MARKETS

Morgan Stanley report reveals family office salary growth outpaces U.S. market



morgan stanley (NYSE:)’s Single Family Office Advisory Group, in collaboration with Bottorf Consulting, released its third biannual compensation report on Wednesday. The report examined more than 400 single-family offices and found that salary growth at these offices continues to outpace the overall U.S. market.

The survey results show that more than half of family offices are experiencing recruitment challenges, particularly in accounting, tax, investment and support roles. More than 90% of companies report increasing employee pay in the past year, and incentives such as bonuses remain strong for 82% of employees.

The report also highlighted that women hold nearly one-third of executive positions in family offices, outpacing U.S. corporate data on women’s leadership roles. Long-term incentive (LTI) compensation plans are increasingly being used by family offices, with 59% of all respondents reporting their use. For companies with more than $1 billion in assets under management (AUM), this number rises to 72%.

‚ÄúToday, employers in nearly every industry recognize that the talent and compensation landscape is rapidly evolving. Our research uses data to analyze trends through a lens unique to family offices. “It’s even more important to have,” said Valerie Wong Fountain, Family Office Resource Partner and Head of Platform Management at Morgan Stanley.

While most geographic premiums are consistent with historical trends, some traditional “high cost” markets are trending downward. Conversely, in states such as Florida, Nevada, and Wyoming, relocations and the establishment of family offices are increasing competition for talent and premiums.

The survey showed that 94% of staff have received or will receive an annual salary increase in 2023. This is above the general trend in the US market, where many single-family offices are planning pay increases of 5% or more.

According to InvestingPro Tips, Morgan Stanley, a prominent company in the capital markets industry, is rapidly burning through cash as its earnings per share continue to decline. Despite these challenges, the company has maintained its dividend for 31 consecutive years and increased its dividend for nine consecutive years. According to data from InvestingPro, the company has a market capitalization of 14.178 billion and a P/E ratio of 14.18.

The report also discusses key compensation drivers and factors family offices should consider when benchmarking data, including geography, competitive industry, performance, company characteristics, and the position itself.

The findings of this study provide information for family offices facing staffing decisions in a highly competitive talent environment. Family offices have access to benchmark data so they can make informed decisions and develop compensation strategies to recruit and retain skilled talent.

Trish Botoff, Founder and Managing Principal of Botoff Consulting, expressed her appreciation for participating in the study and said it would help principals and teams evaluate compensation, align goals, and make informed decisions. He said he continues to focus on expanding the depth and validity of compensation data to achieve this goal. Reward, retain and motivate family office talent.

Family offices are becoming more professional, strategic and proactive in serving the needs of families. To meet the demand for more advanced platforms and systems, family offices are hiring from a steadily expanding pool of talent. Therefore, you need a competitive compensation package to attract and retain top employees. For more insights and tips on Morgan Stanley, we recommend visiting InvestingPro.

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