Linda Mack of Mack International
participated in a breakout session on 'Single Family Office
Compensation' at the Align Family Office Conference held in
Chicago, June 12-13, 2024.
WEST
PALM BEACH, Fla., July 13,
2024 /PRNewswire-PRWeb/ -- Linda Mack of Mack International participated in
a breakout session at the Align Family Office Conference held in
Chicago, June 12-13, 2024. This was the inaugural event
for Align, Family Business Magazine's Family Office Conference. The
agenda was designed to help family offices navigate issues to
ensure alignment on wealth management strategy, governance and
succession plans, and the family legacy. The conference was a two
day, in-person event connecting sponsors to a Family Office
audience through thought leadership and face-to-face
engagement.
"The type of LTI vehicles used will depend
upon each family's philosophy and approach and careful design to
ensure that incentives are aligned with family objectives."
--Linda C. Mack
Linda joined Kevin Michalzuk, Private Wealth Advisor and
Executive Director of Morgan Stanley Private Wealth Management for
the presentation. Their topic was 'Single Family Office
Compensation.' An outline of the discussion questions included key
findings from the 2023 Botoff-Morgan Stanley compensation survey,
challenges Family Offices face in attracting and retaining top
talent, and best practices regarding compensation and talent
strategies.
Several highlights of the survey included:
- Executive compensation is highly correlated to the size, scope
and complexity of the Family Office
- 80% of family offices utilize annual incentives and/or bonus
plans and 60% incorporate formalized metrics and objectives into
annual plans.
- The use of LTI plans continues to grow and increases with AUM.
59% report utilizing LTI plans: 47% of firms less than 1 billion
AUM and 72% of firms more than 1 billion AUM
Families adopting a variety of Long Term Incentive plans focus
on aligning goals and performance while promoting employee
retention. The most frequently used LTI vehicles in the market are
deferred compensation, co-investment, and carried interest—with
many families using more than one.
Linda shared several examples of how families are
addressing LTIs and stressed the importance of ensuring that
plans are aligned with family objectives. "Incentives drive
behavior and families need to be sure the plans they design will
drive the behavior that will enable them to achieve their
objectives. There is continued acceleration of LTIs due to
competition in the marketplace and the increasing influx of
compensation practices from institutional markets into the private
and family office markets," noted Linda. The survey underscored
increased competition for talent and compensation premiums. More
than half family offices reported recruiting challenges across the
board. In fact, family offices have increased salaries and bonuses
at a rate higher than the broader U.S. market due to the
competitive market.
Aside from direct compensation, remote and hybrid work
arrangements are no longer a temporary response to the pandemic.
According to the survey over 75% of offices are offering some type
of flexibility, with most staff in the office 3 days per week.
"Most family offices we know continue to prefer people being in the
office. Families believe in teams working together in person to
promote and maintain a strong culture, and stress the importance of
leaders being in the office to foster this," said Linda.
Linda emphasized that best practices in recruiting and retention
strategies have fundamentally remained consistent. "We continue to
stress the importance of having a clear business mandate, providing
resources needed to accomplish objectives, authority commensurate
with accountability, competitive compensation aligned with family
values and objectives, and sound governance and succession
planning. There are no short cuts, and it can be challenging, but
the return is definitely worth it". Linda urges families to seek
expert compensation advice from a consultant like Trish Botoff
in designing their compensation plans to optimize
effectiveness.
" We are seeing a consistent increase in the use of long term
incentive programs and expect this trend to continue in the future.
The type of LTI vehicles used will depend upon each family's
philosophy and approach and careful design to ensure that
incentives are aligned with family objectives."
A copy of the full survey was made available on the conference
app.
About Mack International LLC
Mack International is the premier boutique firm that specializes in
providing retained C-suite executive search and strategic human
capital consulting solutions to family office, investment firm and
enterprise clients on a national and international basis. Clients
range from first generation business enterprise owning wealth
creators through multi-generational families of six or more
generations. Headquartered in West Palm
Beach, Florida, clients also include multi-client family
offices and select investment and wealth management firms that
serve family offices and ultra-high net worth clients. In addition
to its executive search services, Mack International provides
customized strategic human capital/talent management consulting
solutions. The scope of consulting services includes succession
planning, governance, next generation engagement, compensation
practices, and performance metrics.
Media Contact
Isabel Bolt, Mack International,
8173015461,
isabelbolt1@gmail.com, www.mackinternational.com
Twitter
View original
content:https://www.prweb.com/releases/linda-mack-of-mack-international-participated-in-a-breakout-session-at-the-align-family-office-conference-held-in-chicago-june-12-13-2024-302195455.html
SOURCE Mack International