The increasing professionalization of the sector is driving a sharp rise in pay gaps, placing the Chief Investment Officer (CIO) at the center of governance and wealth transfer strategies.
The global family office market has never been so structured, competitive, and unequal. The latest edition of the Global Family Office Compensation Benchmark Report 2025 (KPMG × Agreus) reveals dramatic pay gaps between regions, as well as a profound cultural shift: the CIO is no longer merely a manager; he or she is becoming the strategic linchpin of a family wealth management system that is becoming increasingly institutionalized.
A changing (and better measured) global market
The data collected is based on 585 professionals surveyed (and 20 qualitative interviews), showing a clear trend: professionalization is accelerating, governance is strengthening, and performance expectations are now approaching those of investment funds.
- 62% of respondents received a salary increase over the past 12 months, primarily due to inflation and the increasing complexity of portfolios.
- The most frequently cited operating cost is between 0.6% and 1% of AUM (36% of respondents), compared to 0.1–0.5% previously (32%).
- The most common AUM size is now $500 million–$1 billion, a sign that a level of maturity has been reached.
CIOs at the top of the salary hierarchy
The CIO role epitomizes this trend:
- Americas: approximately 16% of CIOs exceed $1 million annually (base + bonus); this is the highest level in the world.
- Asia & Middle East. Compensation packages rarely reach the US threshold of $1 million; benchmarks indicate typical base salaries of around $264,000–$396,000, with more long-term incentives (co-investment, carried interest, deferred bonuses).
- Europe. European CIOs are well below U.S. peaks: the most common range is between €264,001 and €396,000 in annual base pay, with often high variable components.
The proportion of C-level executives (CEO, CIO, CFO, COO) who received a bonus reached 84% in 2025. Among them, 28% now benefit from a long-term incentive plan (LTIP)—proof that retention is becoming a strategic priority.
Why such disparities?
Several factors explain the U.S. dominance:
- Size & asset
mix In the United States, many family offices manage several billion dollars, with a more institutional allocation (PE, VC, infrastructure). The CIO acts as Chief Risk Officer, directly responsible for the net return after fees within a more sophisticated framework. - Maturity of the model
Established as early as the 1980s, U.S. family offices have adopted governance and reporting standards similar to those of asset managers. Compensation reflects operational sophistication. - War for talent
The talent pool comes from private banking, asset management, or private equity. To compete, firms must offer: a high fixed salary, performance-based bonuses, and equity participation/incentives. - Results-oriented
culture Compensation is directly tied to tangible metrics (outperformance of benchmarks, net return, MOIC).
In Europe, bonuses remain more discretionary, often linked to client satisfaction.
Signs of Accelerated Professionalization
The figures reflect a structural shift:
- 44% of family offices now operate from two or more locations (up from 30% in 2023), reflecting the globalization of wealth.
- 43% manage the interests of two generations (up from 38% in 2023).
- 51% have a formal succession plan.
- And in more than one in five cases, the CEO is still a family member—proof that the transition to fully external governance is still underway.
At the same time, gender diversity is declining slightly: only 22% of senior positions are held by women, a figure that is down in most regions except Asia and Australia.
The Cost of Talent and Return on Investment
The report establishes a clear link between compensation levels and the size of AUM, as well as between compensation and governance. The best-structured offices (investment committee, consolidated reporting, formalized strategic allocation) pay the highest salaries—but also deliver the best long-term performance.
Far from being an expense, the CIO’s compensation becomes a driver of returns and stability: in a context of disintermediation, volatile markets, and generational succession, the CIO is the guarantor of continuity. His role extends beyond mere asset allocation: he embodies the family’s strategy, governance, and financial culture.
Europe: Catching Up, the Other Way
For European family offices—and particularly those based in Luxembourg, Switzerland, or Monaco—the challenge is clear: to compete without mechanically following the American model.
Three levers are emerging:
- Flexibility.
Giving CIOs greater autonomy over investment choices, team building, or the structuring of investment vehicles can offset a salary differential. - Incentivization.
Co-investment or carried interest plans (found in 38% of European family offices) align the CIO’s interests with those of the family while keeping fixed costs under control. - Non-financial appeal.
Location, quality of life, proximity to families, and regulatory stability remain key differentiators when recruiting senior professionals weary of institutional pressure.
Governance in need of rethinking
The question is therefore not just: “How much to pay?”
It becomes: “What strategic value should be created?”
Family offices that align compensation, performance, and long-term vision will attract the best talent—those capable of ensuring the continuity of wealth across generations. In an environment where half of family fortunes are being redeployed across multiple jurisdictions, the CIO is more than ever at the heart of the geography of power: at the crossroads of capital, time, and values.
Source:
Global Family Office Compensation Benchmark Report 2025 — KPMG Private Enterprise × Agreus Group.
