Latest news with #familyoffice
Forbes
4 days ago
- Business
- Forbes
Why Family Offices Are Going Beyond The Bonus And Rewriting Reward Rules
Big paydays could be on the horizon for family office professionals. There seems to be a quiet shift happening in how family offices think about people. Not just who they hire, but how they build relationships that last. Compensation has been a recurring question amongst family offices and Morgan Stanley's 2025 Single Family Office Compensation Report highlights a telling trend: long-term incentive plans (LTIPs) are on the rise. Among investment-led firms, 95 percent of executives are now eligible for some form of LTIP. These include deferred cash arrangements, phantom equity, co-investment opportunities, and in select cases, profit-sharing models that echo private equity carry structures. At first glance, it appears to be a tactical adjustment aimed at attracting and retaining top talent. But this shift runs deeper. It hints at a move away from informal, discretionary reward systems and toward something more structured and intentional. This type of structure could potentially help build trust, incentivise commitment, and work towards the long arc of value creation. From Discretionary to Deliberate Historically, family office compensation was straightforward. Modest base, generous bonus, a handshake understanding of loyalty. Many offices took pride in this simplicity. They saw it as part of their culture. But culture, like capital, evolves. Today, more family offices are hiring from institutional worlds. Their talent pool includes former private equity partners, hedge fund analysts, and tech entrepreneurs. These professionals arrive with new expectations, not just around pay, but around clarity, fairness, and long-term upside. In response, family offices are redesigning reward architecture. Deferred compensation over three to five years is now common. Phantom equity and synthetic carry plans are emerging as ways to link professionals to the performance of investment portfolios or operating businesses. Co-investment, once informal, is increasingly structured, with defined timelines, risk-sharing, and clawback provisions. For many offices, these tools are no longer optional. They are signals of seriousness. Incentives as Architecture A well-designed LTIP is more than a pay packet. It is architecture. It shapes behaviour, clarifies expectations, and encodes culture. Some offices structure LTIPs purely around performance. Others build in retention triggers or governance-based milestones. A growing number now include qualitative factors, from ESG engagement to succession readiness or philanthropic leadership. In doing so, families are using compensation not just to incentivise, but to align. This is where design matters most. A plan that rewards only financial performance might deliver returns, but erode trust. A plan that reflects shared purpose creates a different kind of loyalty. Done well, LTIPs become instruments of continuity. They create a horizon that both principals and professionals can walk toward together. Mutual Commitment in a Mobile World Talent is more mobile than ever. Family offices are no longer protected by informality or location. Loyalty must now be built through structure, clarity, and shared upside. But the shift to LTIPs is not only about retention. It is about reciprocity. However, these plans obviously require buy-in from both sides. Professionals must commit to a longer-term vision and families, in turn, must codify trust, often for the first time. This mutual commitment changes the nature of the office. It transforms it from a personal platform into an institutional entity. And in doing so, it prepares it for continuity. Compensation as a Compass Incentive programmes are just tools. But their use and uptake are also a signal. A reflection of how a family sees its future, and who it wants to take them there. Family offices have many questions, but in 2025, compensation is viewed more strategically than ever before. A view that blends finance with philosophy, and reward with responsibility. For family offices serious about long-term alignment, legacy, and culture, the question is no longer whether to introduce LTIPs. The question is how well they are designed and what they are designed to say.
