Compensation Considerations for High-Net-Worth Families
Striking a balance
Family offices and other private organizations take great care in defining and managing compensation plans that are competitive and motivating, yet reasonable and appropriate for the responsibilities involved. It is critical that incentive compensation supports, rather than dictates, the organization's strategy.
In this article, we address some of the questions about compensation that ultra-high-net-worth individuals and families may face – whether related to their own compensation or that of employees in a family office or business. This article discusses:
- Important principles for developing and managing compensation plans.
- Common types of incentives in family offices, and how co-investments can help align employees’ interests with the family’s.
- How to determine competitive, but “reasonable” compensation.
- How to avoid conflicts related to compensation.
- When to review a compensation plan.