How much could you earn working for a single family office in 2025?

Investment-focused single family offices are becoming increasingly sophisticated, presenting unique challenges and opportunities in talent management. As these entities evolve, so do the compensation structures designed to attract and retain high-caliber professionals. According to Morgan Stanley’s 2025 Single-Family-Office Compensation Report, developed with Botoff Consulting, a strategic approach to compensation is pivotal in maintaining competitive edge and fostering long-term alignment between family wealth goals and professional performance.

Evolving Compensation Structures: A Strategic Imperative

Single family offices (SFOs) are not just investment hubs; they are critical instruments for wealth preservation and growth across generations. The report highlights that 62% of investment-focused SFOs have implemented formal long-term incentive (LTI) plans, a significant increase compared to the broader family office landscape, where the adoption rate stands at 54%. These LTIs, including deferred compensation, carried interest, and phantom equity schemes, are carefully crafted to align compensation with strategic outcomes like asset under management (AUM) growth and sustained performance.

The Shift Towards Family Governance

Interestingly, there is a notable shift towards family governance within these offices. More than half (53%) of investment-focused SFO CEOs are family members, compared to 27% across the broader SFO universe. This trend underscores a preference for tighter alignment between the family's wealth vision and investment strategy, ensuring governance continuity and reinforcing familial values.

In-House Portfolio Management: Confidence and Customization

Another significant trend is the move towards in-house portfolio management. Over 56% of investment-focused SFOs now manage their portfolios internally, marking a shift from the previous reliance on external asset managers. This transition reflects increased confidence in internal capabilities and allows for greater customization and responsiveness to market conditions, thus enhancing strategic agility.

Diversity and Inclusion: A Persistent Challenge

Despite these advancements, the report points out that women remain underrepresented in executive roles within investment-focused offices, comprising only 24% of leadership positions. This figure lags behind the broader family-office ecosystem benchmark of 29%. Accelerating the inclusion of female talent remains a key challenge and opportunity for SFO recruitment strategies.

Compensation Levels: A Detailed Breakdown

The report provides a detailed breakdown of compensation levels across various roles within SFOs:

- Chief Investment Officer: $900,000

- Senior Portfolio Manager: $785,124

- Portfolio Manager: $480,000

- Senior Associate: $287,500

- Associate: $242,000

- Senior Analyst: $151,853

- Analyst: $125,000

In addition, the median compensation for a CEO, COO, and CFO are $825,000, $789,807, and $620,000, respectively. These figures underscore the competitive nature of compensation in SFOs, particularly for offices managing over $1 billion in assets, where roughly 70% have LTI programs.

Key Takeaways for Family Office Professionals

- Strategic Compensation: Family offices should consider adopting structured compensation frameworks that include LTIs to align employee incentives with long-term strategic goals.

- Governance Alignment: Emphasizing family governance can reinforce alignment with the family's wealth vision, but it’s crucial to balance this with professional expertise.

- In-House Management: Developing internal portfolio management capabilities can enhance strategic agility and allow for tailored investment strategies.

- Diversity Initiatives: Proactively addressing gender diversity can improve recruitment outcomes and align with broader industry trends.

Conclusion

As family offices become more complex, understanding and implementing effective compensation strategies becomes increasingly important. By aligning compensation with strategic objectives and fostering a governance structure that supports long-term goals, SFOs can better position themselves for sustainable success. This approach not only attracts top-tier talent but also ensures the alignment of professional achievements with the overarching goals of the family's wealth management strategy.