Linda Mack of Mack International was a panelist for the Palm Beach Family Office Forum sponsored by Day Pitney on May 7th, 2024

Linda Mack of Mack International was a panelist for the Palm Beach Family Office Forum sponsored by Day Pitney on May 7th, 2024, on the topic of Compensation Challenges and Governance Structures

WEST PALM BEACH, Fla., May 31, 2024 /PRNewswire-PRWeb/ -- Linda Mack of Mack International was a panelist for the Palm Beach Family Office Forum sponsored by Day Pitney on May 7th, 2024, on the topic of Aligning Compensation Arrangements and Governance Structures with Family Objectives. The two day event was held at the Eau Palm Beach Resort and Spa. R. Scott Beach was the moderator of the session. Linda was joined by fellow panelist Hunter Guice, Principal Consultant with Botoff Consulting.

The audience was asked to complete a poll with questions regarding recruiting talent, compensation as it relates to types of long-term incentives, and current structures for family governance. Navigating the alignment of human capital, compensation arrangements and governance structures presents multifaceted challenges. The panel explored trends and strategies, while sharing insights for avoiding the obstacles often encountered in crafting compensation arrangements that reflect and reinforce the family ethos while attracting and retaining top talent. 

Family Office Talent/Executive Search
Survey Results: 61% of respondents cited primary recruiting challenges to be a combination of available talent pool and location of talent.
Linda described the overall state of the family office talent market as being "extremely competitive" and finding the ideal candidate "increasingly challenging." She explained that while the talent pool is growing with an influx of prospective candidates from corporate or institutional markets, not all can make the transition to a more entrepreneurial platform. In terms of location of talent, one challenge is economics. "Often there is a nationwide search for key leadership talent, and once that person is found, it involves a relocation. The current interest rate environment can be cost prohibitive for a family to move without a generous relocation package."

Family Office Compensation 
Survey Results: Forms of LTI: 56% of respondents cited co-investment and profit sharing as their primary forms of incentives 
Botoff Consulting has published proprietary surveys giving the family office sector better, more accurate information than previously available. The panel agreed compensation must be increasingly competitive to attract and retain key talent. Interpreting and applying compensation surveys requires a nuanced understanding, so the panel urged those considering compensation changes to seek expert advice. "The type of program will depend upon a family office's philosophy and approach and careful application to ensure they align incentives with their objectives," said Linda. "Incentives work. You get the behavior you incent, so be sure it is on target."    

Family Governance 
Survey Results: 63% of respondents cited Board of Directors, Investment Committees or Advisory Boards as their governance structure.
Linda commented on the importance of "next gen" involvement. "We are seeing a definite trend in family offices encouraging younger members to assume leadership positions. Families who intentionally structure mentoring programs and ongoing education to develop the next generation leaders are strengthening their sustainability in a powerful way."

Recruiting talent, designing the best compensation plan, and developing sound governance all continue to be hot topics for Family Offices and Family Enterprises. Retaining the leadership talent needed to enable a family to accomplish their goals and objectives is also extremely important. "The perennial challenge —of finding someone who not only has the requisite skills and experience, but who also fits the culture of the family and family office has always been and continues to be critical. With expected tenures of 10-15 years for C-suite leaders, culture fit is imperative. Once an ideal candidate is found, compensation and involvement in governance become tools for retention."

About Mack International LLC

Mack International is the premier boutique firm that specializes in providing retained C-suite executive search and strategic human capital consulting solutions to family office, investment firm and enterprise clients on a national and international basis. Clients range from first generation business enterprise owning wealth creators through multi-generational families of six or more generations. Headquartered in West Palm Beach, Florida, clients also include multi-client family offices and select investment and wealth management firms that serve family offices and ultra-high net worth clients. In addition to its executive search services, Mack International provides customized strategic human capital/talent management consulting solutions. The scope of consulting services includes succession planning, governance, next generation engagement, compensation practices, and performance metrics.

Media Contact
Isabel Bolt, Mack International, 8173015461, [email protected], www.mackinternational.com

SOURCE Mack International