Key Insights from the 2025 KPMG Family Office Compensation Benchmark Report: A New Zealand Foreword
In our previous article, we discussed the increasing tendency for family businesses to approach growth with a focus on values and purpose. The 2025 KPMG Family Business Report identified several important themes that can help family businesses develop their identity and strengthen their legacy. When managed thoughtfully, the next generation receives more than just leadership responsibilities - they also gain the opportunity to redefine what success means for the family.
This article explores the role of Family Offices in helping high-net-worth families manage their wealth, investments, and succession planning. The 2025 Global Family Office Compensation Benchmark Report, produced by KPMG Private Enterprise and the Agreus Group, offers valuable insights into current trends, challenges, and practices in these global organisations.
Many of the global insights from the report will become increasingly relevant to New Zealand as Family Office structures mature and become more connected to the wider global economy.
We have outlined the key points from the report to support future generations in a family business as they establish their Family Office:
Professionalisation & Governance
- There is a clear trend towards increased professionalisation in Family Offices, with more formal governance structures, clearer reporting lines, and well-defined roles.
- Succession planning is highlighted as a critical area, with many Family Offices still lacking robust plans, exposing them to leadership and continuity risks.
Compensation Structures
- Compensation packages are becoming more sophisticated, often including a mix of base salary, annual bonuses, long-term incentives, and non-monetary benefits.
- Benchmarking against both local and international peers is increasingly common to attract and retain top talent.
Roles & Responsibilities
- The report details compensation for a wide range of roles, from CEOs and CIOs to investment professionals, operations, and administrative staff.
- There is a growing demand for specialists in areas such as ESG (Environmental, Social and Governance), digital transformation, and risk management.
Incentives & Retention
- Long-term incentive plans (LTIPs), profit share and co-investment opportunities are increasingly used to align staff interests with family objectives and promote retention.
- Non-financial benefits are highly valued. Examples include flexible working, professional development, and wellness programmes.
Challenges & Opportunities
- Family Offices face challenges in balancing privacy with transparency, managing generational transitions, and competing with institutional employers for talent.
- The report encourages offices to adopt data-driven approaches to compensation and to regularly review and update their frameworks.
Our report, A New Zealand Foreword for the Global Report, highlights that the outlook for Family Offices is one of continued growth. Regardless of where a Family Office is in its lifecycle, there is a need to use independent data to benchmark remuneration to attract the best talent to support the family’s growth journey.
An advantage of operating in a smaller economic environment is the agility to pivot and adopt innovative strategies to mitigate potential risk factors beyond our control. However, as the sector matures, integration with the global economy will become inevitable, and Family Offices are reminded of the following best practices:
- Benchmark Regularly: Use independent, up-to-date data to ensure the competitiveness of remuneration and skills.
- Formalise Governance: Establish clear policies for compensation, performance evaluation and succession.
- Tailor Incentives: Align rewards with both family and staff objectives.
- Invest in Talent: Prioritise ongoing development and create pathways for career progression.
- Promote Culture: Foster a positive, purpose-driven environment to attract and retain high-calibre professionals.
The 2025 Global Family Office Compensation Benchmark Report underscores the importance of professionalisation, robust governance, and competitive, well-structured compensation to ensure the long-term success and sustainability of Family Offices worldwide.
Locally, Family Offices often have blurred lines between personal and business affairs, with compensation decisions sometimes driven by loyalty or emotion rather than robust benchmarking. This report encourages families to implement a more professional approach to attract the talent needed to continue their intergenerational family legacy.
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Jane Fletcher Director – Family Business, +64 27 481 1010 |
As family businesses look to grow with purpose, having a trusted partner can play a valuable role in supporting strategic transitions. If you have any questions or would like further information about this report, we’d love to connect and explore how we can support your goals.
KPMG is a professional services firm with global reach, and deep expertise in audit and assurance, tax and advisory and in the family business sector.
