Mark Somers is the co-founder of the Somers Partnership, an executive recruitment firm specializing in family offices and wealth management. With over 25 years in executive search, he works with global clients to attract and retain top talent. He is also the author of How to Work for a Billionaire, a guide for professionals who wish to embark on a career in a family office; and Family Office Fundamentals: Human Capital Matters: The Principals; Guide to Creating, Staffing and Future-Proofing your Family Office, which features insight and advice from 50 family office principals, professionals, academics, influencers and thought leaders from across the global family office ecosystem.
What are some of the greatest challenges you face in finding the right talent for family offices today? How have these challenges evolved over the past few years?
Over the two decades we have been recruiting in the family office sector, the landscape has become increasingly sophisticated, and this has given rise to two distinct challenges. First, there is an increased demand. This comes not just from the rise in numbers of family offices globally but also from the great transfer of wealth that is underway. With the next generation coming to the fore, we are seeing a lot of regenerating and restaffing within family offices as the next gen finds their parents’ advisers have become obsolete to their new needs.
Second, there is — and has always been — a scarcity of real talent. The skills needed to excel at serving a family are rarefied, and great family officers are uncommon and more in demand than ever.
At the same time as these two forces converging, talent has become more global, with seasoned family officers willing to move internationally from opportunity to opportunity.
What qualities and skills do you believe make a candidate a strong fit for a family office role? How do they differ from those sought in other financial sectors?
Working for a family office is not about simply maximizing financial returns. The defining distinction between a good family officer and a great one is their ability to apply the concept of stewardship. Longevity and good governance take on far more meaning when thinking in generational terms. Over the last 20 years, we have learned to look for family officers possessing at least the majority of the following qualities: stewardship, fiduciary mindset, appetite for higher purpose, humility, an enthusiasm for hard work, strength of character, diplomacy and emotional intelligence. All in addition to the relevant professional expertise for the role.
How does recruiting for family offices differ from recruiting for private equity firms or other financial institutions?
It is far easier to operate in private equity than it is in a family office, as there are fewer competing considerations to weigh. In a private equity firm, there is really just one driver — financial capital. Within a family office, every decision is weighed against five forms of capital: intellectual, human, social, spiritual, financial. When we look for candidates, we look for people who know why they want to work for a particular family office rather than somewhere else. We also ask the same questions of the family office because, from a recruitment perspective, the alignment of values far outweighs the rather more nebulous notion of culture fit.
What are the top trends you're seeing in family office recruitment, particularly regarding skill sets, roles or cultural fit?
I have worked in this sector for over 20 years, and it is apparent that [the next generation] has caused a shift in the values of family offices and a rebalancing of the importance of the various forms of capital. As well as more dynamic modes of communication to different stakeholder audiences, we are seeing increased need for family officers with global geopolitical awareness and the ability to work with or for neurodivergent principals. Specific roles that have emerged in recent years include those covering succession planning, interim roles that are project-specific and, of course, the increasing need for chief learning officers as families look to guide their children through a holistic educational journey.
Tell us about your experience managing compensation expectations for family office professionals. How do compensation structures differ from traditional financial firms, and how do you address any disparities?
Financial firms have easy-to-measure input and outputs, and their intentions are comparatively short-term. While family office compensation is, of course, normally expressed in financial capital, its determining factors are far broader, and the time frames for assessment are far longer. Every search we undertake requires us to assist in the creation of a bespoke compensation structure that will attract, incentivize and retain a trusted family officer. There is no universal solution, and we work with our family office clients to ensure the values and purpose of both the family and the family office align with the desired behaviors and output of the executive.
Gray divorce, remarriage can complicate a family office
By EMILY BOUCHARD
In today’s world, the golden years are no longer a guarantee of marital stability. With the rising trend of “gray divorce” — when older couples split up and recouple — many family offices find themselves navigating complex relationship transitions. In those situations, family offices face unique challenges, as new spouses or partners, blended families and evolving estate plans disrupt what were clear lines of inheritance structures and governance.
Gray divorce, which refers to separations among individuals age 50 and older, has become increasingly common. Between 1990 and 2010, the divorce rate among adults over 50 doubled in the U.S., and by 2022 it had tripled among those 65 and older.
This shift reflects a change in generational attitudes, particularly among baby boomers. Contributing factors to the rise in gray divorce include increased life expectancy, greater financial independence, changing social norms and the desire for personal reinvention later in life.
Divorce and remarriage later in life introduce complexities that require family offices to balance financial stewardship with relational sensitivity. Some key areas of consideration include:
Inheritance concerns and asset distribution: Adult children often worry that a stepparent could dilute their expected inheritance. This concern increases when a father remarries someone younger and starts a second family. A common scenario to anticipate is when a stepparent outlives the spouse. Do the second wife and her children continue to live in the family home with all the belongings that may have sentimental and significant monetary value to the stepchildren? Or are the stepchildren the beneficiaries of the family home? Does the stepparent get to stay and pay rent? Or will the stepparent be asked to leave?
Potential for family conflicts: With divorce and the addition of new family members, conflict can arise due to divided loyalties, broken promises and unexpressed resentments. Tensions are likely to increase if estate plans are changed. Family members who are employed by the family enterprise can become aware of allocations of resources to half-siblings and their stepparent, while other family members are not. This can strain loyalty and trust and may trigger legal issues.
Litigation risks: In gray divorce and remarriage situations, a lack of transparency about changes in estate plans can foster resentment and animosity. Family members who feel excluded often imagine “worst case” scenarios. Without clear communication about the degree of changes and how expectations and promises will continue to be met, there is a greater likelihood of distrust, misunderstandings and potential litigation.
Best practices
To help families manage the complexities of gray divorce and remarriage, family offices can consider implementing the following practices:
Use clear governance structures: When divorce happens, so does confusion about who will be involved and to what degree — especially if new partners or spouses, and their children, join the family system. One way to minimize confusion and allow for appropriate integration is to ensure governance frameworks are adapted to include new family members while continuing to honor previous ones.
Invite the family to co-create or revisit their decision-making process and their family constitution: Do their shared family values need to be further clarified? Does their conflict resolution policy need to be updated? Will their family employment policy need to be redefined? A process of inclusion yields greater engagement and greater likelihood of adoption, especially with those who will be impacted by the resulting decisions.
Consider having clear criteria for who is eligible to participate in an owners council or a family council, with the understanding that the definition of “family” may have changed. These councils can address significant issues related to designing and enforcing family policies and standards.
Focus on transparency: Family offices can advocate for consistent communication with all family members and help establish a framework to discuss sensitive issues. One way to do this is by establishing a cadence of regular meetings to facilitate ongoing dialogue and keep family members informed of financial and estate planning updates. Open forums for discussion can help dispel assumptions and provide clarity. Using third-party facilitators for these discussions can also add a neutral perspective and create a safe environment for candid conversations.
Consider the benefits of pre- and post-nups: Family offices can help mitigate the risks associated with gray divorce and remarriage by advocating for prenuptial and postnuptial agreements to protect all parties. According to Andrea Vacca, a collaborative divorce attorney and mediator, “These agreements not only encourage the married couple to have open and honest discussions about their expectations and desires for how their newly blended family will or won’t share in the couple’s wealth, but they also help prevent conflicts over the estate in the future.” And for couples who choose not to remarry but live together, there is also great benefit in having a cohabitation agreement.
As older couples pursue personal reinvention, their choices can reshape family dynamics, complicate financial legacies and create challenging transitions. Family offices play a crucial role in balancing these financial and relational considerations, helping families stay aligned with their goals while managing the intricacies of wealth preservation and distribution.