Linda Mack of Mack International co-chaired a roundtable discussion at the Institute for Family Governance (IFG) conference held  on December 1, 2022, in Miami, FL.

Linda Mack of Mack International co-chaired a roundtable discussion on the topic of compensation  at the Institute for Family Governance (IFG) conference held on December 1, 2022, in Miami, FL.

 

West Palm Beach, FL — Linda Mack of Mack International co-chaired a roundtable discussion on the topic of compensation  at the Institute for Family Governance (IFG) conference held on December 1, 2022, in Miami, FL. She was joined by Ron Botoff of Botoff Consulting. The roundtables offered were a series of “How to…” train, think, change and be successful on a variety of subjects. Linda co-chaired one entitled, “How to Think about Compensation for Family Office Executives – Dos and Don’ts.” 

Compensation plays a significant role and continues to be a hot topic for Family Offices. The group was eager to discuss current trends and key criteria to consider when structuring compensation plans.   Linda cited an intensely competitive market and increased access to information requiring Family Offices and Enterprises to keep pace in the recruiting, compensation, and retention arenas. “Whether considering employment agreements, performance management or compensation packages, the trends all point to more formalized strategies and methodology,” noted Linda. “At the C-suite level, the majority have employment agreements and compensation agreements are increasingly being documented prior to candidates accepting an offer.” According to Linda, more formal, and sophisticated (qualitative and quantitative) performance-based plans are part of these arrangements. A well-defined, objective and results driven plan, with measurable metrics for success defined up front are helping Family Offices attract the talent they are seeking.

Linda emphasized that boundaries put on compensation ranges can have significant implications on recruiting the best candidate. Candidates expect to be offered market competitive packages. In addition to bonuses and annual incentives, Linda noted that Mack International is seeing an increasing trend towards the use of long-term incentives (LTIs), including co-invest and carried interest.  “The content of the job will benchmark the compensation range and total package. We encourage our clients to view top talent as an asset vs. a cost. The right hire should and will provide a valuable return on investment.  Being thoughtful about the family’s goals and objectives and tying incentives to those performance metrics is critical. Long term incentives should align with family philosophy and culture. Incentives definitely drive behavior,” cautioned Linda, “so be very sure to test whatever plan you design to insure it is incentivizing the behavior you want  – and avoid the risk of unintended outcomes.”

Linda encouraged families to view every person they hire as a return on investment. Compensation is important but factors such as apportioning resources and authority commensurate with accountability as well as formalized governance and succession plans are also crucial to both attracting and retaining talent.

 

About Mack International

Mack International, LLC is the premier retained executive search and strategic human capital consulting firm focused on providing solutions to single family offices/family enterprises, multi-client family offices, and the full spectrum of wealth management advisory, investment management and financial services firms that serve the ultra-high net worth private wealth and family markets.

Institute for Family Governance 

The Institute for Family Governance’s (“IFG”) is to achieve long-term value creation for families by implementing strong governance that endures.  This is accomplished by empowering beneficiaries through inter-generational planning. IFG includes thought leaders from around the world as a global organization with annual conferences for the Unites States, Europe,  Latin America.