How typical is your family office governance?

True or false? A majority of family offices have:

              A) a formalized governance structure

              B) an investment committee

              C) a succession plan

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The answer is “true” for all three items, according to The 2023 Global Family Office Compensation Benchmark Report from KPMG Private Enterprise and Agreus, a resourcing and recruiting firm that works with family offices.

Still, if your family office lacks one — or all — of these governance measures, you’re not alone. Although a majority of family offices reported having each of these items, significant minorities lack them. The survey found that 58% of family offices have a formal governance structure in place, while 42% do not. Even more have an investment committee: 60% have one while 40% do not. And just a bare majority have a succession plan: 52%. Almost half — 48% — do not.

One other governance-related tidbit from the report: 70% of family office professionals said they report to at least one family member. Of those, 29% said they report to multiple family members.

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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