Families aimed at high networks in Europe move to obtain their affairs before transferring great wealth, but the biggest challenge to hand over their wealth is the clear lack of available workers who are keen to reduce wages to manage billions.
A a report Posted by HSBC Global Private Banking and Campden Wealth, she looked at the state of European family offices, wiping 101 offices representing $ 136 billion of common wealth. Ensuring strong returns and learning how to put the Touli artificial intelligence major fears of these families.
However, the biggest obstacle is to find suitable people to manage their wealth.
More than a third (36 %) of the wealthy respondents in the survey said that there is a limited group of talents available with personal skills appropriate to manage their property. Less than a third (32 %) said they struggled to find leaders with appropriate personal relationship skills.
The operation of the family office can be a profitable disturbing. The research shows that the best managers managers in family offices in $ 500,000 (476,000 euros) annually, although the average is $ 288,000 (27,4600 euros). Although they are attractive, the numbers do not compare positively with other investment functions at a similar level. Heidrick & Strows Find The average salary for specially -backed executives was 447,000 dollars (426,000 euros).
Meanwhile, the executives of the lower family office only earn about $ 120,000 (114,000 euros) per year.
Billionaires look outside the family
If we look deeper into the numbers, families with more than one billion dollars of asset pay senior executives on average only $ 370,000 (353,000 euros) annually from the basic salary, with a bonus of 88 %.
The basic number is less than 0.037 % of the wealth of these families. For family members, the number is less, as for the executives of family offices with a value of less than $ 500 million.
In an attempt to attract talents, the report says, family offices turn into additional incentives to get the best talent. Most of them offer a discretionary performance reward, while the opportunities for investment between the minority or a share of the profits created.
Family offices historically used prestige to recruit leaders, who are also seduced by their smaller preparation. Usually in numbers of one of the employees, allowing each worker with a specific effect. They also tended to attract the heirs keen to carry their legacy.
However, there are fears that these factors do not have the same clouds for non -family members as they did before. Meanwhile, young generations have become increasingly less charm while maintaining their parents ’legacy and more interested in building them.
“I think there will be a shortage of people to manage family offices. Family members who were born in the 1960s were running the family office for 15 years or 20 years,” one of the founders of the UK’s family office told authors.
“Many Gens will want to do something their own away from the family office and employee employment will be gradually more difficult. Who will fill the gap? Family offices will have to bring more professional employees from financial institutions and their culture will change.”
However, one of the executives of the family office told the authors that compliance and excess compatibility in the largest investment companies were making more investment managers consider moving to the preparation of the smaller family office.
The attractiveness of contracting with a non -family member of the family office management grows with the delivery of children’s births and wealth to the next generation. This can save a horrific caliphate battle between an offspring, which is increasingly involved in multiple brothers and even cousins who descend from the same founder.
“Of the next Gens we have seven children, three siblings. All or some will continue to work in the family business office or the family. I am not sure of their ability to work together if there are seven members of the family who are actually competing for the higher job,” the UK’s family office, CEO, told the authors.
Editor Note: A version of this article first appeared on Fortune.com on December 5, 2024.
This story was originally shown on Fortune.com
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