Introduction
Are you considering a career in the family office space and wondering if the compensation is competitive? In this post, we’ll discuss the types of jobs in a family office, the average salary range, bonus compensations, and how family offices compare to banks. We’ll also explore the non-financial benefits of working in a family office.
Types of Jobs in a Family Office
Family offices are diverse in their structure, but they typically employ professionals in the following areas:
- Investment Management: Portfolio managers, analysts, and traders.
- Financial Planning: Tax and estate planning specialists, and risk managers.
- Operations: Compliance officers, IT specialists, and administrative staff.
- Family Services: Philanthropy advisors, family governance experts, and lifestyle managers.
Salary Ranges for Family Office Jobs
The salary range for family office jobs can vary widely, depending on factors such as location, size of the family office, and the level of expertise required. According to Payscale, the average annual salary for an investment analyst in a family office in the United States is around $77,000. Portfolio managers can earn between $100,000 to $200,000 per year, while C-suite executives like Chief Investment Officers (CIOs) can command salaries upwards of $300,000.
Bonus Compensation
Bonus compensation is an important aspect of the family office compensation package. Bonuses are typically performance-based, tied to the performance of the portfolio or the success of the overall family office. This creates an alignment of interests between the family office and its employees. Bonuses can range from 10% to 100% of an employee’s base salary, depending on the role and performance.
Family Office vs. Banks: Compensation Comparison
Comparing family office compensation to that of banks isn’t an apples-to-apples comparison, as banks typically have a more rigid hierarchical structure and pay scale. However, family offices can offer competitive compensation packages, particularly for experienced professionals in specialized roles. In some cases, family offices may even offer higher compensation than banks, particularly when factoring in bonuses and non-financial benefits.
Non-Financial Benefits of Working in a Family Office
While compensation is undoubtedly important, family offices also offer several non-financial benefits that can make them attractive to professionals:
Work-Life Balance
Family offices often provide a better work-life balance than banks, with less demanding hours and a more relaxed work environment.
Close-Knit Teams
Working in a family office means being part of a smaller team, which can lead to stronger working relationships and a more collaborative environment.
Direct Impact
Employees in a family office can see the direct impact of their work on the family’s wealth and well-being, fostering a sense of accomplishment and purpose.
Exposure to Diverse Asset Classes
Family offices typically invest in a wide range of asset classes, providing employees with valuable experience and learning opportunities.
Long-Term Perspective
Family offices tend to have a long-term investment horizon, which can provide a more stable and less stressful working environment compared to the short-term focus of many banks.
Conclusion
Do family offices pay well? In general, yes. While the salary range can vary depending on factors such as location and role, family office compensation packages are often competitive with banks. However there are several factors to consider including bonuses and non-financial benefits. For professionals seeking a rewarding career with a focus on work-life balance, long-term perspective, and diverse investment opportunities, a family office may be the ideal choice.