True or false? A majority of family offices have:
A) a formalized governance structure
B) an investment committee
C) a succession plan
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.