The family office CEO and CIO: who does what

Built on Chapter 2 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.

Two titles show up at the top of most family offices: CEO and CIO. Families often blur them, or give both jobs to one person. Knowing what each role does, and how to pay each, prevents some of the most common and costly mistakes I see.

What the CEO does

The CEO runs the family office as a business. That usually means choosing systems and consultants, overseeing the CIO and CFO, and helping hire the core team and the advisory board.

Often the CEO is a family member, or a long-time advisor such as an accountant or investment consultant. Sometimes the family hires the CEO away from another family office or from a private bank, where the person learned to wear many hats for wealthy clients.

What the CIO does

The CIO shapes the investment portfolio and puts it into action. That covers the investment policy, big-picture and tactical decisions, portfolio risk, and diligence on fund managers and direct deals.

Families usually want a CIO with many years of experience who understands global trends. Many are hired from private equity firms, banks, wealth managers, or investment consultants.

How much the CIO does depends on the size of the portfolio and whether the office has an active CEO and CFO. In many offices the CEO is a busy family member who cannot give the office full-time hours, so more falls to the CIO.

The pay mistake I see most

One of the most common mistakes is putting a CEO in charge of the whole organization, including the CIO, and then paying the CEO as if the job had nothing to do with investment results.

If the CIO shares in good performance, the CEO should too. The CEO is responsible for the whole team and the final results. Pay should reflect that.

When senior people cannot share in the upside, they start looking elsewhere. In my experience, frustration over pay is one of the most common reasons senior family office executives reach out to us about new roles.

One person or two?

Smaller offices often combine the roles. That can work if the person has both skills and the family is clear about priorities. As the office grows, separating the roles usually helps. Running an organization and running a portfolio are different jobs, and each deserves full attention.

I strongly prefer having at least a part-time CEO even when the CIO is excellent. Without one, the investment leader ends up handling payroll, staff issues, and vendor contracts instead of thinking about the portfolio.

How to define each role

Write a short job description for each. List the decisions each person owns, the ones that need family approval, and how each will be measured. Share both descriptions with the family and the team so no one is guessing.

Review them yearly. As the family adds generations, businesses, or direct deals, the split of work will shift.

Questions to ask candidates

For a CEO candidate, ask how they have managed a small team of senior experts, how they handle family politics, and how they choose and replace vendors.

For a CIO candidate, ask about their worst investment decision and what they changed afterward, how they size positions, and how they would explain the portfolio to a family member with no finance background.

What to take from this

Give the CEO the business and the CIO the portfolio.
Pay the CEO with upside tied to results, not just a salary.
Separate the roles as the office grows.
Write and share a clear job description for each.

This page is general information, not legal, tax, or employment advice. Speak with an employment attorney before setting roles, pay, or hiring policies.

Questions and answers

What does a family office CEO do? Runs the office as a business, oversees the CIO and CFO, and helps hire the team.

What does a family office CIO do? Sets and runs the investment portfolio, manages risk, and leads diligence.

Should the CEO share in investment results? Yes. The CEO is responsible for the whole team and its results.

Can one person do both jobs? In small offices, sometimes. Larger offices usually separate them.