Executive compensation in family offices is quietly undergoing a structural shift – in some cases now rivaling, and competing directly with, hedge funds and private equity. A recent Heidrick & Struggles study of 106 family office executives shows US base salaries for top roles rising from 471,000 dollars in 2023 to 541,000 dollars last year, with bonuses estimated to reach 563,000 dollars in 2025. In Europe, total compensation is stabilising in nominal terms, but with a higher share tied to long-term incentives such as carried interest and phantom equity.
What matters is not just the level of pay, but the architecture behind it. Compensation is moving away from pure cash towards total-reward models designed for long-term retention, alignment with multi-generational objectives, and values-based leadership. CEO/CIO dual roles remain the best-paid in both regions, and in smaller structures these roles are often consolidated into a single key person risk.
This is happening against a backdrop of rapid growth and institutionalisation. By 2030, the number of family offices may reach 11,000 globally, with most teams still consisting of up to five investment professionals managing between 1 and 5 billion dollars. Generational transition is no longer theoretical: only 13 percent of respondents report no succession plans, and around one third are already in the midst of a wealth transfer.
For wealth-owning families and their advisers, the question is less “how much do we pay?” and more “what behaviours and governance outcomes are we paying for?” In our work with families building or restructuring their office – whether in-house or via a “family office as a service” model – we see compensation design increasingly treated as a core tool of risk management and long-term alignment, not just a cost line.
How are you aligning compensation, governance, and succession in your family office so that key people, next-generation interests, and long-term capital all move in the same direction?
What matters is not just the level of pay, but the architecture behind it. Compensation is moving away from pure cash towards total-reward models designed for long-term retention, alignment with multi-generational objectives, and values-based leadership. CEO/CIO dual roles remain the best-paid in both regions, and in smaller structures these roles are often consolidated into a single key person risk.
This is happening against a backdrop of rapid growth and institutionalisation. By 2030, the number of family offices may reach 11,000 globally, with most teams still consisting of up to five investment professionals managing between 1 and 5 billion dollars. Generational transition is no longer theoretical: only 13 percent of respondents report no succession plans, and around one third are already in the midst of a wealth transfer.
For wealth-owning families and their advisers, the question is less “how much do we pay?” and more “what behaviours and governance outcomes are we paying for?” In our work with families building or restructuring their office – whether in-house or via a “family office as a service” model – we see compensation design increasingly treated as a core tool of risk management and long-term alignment, not just a cost line.
How are you aligning compensation, governance, and succession in your family office so that key people, next-generation interests, and long-term capital all move in the same direction?