National Post
7 days ago
- Business
- National Post
Long-Term Incentive Plans on the Rise: Morgan Stanley 2025 Single Family Office Compensation Report
Article content NEW YORK — Morgan Stanley's Single Family Office Advisory today released its biennial compensation report. The 2025 report, created in collaboration with Botoff Consulting, offers critical benchmarks and trend analysis to empower family office leaders to make informed staffing and compensation decisions. Article content Findings spotlight how investment-focused single family offices diverge from broader single family office trends, particularly in terms of compensation. Investment-focused single family offices are prioritizing the alignment of compensation practices with organizational strategy and AUM, especially through executive compensation and structured long-term incentive (LTI) plans. LTIs are increasingly being used to help drive performance and safeguard family objectives—all as family members become more involved. Article content 'Investment-focused single family offices are particularly complex, and their compensation structures are no less so. With candidates more sophisticated and selective than ever before, understanding the nuances of incentive structures is crucial to attract and retain top talent,' said Valerie Wong Fountain, Managing Director, Head of Family Office Resources Platform and Partner Management at Morgan Stanley. 'LTIs and structured compensation offer a clear pathway for family offices to directly tie their key values, goals, and best practices with leadership and the needs for their professionals, ultimately driving performance and enhancing their competitive edge.' Article content Key findings from the report show that: Article content LTIs are becoming table stakes: Investment-focused single family offices are more reliant on LTI plans (62% vs. 54% of all single family offices), and 76% of firms with LTI plans provide some type of bonus or reward to encourage participation. Families are taking the reins in leadership: Family members are roughly twice as likely to hold CEO and CIO positions in investment-focused single family offices (53% of CEOs and 13% of CIOs, vs. 27% and 6% in all single family offices, respectively). Direct investment management is on the rise: As families become more hands-on, a larger share of investment-focused single family offices (56%) manage their investments directly within the company rather than outsourcing their portfolio management to larger investment houses, compared to 44% of all single family offices that do the same. Gender representation still has a way to go: Women hold 24% of top positions in investment-focused single family offices, below the 29% in leadership roles across all single family offices surveyed. Article content The complete study, which is based on insights from over 100 investment-focused single family offices, can be found here: Single Family Office Compensation: A Guide | Morgan Stanley. Investment-focused single family offices are private wealth management structures that manage the financial affairs of a single, wealthy family, with a primary emphasis on investment management. These offices handle everything from investment strategy and manager selection to asset allocation and portfolio construction. They act as a central hub for all investment-related activities, offering a customized approach tailored to the family's specific needs and long-term goals. Article content Morgan Stanley's Family Office Resources is committed to providing valuable resources and insights to the family office community, supporting their continued growth and success in managing complex financial ecosystems. Article content About Morgan Stanley's Single Family Office Advisory Article content Morgan Stanley's Single Family Office Advisory, part of the Family Office Resources Platform and Partner Management, provides content and a niche referral network to single family offices, as well as families that are considering establishing one. Morgan Stanley Private Wealth Management is the division within Morgan Stanley Wealth Management that is exclusively focused on the ultra-high net worth client segment. By providing advice founded on a culture of excellence and driven by global insight, Morgan Stanley Private Wealth Management is devoted to helping clients preserve and grow their financial, family and social capital. Article content About Morgan Stanley Wealth Management Article content Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services. Article content About Morgan Stanley Article content Article content Article content Article content
Globe and Mail
7 days ago
- Business
- Globe and Mail
Long-Term Incentive Plans on the Rise: Morgan Stanley 2025 Single Family Office Compensation Report
Morgan Stanley's Single Family Office Advisory today released its biennial compensation report. The 2025 report, created in collaboration with Botoff Consulting, offers critical benchmarks and trend analysis to empower family office leaders to make informed staffing and compensation decisions. Findings spotlight how investment-focused single family offices diverge from broader single family office trends, particularly in terms of compensation. Investment-focused single family offices are prioritizing the alignment of compensation practices with organizational strategy and AUM, especially through executive compensation and structured long-term incentive (LTI) plans. LTIs are increasingly being used to help drive performance and safeguard family objectives—all as family members become more involved. 'Investment-focused single family offices are particularly complex, and their compensation structures are no less so. With candidates more sophisticated and selective than ever before, understanding the nuances of incentive structures is crucial to attract and retain top talent,' said Valerie Wong Fountain, Managing Director, Head of Family Office Resources Platform and Partner Management at Morgan Stanley. 