221;4.21.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; link_option_url=&#8221;https:\/\/familyenterpriseusa.com\/donate-2\/&#8221; global_module=&#8221;5910&#8243; saved_tabs=&#8221;all&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<hr \/>\n<p><a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> promotes <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">generationally<\/a> owned <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-businesses\/\">family business<\/a> creation, growth, viability, and sustainability by <a href=\"https:\/\/familyenterpriseusa.com\/about\/\">advocating for family businesses<\/a> and their lifetime of savings with <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-caucus\/\">Congress<\/a> in Washington DC.\u00a0 Since 2007, <a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0<a href=\"https:\/\/familyenterpriseusa.com\/membership\/\">Family foundations can donate.<\/a><\/p>\n<hr \/>\n<p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Hash tags &#038; Tags&#8221; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_module=&#8221;6498&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>#incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness\u00a0 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Linda Mack, Mack International In an increasingly competitive market for sophisticated and experienced professional and investment talent, family businesses are seeking and applying new approaches to attract and retain top level executives. Drivers that affect Family Office compensation include size, family philosophy, position scope and complexity, individual performance, and geography. &nbsp; A perennial challenge [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,92,78],"tags":[],"class_list":["post-9422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-multi-generational-business","category-in-the-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/9422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9422"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/9422\/revisions"}],"predecessor-version":[{"id":9431,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/9422\/revisions\/9431"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/9424"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}