Goldman Sachs has created a new internal Family Office division to service their top-performing executives who are on track to take home more than $30M this year.

This is a smart move by the bank which, by offering employees the same wealth management services that they offer to their most affluent clients, will create a string of new clients and welcome a large portfolio of new wealth from within.

This is a mutually beneficial initiative which will see both employees benefitting from the wealth management services they offer daily and Goldman Sachs the ability to work with affluent individuals, not only in their payroll but now also in their client base. While a pragmatic and profitable decision, was it inspired by Family Offices themselves?

After all, Family Offices as entities have been generating returns above benchmarks and providing exactly what their beneficial owners desire for decades. Not only have they served well for the beneficial owners, but they have also been rewarding for their successful employees. Family Offices have been becoming an increasingly popular career choice for professionals from the Banking and Professional Services industries over the last decade. They are attractive to employees because of the holistic type of work that it usually comes with and the sense of professional satisfaction that it provides.

To attract this talent pool, Family Offices have also been offering competitive compensation structures including some very attractive long term incentive plans (LTIP). More recently LTIP’s have been a hot topic and plans such as co-investing, which allows their top performing employees the chance to co-invest alongside their very Principals, have been making the news.

It was recently announced that Helmet Juggle, the former Managing Director of Athos Service GmbH founded his own Family Office Salvia after years of co-investing alongside his vaccine-billionaire Principals, making enough of a return to set up a Family Office of his own which now externally manages the wealth of his former Principals.

LTIPs are an exceptional way to attract and retain talent over an extended period of time while aligning their interests with the interests of the Family Office or in this case, investment bank and it is something offered to 48% of Family Office Executives today. The Goldman Sachs Partner Family Office however is open exclusively to current and former Partners and Managing Directors and comes at a time when large organisations are fighting to retain their talent.

Despite a 13% drop in Q4 2021 profit, Goldman Sachs hopes the new approach will retain a large group of their multi-millionaire employees as new clients, able to preserve decision-making and wealth in-house.

Do you think the move was Family Office inspired? Download our guide to LTIP plans here and find out what it could mean for you.