'LTIs and structured compensation offer a clear pathway for family offices to directly tie their key values, goals, and best practices with leadership and the needs for their professionals, ultimately driving performance and enhancing their competitive edge.' Key findings from the report show that: LTIs are becoming table stakes: Investment-focused single family offices are more reliant on LTI plans (62% vs. 54% of all single family offices), and 76% of firms with LTI plans provide some type of bonus or reward to encourage participation. Families are taking the reins in leadership: Family members are roughly twice as likely to hold CEO and CIO positions in investment-focused single family offices (53% of CEOs and 13% of CIOs, vs. 27% and 6% in all single family offices, respectively). Direct investment management is on the rise: As families become more hands-on, a larger share of investment-focused single family offices (56%) manage their investments directly within the company rather than outsourcing their portfolio management to larger investment houses, compared to 44% of all single family offices that do the same. Gender representation still has a way to go: Women hold 24% of top positions in investment-focused single family offices, below the 29% in leadership roles across all single family offices surveyed. The complete study, which is based on insights from over 100 investment-focused single family offices, can be found here: Single Family Office Compensation: A Guide | Morgan Stanley. Investment-focused single family offices are private wealth management structures that manage the financial affairs of a single, wealthy family, with a primary emphasis on investment management. These offices handle everything from investment strategy and manager selection to asset allocation and portfolio construction. They act as a central hub for all investment-related activities, offering a customized approach tailored to the family's specific needs and long-term goals. Morgan Stanley's Family Office Resources is committed to providing valuable resources and insights to the family office community, supporting their continued growth and success in managing complex financial ecosystems. About Morgan Stanley's Single Family Office Advisory Morgan Stanley's Single Family Office Advisory, part of the Family Office Resources Platform and Partner Management, provides content and a niche referral network to single family offices, as well as families that are considering establishing one. Morgan Stanley Private Wealth Management is the division within Morgan Stanley Wealth Management that is exclusively focused on the ultra-high net worth client segment. By providing advice founded on a culture of excellence and driven by global insight, Morgan Stanley Private Wealth Management is devoted to helping clients preserve and grow their financial, family and social capital. About Morgan Stanley Wealth Management Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services. About Morgan Stanley Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit
Bloomberg
16-07-2025
- Business
- Bloomberg
Saudi Dynasty's Family Office Rehires Executive Who Left in 2024
An investment firm for the dynasty behind one of the Middle East's biggest conglomerates has rehired a longtime executive less than 18 months after he exited to manage money for another super-rich family. Alexander Godwin returned this year to Hasma Capital, the family office for Saudi Arabia's billionaire Juffali clan, in a London-based director role, according to UK registry filings. The 44-year-old, who now lists his position as Hasma's chief investment strategist, left the firm last year for a similar job at Misland Capital, which oversees assets for the descendants of British-born investor Peter Green, the filings show.
Yahoo
04-07-2025
- Business
- Yahoo
Navigate Intergenerational Wealth Transfer and Family Governance, Enhance Your Skills in Cost Management and Tax Advisory (ONLINE EVENT: October 1-3, 2025)
Join our expert-led family office training to master setting up and managing a modern family office. Learn wealth preservation, governance, intergenerational transfer, and effective asset management. Register early for a special offer. Stay ahead with insights on the latest market trends. Dublin, July 04, 2025 (GLOBE NEWSWIRE) -- The "Family Office & Wealth Management Course" training has been added to offering. This practical family office training for family office representatives, family members and wealth managers explores the best strategies for setting up a family office, preserving family wealth and managing a modern family office. You will have a chance to explore the family governance mechanisms, intergenerational wealth transfer, managing complexities of international wealth mobility and succession planning. You will also learn about the operational settings and asset allocation, cost and risk management, tax advisory and philanthropy. Conducted by a family office expert with many years of experience in providing services for high net worth clients worldwide, this course focuses on the latest market trends and effective wealth preservation strategies. What will you learn By the end of this family office course you will: Have an in-depth practical understanding of the structure of a family office and effective family office management approaches Learn about family governance mechanisms Explore how to structure wealth and manage intergenerational wealth transfer Manage family office from choosing an advisor, to cost and reputation management as well as asset allocation strategies Explore different services provided by family office and how to arrange them Understand the latest changes in the wealth management sector Who Should Attend: Heads and Members of: Multi and Single Family Offices Wealth Managers Private Bankers Client Relationship Managers Consultants Heads of Family Services Head of Business Development Financial Planners The family office and wealth management course is designed for family office professionals and wealth managers and will give you an insight into the best practices for wealth management and wealth preservation. Key Topics Covered: Structuring of family office and governance mechanisms Developing the family "mission and values" Dealing with complex family structures Understanding change over the life cycle of family businesses and succession planning Mobility of wealth & the family business Intergenerational wealth transfer Services provided by a family office Selecting advisors and cost management Asset allocation mechanics and optimisation Investments of passion Tax management and advisory Performance measurement and reward systems Wealth structuring and fiduciary services Financial planning Philanthropy Reputation management Valuation of the family business Current challenges and the changing role of the family office For more information about this training visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
