How billionaire families hire: trust first, then a clear job
Built on Chapter 2 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
People often assume billionaire families hire the way large companies do, with recruiters, long job posts, and big candidate pools. In my experience, most do the opposite. They hire slowly, they hire people they already trust, and they ask hard questions about what each person will add.
Trust usually beats a better resume
In many family offices, the person who created the wealth still makes the hiring calls. Trust is the first filter. Many families would rather hire someone they have known for years than a stranger who looks stronger on paper.
Some refuse to hire anyone they have not known personally or professionally for several years, even if the role stays open longer. That can look slow from the outside. From inside the family, it is a sensible guard against the biggest risk: putting the wrong person close to the family's money and private life.
Whoever you hire, run a background check and call every past employer, whether or not the candidate listed them as a reference.
Three questions before any hire
In the book I suggested three questions every family should answer before adding someone.
Will this person return a multiple of their pay? Each hire should produce far more value than they cost. The main exception is a hire that brings the family real peace of mind. An in-house advisor may not beat the market by much, but if the family no longer worries about an unfamiliar bank, that can be worth it.
Will they bring real expertise in at least one area? I am wary of anyone who pitches themselves as a generalist. Hire a specialist, such as an investment banker for direct deals or a lawyer to manage legal exposure, then widen their role over time.
Will they fit the team and the family's goals? Wealthy families meet talented people all the time. It is tempting to hire someone simply because they are smart. That leads to overhead and overlapping skills. Turning down good people is hard, but it is the right call when there is no clear need.
A job before a person
I hold our own company to the same standard. At one point, we wanted to bring in an executive we knew could wear many hats. We held off because we did not yet have a division for him to run. We were even looking at buying a business that he could lead.
That is a habit I see across billionaire families. They find the job first, then the person.
The talent pool is small
Family offices usually need one to three senior people who can handle many roles. The pool of people with real family office experience is small, and trust takes time to build. It can take years to find the right person.
Some of the best ways to find talent are informal. Families meet people at industry events and workshops, often professionals who are restless where they are. Others train newer staff through programs built for family office work.
Pay that keeps good people
Senior family office executives are expensive. Anyone capable of being a strong CEO or CIO can command a high salary in the open market, plus a performance bonus. That cost is one reason a full single family office only makes sense above a certain level of wealth.
Many senior people leave because they cannot share in the upside. Working at a family office can also feel isolating after a large firm, and family politics can wear people down. Pay design matters.
One structure I like pays a CIO a bonus in years when the portfolio beats inflation, but spreads it over several years. If the portfolio loses money in a later year, part of the unpaid bonus is clawed back. Some families go further and share a slice of gains with the CIO, usually with a high-water mark so losses must be recovered first. Those families are still the exception.
Plan for a long ramp
It can take a year or more for a new CIO to fully learn the family's portfolio and priorities. That is a big investment. I suggest asking for a verbal commitment of several years at the start. It is not legally binding, but it sets expectations on both sides.
What to take from this
- Put trust first and verify it with full background and reference checks.
- Ask whether each hire will return a multiple of their pay.
- Hire specialists and widen their roles over time.
- Tie senior pay to long-term results, with deferral and a high-water mark.
This page is general information, not legal, tax, or employment advice. Speak with an employment attorney before setting pay or deferral terms.
Questions and answers
How do billionaire families find senior staff? Often through people they have known for years, industry events, and trusted referrals.
What do family office executives earn? Senior roles pay well, usually a solid base salary plus a performance bonus.
Should a family office hire generalists? I prefer specialists whose roles grow over time.
How long does a new CIO need to get up to speed? Often a year or more.