Top salaries in Australia's family offices have dropped below $1 million, reflecting a shift in priorities during a period of economic uncertainty. Firms are aiming to contain compensation costs in response to inflationary pressure, although they continue to compete for top-tier investment talent.
Family offices now play a growing role in Australia's private capital market. There are around 2150 such organisations employing an estimated 20,000 to 30,000 people. These entities manage private wealth for high-net-worth families and have been expanding into private equity and private credit. However, economic challenges, market volatility and evolving wage expectations are influencing how pay is structured.
Recent data shows that CEOs in family offices are now earning between $500,000 and $625,000 in base salaries, with performance bonuses ranging from 21% to 30%. Two years ago 8% were earning more than $1 million a year, but no CEOs have reported receiving seven-figure base salaries in the current period. Total remuneration is now evolving from simple cash packages to more complex arrangements involving discretionary bonuses, equity, carried interest and co-investment options.
The scale of the family office also impacts pay. One in three manage portfolios valued between $500 million and $1 billion, while 5% oversee up to $5 billion. CFOs are earning between $264,000 and $330,000, a decline from previous years. Many advance internally rather than being hired externally. Compared with global counterparts, Australian CFOs receive comparatively lower compensation.
Although base salaries have levelled out, 60% of family office professionals received pay increases this year, mostly under 10%. This is a slowdown from the more aggressive increases seen after the COVID-19 period, when demand for talent surged. Bonuses are more selectively awarded now, with nearly 75% of staff receiving one, though only 15% of these were linked to long-term incentives such as equity or multiyear performance plans.
Men over 50 still hold the majority of CEO positions, but the changing pay structures - more aligned with broader investment management sector standards - indicate a long-term strategy to draw in younger, more diverse professionals. Despite these shifts, the limited uptake of structured incentive plans highlights that this part of the industry is still in the process of modernising its employment practices.
