As Europe’s ultra-wealthy prepare for the Great Wealth Transfer, many are facing an unexpected obstacle: a shortage of talent willing—and qualified—to run their family offices.
A new report by HSBC Global Private Banking and Campden Wealth, based on insights from 101 European family offices overseeing $136 billion in assets, reveals that while families are focused on delivering strong returns and integrating generative AI, their top concern is recruitment. More than a third (36%) cited a lack of candidates with the right personal qualities, while 32% pointed to weak interpersonal skills as a barrier to hiring leadership.
While leading a family office can be rewarding, compensation doesn’t always compete with the wider investment world. Average CEO salaries stand at $288,000 (€274,600), though the best-paid earn around $500,000. By contrast, private equity-backed CEOs average $447,000 (€426,000). For billion-dollar family offices, the average CEO base salary is $370,000 (€353,000), plus bonuses—still representing less than 0.04% of the family’s total wealth.
To attract talent, family offices are increasingly offering performance bonuses, co-investment options, and profit-sharing arrangements. However, these perks may not outweigh the allure of larger firms, especially as prestige and close-knit structures lose appeal for outsiders.
Historically, many leaders were family members or legacy-minded professionals drawn to the autonomy of a lean setup. But today’s next gens are often more interested in forging their own paths than continuing a family legacy—leaving leadership gaps as older family office heads retire.
One U.K.-based founder noted, “Many next gens want to build something of their own. Recruitment will only get harder. Family offices will have no choice but to bring in professionals from the broader finance world, which will change the culture.”
Some CEOs see opportunity: disillusioned investment managers, tired of regulatory red tape at large firms, are increasingly open to the simplicity and flexibility of family office roles.
Still, generational complexity adds new challenges. As one CEO managing a multigenerational family office put it: “We’ve got seven cousins from three siblings. At some point, they’ll want roles in the business. But how do you navigate that many people vying for leadership?”
The question isn’t just about finding talent—it’s about finding the right people to steward wealth across generations, while maintaining harmony and purpose.
