Keeping great staff when the founder is hard to work for
Built on Chapter 2 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
Many family fortunes were built by demanding founders. The same drive that built the wealth can make the family office a tough place to work. When talented people leave, the family pays twice: once in lost skill and again in the long ramp-up for a replacement.
Why good people leave
In my experience, senior family office staff leave for a few common reasons.
Pay without upside. Many executives have no share in the results they help produce. When the portfolio does well and their pay does not move, they start looking.
A thrifty founder. Founders who built wealth by watching every dollar sometimes carry that into how they pay staff. One senior investment officer at a very large family office told me he felt underpaid and undervalued, and saw no sign of change. The founder had always been frugal and saw no reason to stop.
Family politics. Staff can get caught between siblings, spouses, or generations. Few things drive people out faster.
Isolation. A family office is often small. People who came from large firms can miss colleagues and a clear career path.
What helps
Share the upside. A fair base salary with a bonus tied to long-term results keeps people engaged. Deferred bonuses paid over several years, with a high-water mark, reward lasting performance and give people a reason to stay.
Give clear authority. Write down what each senior person decides and what needs family approval. Unclear authority is one of the biggest sources of friction with demanding founders.
Shield staff from family conflict. Route family disputes through a council or the CEO, not through junior staff. Let professionals do their jobs without picking sides.
Build a peer network. Encourage staff to attend industry events and meet peers at other family offices. It reduces isolation and brings fresh ideas into the office.
Talk about it openly. If you already locked someone into pay that no longer fits, raise it directly. Explain how a new structure could let them earn more when the office does better.
Set expectations at the start
New senior hires take a long time to learn a family's portfolio and priorities. It is worth asking for a verbal commitment to stay several years. It is not legally binding, but it sets the tone for both sides.
Be honest in interviews about the founder's style. A candidate who knows what to expect is far more likely to stay than one who is surprised.
A word to founders
If you are the founder, here is a hard question. Is your office a place where the best people in the field would want to work? Your fortune deserves top talent. Top talent has choices. Small changes in how you share credit and authority can make a large difference in who stays.
Make the work meaningful
Pay is not the only reason people stay. Many family office professionals value the chance to think long term, to build something lasting, and to work closely with a family they respect. Give them real projects, include them in big decisions, and thank them in front of the family when they deliver.
Watch for warning signs
Turnover rarely comes out of nowhere. Watch for senior people who stop pushing back in meetings, take fewer initiatives, or seem disengaged. Those are often signs someone is already looking. A candid conversation early can save a hire.
What to take from this
- Share upside through long-term, deferred bonuses.
- Put each senior role's authority in writing.
- Keep staff out of family disputes by routing them through a council or the CEO.
- Be candid in interviews about how the founder works.
This page is general information, not legal or employment advice. Speak with an employment attorney before changing pay or employment terms.
Questions and answers
Why do family office executives leave? Lack of upside, frugal founders, family politics, and isolation are common reasons.
How can a family keep senior staff? Share results through deferred bonuses, define authority, and shield staff from family conflict.
Should a family ask for a long-term commitment? A verbal commitment of several years can set expectations, though it is not binding.
What can a demanding founder change? How credit and authority are shared with the team, and how pay tracks results.