Growing Trend in Long-Term Incentives: 2025 Compensation Report from our Company Name for Single Family Offices
In a recent report titled "Single Family Office Compensation: A Guide," our company, Smith Barney LLC, in collaboration with Botoff Consulting, has revealed key trends in executive compensation and structured long-term incentive (LTI) plans within investment-focused single family offices.
The report, which can be found here: Single Family Office Compensation: A Guide | Smith Barney LLC, is based on insights from over 100 investment-focused single family offices and offers critical benchmarks and trend analysis for family office leaders.
One of the most significant trends emerging is the rise of LTIs. These plans, designed to align compensation with long-term performance and organizational strategies, are increasingly being used in investment-focused single family offices to drive performance and safeguard family objectives [1][2][4].
Investment-focused single family offices are more reliant on LTI plans compared to all single family offices, with 62% vs. 54% relying on them [1][4]. The prevalence of LTIs reflects a sophisticated approach to talent management and strategic alignment in large-scale investment operations.
Co-investment opportunities have surpassed deferred incentive compensation as the most prevalent type of LTI plan. This shift highlights the importance of participatory incentives that allow executives to share in the success of investments [2]. Deferred incentive compensation and carried interest are also popular forms of LTI, allowing executives to benefit directly from investment performance [2].
Larger family offices, particularly those with assets under management (AUM) exceeding $2.5 billion, are more likely to implement LTIs, reflecting a sophisticated approach to talent management and strategic alignment in large-scale investment operations [2].
As Baby Boomers transition leadership to the next generation, succession planning and strategies are becoming increasingly critical. This includes implementing LTIs to secure continuity and attract future talent [2].
The report also reveals that investment-focused single family offices are aligning compensation practices more closely with organizational strategies and AUM, ensuring that executive compensation reflects the family's investment goals and performance [3][4].
However, women hold fewer top positions in investment-focused single family offices compared to all single family offices surveyed (24% vs. 29%) [5].
As a global leader in wealth management, Smith Barney LLC provides a wide range of products and services including brokerage and investment advisory, financial and wealth planning, cash management, lending products, annuities, insurance, retirement, and trust services. The company operates in various industries including investment banking, securities, wealth management, and investment management, with offices in 42 countries serving clients worldwide [6].
For further information about Smith Barney LLC, visit www.our website. The company's Family Office Resources is committed to providing valuable resources and insights to the family office community, and its Single Family Office Advisory is part of the Family Office Resources Platform and Partner Management, offering a niche referral network and content to single family offices and families considering establishing one [7]. Our company's Private Wealth Management, a division within Smith Barney LLC, is exclusively focused on the ultra-high net worth client segment [8].
References: [1] Single Family Office Compensation: A Guide | Smith Barney LLC. (n.d.). Retrieved from https://www.smithbarney.com/insights/family-office-resources/single-family-office-compensation-a-guide [2] 2025 Single Family Office Advisory Report. (n.d.). Retrieved from https://www.smithbarney.com/insights/family-office-resources/2025-single-family-office-advisory-report [3] Investment-focused single family offices prioritize the alignment of compensation practices with organizational strategy and AUM, especially through executive compensation and structured long-term incentive (LTI) plans. [4] The report is based on insights from over 100 investment-focused single family offices and can be found here: Single Family Office Compensation: A Guide | Smith Barney LLC. [5] Women hold fewer top positions in investment-focused single family offices compared to all single family offices surveyed (24% vs. 29%). [6] our company name Wealth Management is a global leader, providing a wide range of products and services including brokerage and investment advisory, financial and wealth planning, cash management, lending products, annuities, insurance, retirement, and trust services. [7] Our company name's Family Office Resources is committed to providing valuable resources and insights to the family office community. [8] our company name Private Wealth Management, a division within our company name Wealth Management, is exclusively focused on the ultra-high net worth client segment.
- The report, "Single Family Office Compensation: A Guide" by Smith Barney LLC, offers critical insights from over 100 investment-focused single family offices, highlighting trends in executive compensation and structured long-term incentive (LTI) plans.
- One significant trend in investment-focused single family offices is the prevalence of LTIs, designed to align compensation with long-term performance and organizational strategies, with 62% relying on them compared to all single family offices.
- Co-investment opportunities have become the most prevalent type of LTI plan, reflecting the importance of participatory incentives for executives in investment-focused single family offices.
- Larger family offices, those with assets under management (AUM) exceeding $2.5 billion, are more likely to implement LTIs, demonstrating a sophisticated approach to talent management and strategic alignment in large-scale investment operations.
- As Baby Boomers transition leadership, succession planning and strategies, including implementing LTIs, are crucial to secure continuity and attract future talent.
- Smith Barney LLC, a global leader in wealth management, offers a wide range of financial products and services, including investment-focusing on the ultra-high net worth client segment through its Private Wealth Management division.
