Are you implementing long-term incentives for key executives?
The use of long-term incentives for executives is another growing trend in the SFO space. As these practices become more prevalent, they will become increasingly necessary for attracting and retaining talent. The survey found that 51 percent of family offices use one or more long-term incentive vehicles, which is a good start, but there’s still room for improvement. These vehicles, such as co-investment opportunity, deferred bonus/incentive compensation or carried interest are all useful ways to retain talent once you’ve acquired a winning team.
As the industry continues to transform, it will be critical to evaluate how your SFO stacks up against the competition. If you’ve answered “no” to any of the above questions, it may be time to evaluate the compensation practices at your single family office. So, how do you compare to your peers?
Andrew Fay is a senior vice president and head of the Family Office segment, Fidelity Clearing & Custody Solutions.