Linda Mack and Brian Adams of Mack International joined a panel on Family Office Compensation and Talent: 2025 Trends and Planning hosted by Katten's New York office on May 6, 2025

Malaysian Reserve

23-06-2025

Linda Mack and Brian Adams of Mack International joined a panel on Family Office Compensation and Talent: 2025 Trends and Planning exploring compensation strategies and talent management approaches hosted by Katten's New York office on May 6, 2025
WEST PALM BEACH, Fla., June 23, 2025 /PRNewswire/ — Linda Mack, Founder and President of Mack International and Brian Adams, Partner, Mack International participated in Katten's Family Office practice for a panel exploring 2025 Trends and Planning on Compensation and Talent on May 6 in New York. They were joined by Mitchel Pahl, Partner, Katten; Saul Rudo, Partner and Co-Chair for Family Offices, Katten; and Trish Botoff, Managing Principal, Botoff Consulting. The panelists explored current compensation strategies, long-term incentive (LTI) structures, and evolving talent management approaches utilized by family offices to attract and retain good talent. The event was held in Katten's New York City offices with a live audience. A virtual option was made available and recorded. Key topics were as follows:
The Increasing Prevalence of LTI Plans
A handout was distributed by Trish Botoff to those in attendance featuring data points from the 2024 survey done by Botoff Consulting. The comprehensive data represented 450 firms. Highlights included the prevalence of LTI plans being used. Over the past 10 years there has been a significant increase, from 40% to 54%, in the number of Family Offices using LTIs. Those with an AUM of $2.5B or more, 72%. Family Investment firms' use of LTIs rose to 62% with 86% of firms with AUM over $2.5B reporting use of LTI plans. Deferred incentive compensation, co-investment, and carried interest were the top three LTIs used in the market. Trish noted that for the first time since they began collecting data on use of LTI plans in 2015, co-investment opportunity (57%) surpassed deferred incentive compensation (56%) as most prevalent LTI plan type.
Recruitment and Retention Strategies in Response to Current Market Dynamics
According to Linda Mack the current market dynamics that have been anticipated for years are on the rise as baby boomers begin transitioning leadership to the next generation. 'Effective succession strategies are critical for both retiring executives as well as new leaders…'.
Brian Adams believes the situation is 'acute'. 'There has been real role and responsibility 'creep'. The leader who performed several key roles has left a gap. There is frequently a need to backfill one person with two or three people. The scope and expectations of the executive has increased dramatically, and the family office must consider whether to insource or outsource various services'.
The Evolving Responsibilities and Positioning of Family Office Executives
Linda commented about key trends and challenges her firm has observed in attracting and retaining key executives. 'Boomer 'transitions' are fueling heightened demand for succession and leadership strategies in the C-Suite and throughout the Family Office. The challenge is finding the individual who not only has the requisite skills for the position but is also the right culture fit. Family Offices are typically seeking a 10-15 year tenure, and the relationship with the family is a very personal one. Aligning with the culture is paramount for success.'
Linda explained the key role is an 'Expert Generalist'—the leader who is knowledgeable across the full spectrum of wealth management disciplines and has a profound understanding of the interrelationships between all of them, regardless of whether the service is delivered in-house or via an outsourced provider. 'Since no decisions are made in isolation, it's important that the leader has the peripheral vision to see across the entire spectrum and deep down into each vertical to ensure everything is in sync and coordinated to meet family objectives'.
Brian added that hyper specialization makes finding an Expert Generalist a real challenge. 'Rotational programs which led to a broader general knowledge have gone away. As a result there is little exposure to cross training. Once you identify a qualified Expert Generalist, an additional challenge is finding the right Culture fit. That is the 'stickiness' component that helps the new leader in aligning with the tribe and in plugging into the community and the family's values and interests. If relocation is necessary, it can pose its own issues depending on the candidate's family situation'.
Trends in Recruiting
In light of intense competition for talent, the panel agreed that Family Offices are becoming more professional and strategic in their approach to searching for key executives. It requires a strategic and comprehensive process.
Linda and Brian credit their intentional approach, deep network and proprietary 360 assessment process as critical components to a successful search. 'It allows us to acquire a deep understanding of how the family has evolved to where they are today, and their vision, goals and objectives for the future. We are then able to help them gain clarity, consensus and alignment around the definition of the position and ideal candidate that will enable them to be successful. The 'magic' in a search is three-fold: First, there must be clarity, consensus and alignment about the 'bulls' eye' and specifically what the family is looking for. Second, it is critical to have access to the universe of potential candidates, and third, the ability to effectively assess both position and culture fit'.
Building a Family Office—Where to Start?
'The approach to building a family office would be analogous to building a house,' said Linda. 'You would never build it room by room without an overall plan or blueprint.' Linda emphasized three key decision that need to be made up front:
Determining for whom you are you building the office Defining the scope of clients to be served by the office Deciding what scope of services will be offered to the Family Office's clients and which will be provided directly by the office versus those to be outsourced
Brian added that approximately 25% of Mack International's searches are for Principals/Families establishing a Family Office for the first time. Typically the first hire is an Expert Generalist—the classic leader of a family office.
The audience asked about 'virtual family offices.' Brian commented. 'There is a lot of interest and curiosity about Family Offices with first generation entrepreneurs particularly the idea of a 'virtual' Family Office. 'There is a notion that virtual platforms an provide the same scope of services of more traditional Family Office, however this means that the Expert Generalist must bring a much higher level of expertise to manage and run processes and be totally accountable. That candidate is difficult to find.'
Family Offices Building Investment Teams
There is a talent migration from institutional firms to the Family Offices and their private investment firms. Brian described the Family Office as being 'an asset class of its own'. 'Family offices are recognized as increasingly attractive to institutional talent. Reasons include the fact that they have long term patient capital and in many cases are much more flexible than traditional private equity, venture capital, or asset manager firms'.
The audience, both live and virtual, was interactive, offering great questions and comments. All appreciated the insights gained from comprehensive industry survey data presented and actionable perspectives provided tailored to family offices of varying sizes and investment focuses.
For the full recording click here to view and listen.
About Mack International LLC
Mack International is the premier boutique firm that specializes in providing retained C-suite executive search and strategic human capital consulting solutions to family office, investment firm and enterprise clients on a national and international basis. Clients range from first generation business enterprise owning wealth creators to multi-generational families of six or more generations. Headquartered in West Palm Beach, Florida, clients also include multi-client family offices and select investment and wealth management firms that serve family offices and ultra-high net worth clients. In addition to its executive search services, Mack International provides customized strategic human capital/talent management consulting solutions. The scope of consulting services includes succession planning, governance, next generation engagement, compensation practices, and performance metrics. Founder and President, Linda C. Mack has established proprietary methodologies such as the Mack 360© and is credited for having coined the term 'expert generalist' in the industry.