Family Offices, since inception, have struggled with
the concept of compensation.
Coined by the family of J.P. Morgan in 1838 and
popularized by the Rockefellers some four decades
on,theconcept of a Family Office has grown in
popularity with anywhere from 3,000 to 6,000
estimated to exist across the USA today and global
numbers reaching 20,000.
While the number of Family Offices has exponentially
increased, the landscape itself has evolved too.
Family Offices have matured and are no longer small
and intimate entities managing the extraordinary
wealth of individuals and their families. Many have
become institutionalized machines equipped with
exceptional professionals to match.
Macroeconomic factors including the COVID-19
pandemic, conflict in Eastern Europe and Brexit have
also played a part in encouraging Family Offices to
consider their organizational structures and while the
report goes on to explore the typical governance
strategies at play, one thing they are still struggling
with is how to remunerate their staff.
A Family Office requires a distinct skill set,
incomparable to almost any other working
environment. After all, this is an environment where
it’s more than just work — it’s personal and it often
makes the decision regarding compensation a product
of guesswork and emotion rather than built on
research or precedent.
To add to the pressure, most of the professionals
thatFamily Offices search for have backgrounds in
the very benchmarked environment of professional
services andinvestment banking and are accustomed
to a consistent and familiar compensation structure.
This report monitors the salaries, career history, and
demographic of Family Office employees across the
globe. It also identifies Assets Under Management, the
asset classes they favor and how their compensation
aligns with both. For the first time, the report has
delved into succession planning, social mobility, and
wealth transfer — looking at how many generations are
typically at play within a Family Office, how many
locations they operate in and what their governance
structures look like. Or perhaps, the lack thereof.
Benchmark reports have been created for bonus
structures, Long-Term Incentive Plans (LTIP), and ideal
career trajectories into Family Office Leadership. A
magnifying lens has been placed on trends specific to
major Family Office hubs across the world, focusing on
each at a high level and drilling down on Family Office
hubs that have risen in popularity such as Singapore,
Hong Kong (SAR) China and the UAE.
Greg Limb
Global Head Family
Office and Private
Client and Partner
KPMG in the UK
Paul Westall
Co-Founder of Agreus
Tayyab Mohamed
Co-Founder of Agreus
Foreword
This report is one of the world’s
largest dataset on Family Office
compensation and with more than
650 single Family Office professionals
participating in its creation, KPMG
Private Enterprise and Agreus present
to you a trusted benchmark for your
Family Office Compensation.
3The 2023 Family Office Compensation Benchmark Report
© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
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