Compensation is key to attracting and retaining family office staff – something that can be a challenge in the current market. Test your knowledge of family office compensation:
- How many family office professionals received a salary increase in 2022?
A. 23%
B. 58%
C. 72%
D. 100% - What is the most common driver of salary increases?
A. Market surveys
B. Cost of living
C. Individual performance
D. Individual request - How many family office professionals receive a performance bonus?
A. 25%
B. 48%
C. 63%
D. 80% - Which is more common, a discretionary or a formulaic bonus?
A. Discretionary
B. Formulaic - How large is the typical bonus for a family office professional?
A. 5-10% of salary
B. 21-30% of salary
C. 41-50% of salary
D. 75-80% of salary
Answers
Q 1: Answer: B. According to the 2023 Global Family Office Compensation Benchmark Report from KPMG Private Enterprise and Agreus, 58% of family office professionals worldwide received a salary increase in 2022.
Q 2: Answer: C. Individual performance was the most common driver of salary increases, cited by 66% of respondents in the Single Family Office Compensation Report from Morgan Stanley Private Wealth Management and Botoff Consulting.
Q 3: Answer: D. The KPMG/Agreus survey found that only 20% of family office professionals do not receive any type of performance bonus.
Q 4: Answer: A. Discretionary bonuses, which give the family office leaders leeway in deciding how much to award, are more popular than bonuses that are determined by a strict formula. Discretionary bonuses were reported by 60% of the respondents to the KPMG/Agreus survey, whereas 26% reported receiving formulaic bonuses.
Q 5: Answer: B: The most commonly awarded bonus is 21-30% of salary, according to the KPMG/Agreus survey.
