Director of Operations
- Overview
The Role of a Director of Operations
A Director of Operations has expertise in many different areas of a family office’s operations, such as investments, wealth management, estate planning, tax, risk management and philanthropy. As the leader of the family office’s operations, a Director of Operations works closely with a Managing Director, CIO or CEO and is responsible for ensuring that the office’s activities are aligned and well integrated with the principal’s overall goals and values.
An experienced Director of Operations will be a resourceful, utility player who keeps projects running on time and ensures that a family office’s work output is completed at a satisfactory level. He or she will both enhance and help protect a principal’s wealth and legacy through their expert strategic and operational support.
- The Role Defined
Job Description
EDUCATION / EXPERIENCE
A Director of Operations will possess a Bachelor’s (B.S. or B.A.) or Master’s (M.S. or M.B.A.) degree, often in finance, accounting, business, communications, law or a related field.
Experienced Directors of Operation have 5-7 years’ experience overseeing various operational functions in a family office, wealth management or business setting. Depending on the specific needs of an office, expertise in areas such as finance, accounting, business administration or law may be required, as well as experience leading and managing others.
SKILLS
- Experience navigating complex business, legal and compliance regulations
- Wide range of experience in finance/accounting, HR, communications, legal/compliance and technology
- Strong project management experience, seeing complex projects through, consulting with others for their expertise, and learning and implementing/disseminating new information quickly
- Knowledge of the family office industry and its legal, regulatory, and operational aspects
- Familiarity with tax planning and compliance for high-net-worth individuals, trusts, and partnerships
- Expertise rafting and reviewing contracts
- Handling operations related to specific asset classes (property, art/collectibles, investments, etc.)
CERTIFICATIONS / TRAINING
Professional certification requirements for a Director of Operations depend on a family office’s investing activity and finance/accounting/tax operations. Principals may prefer candidates with any of the following (or similar) certifications:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA)
- Certified Estate Planning Law Specialist (CEPLS)
- Chartered Financial Analyst (CFA)
- Certified Private Wealth Advisor (CPWA)
- Certified Family Wealth Advisor (CFWA)
- Certified Trust and Financial Advisor (CTFA)
- Certified Investment Management Analyst (CIMA)
RESPONSIBILITIES
Responsibilities for a Director of Operations vary depending on the size and scope of a family office’s activities, but common duties include:
- Overseeing the daily operations of the company and ensuring that they are aligned with the strategic goals and objectives
- Coordinating and managing the activities and resources of different departments, such as finance, human resources, marketing, and IT
- Preparing and managing the budget, financial statements, tax filings and other financial reports on behalf of the office
- Managing the financial reporting, accounting, budgeting, tax compliance, and cash flow of the family office and its entities
- Evaluating and executing investment opportunities, such as private equity, real estate, alternative assets, and direct investments
- Providing strategic guidance and advice to the family members on various matters, such as estate planning, philanthropy, succession planning, and risk management
- Implementing and maintaining policies, procedures, systems, and controls for the family office
- Managing service providers for payroll, benefits, contracts and compliance on behalf of the office and coordinating with external advisors, such as lawyers, accountants, bankers and investment managers
- Coordinating and facilitating meetings, events and conferences involving the family office
- Liaising with family members, advisors, partners, vendors and other staff on behalf of the family office
- Supervising and developing the staff of the family office
ATTRIBUTES
Characteristics of a successful Director of Operations include:
Resourcefulness
A Director of Operations should be resourceful and adaptable in finding solutions to various challenges that arise in the course of working on a project. He or she should be able to effectively leverage the internal capabilities of the family office, as well as the external resources and advisors, to deliver optimal outcomes on behalf of the family office. He or she should be able to improvise and innovate when faced with changing or unexpected situations.
Team player attitude
A Director of Operations should be a strong collaborator, someone who is capable of building excellent rapport with other members of the family office, as well as to principals and external stakeholders. He or she should foster a positive and supportive work environment, where everyone is valued and respected; and also, be able to delegate tasks and responsibilities appropriately.
Communication
A Director of Operations should be an excellent communicator who can effectively convey complex information to different audiences. He or she should be proactive in seeking and providing feedback to staff and be responsive to their needs and concerns.
Decision-making
A Director of Operations should have sound decision-making skills that balance the interests of principal(s), while minimizing uncertainty and risk. He or she should also be able to make timely decisions that consider changing circumstances and priorities.
Strategic thinking
A Director of Operations should share the family’s vision and strategy for the family office, based on the family’s values, goals and expectations. He or she should be able to execute this strategy with efficiency and effectiveness, while taking into account market opportunities and challenges.
Organizational skills
A Director of Operations should have exceptional organizational skills that enable him or her to manage complex and diverse activities, such as finance and investment management, legal and tax affairs, philanthropy and family governance, while ensuring that all aspects of a project are thoroughly planned and executed.
Industry knowledge
A Director of Operations should have a deep understanding of the family office industry, as well as the specific needs and challenges of high-net-worth families. He or she should be aware of the latest trends and developments in the field, as well as the best practices for delivering high-quality service.
Responsibility and integrity
A Director of Operations should uphold the highest standards of responsibility and integrity in all aspects of their work. He or she should act in the best interest of the family and the business, while maintaining confidentiality and discretion at all times. He or she should demonstrate ethical behavior and professionalism in dealing with internal and external stakeholders.
COMPENSATION
Total compensation for a Director of Operations generally ranges from $125 – 300K, however high-level Directors of Operations with specialized skills or the ability to manage an extensive team can exceed this range. More senior operations roles are typically referred to as Chief Operating Officers, and are reserved for large family offices with sophisticated investment, philanthropy or estate planning activities. Factors that command a higher salary include specific education/certification requirements, industry experience, managerial experience and scope of work. Components of an Director of Operations’ compensation may include:
Base salary
A fixed annual amount received for performing duties as agreed upon. A Director of Operations’ base salary varies greatly depending on the size, complexity and location of the family office, as well as the experience and qualifications of the Director of Operations.
Discretionary bonus
Discretionary bonuses are variable amounts that are paid annually based on an individual’s performance. The percentage of compensation paid as a salary versus a bonus is entirely up to the employer, but for a Director of Operations, discretionary bonuses typically range from 10 – 25% of total compensation. The most common reason for a higher bonus percentage (relative to salary) is to tie an employee’s compensation to their overall performance. It also allows an employer to set strategic goals during the employee’s annual performance evaluation, with the pay out of their bonus linked to the completion of stated goals.
Equity
With equity compensation, a portion of the employee’s compensation is paid in options, restricted stock or performance shares, which represents ownership in a business or fund owned or managed by the principal. Options can have a vesting period and/or expiration date, which affects their overall value. Equity compensation strongly incentivizes long-term employment and can be a great tool for building a team that is dedicated, loyal and aligned with the overall vision of the principal/family office.
Co-investment
The opportunity to invest alongside the family office in various deals or projects that are sourced or executed by the family office. Co-investment opportunities can allow a Director of Operations or COO to benefit from favorable investing terms, access to exclusive deals or higher returns. Co-investment terms may or may not require an employee to commit a portion of their compensation directly to family office investments, to ensure that both parties share in the risk and/or potential profit of an investment.
STANDARD BENEFITS
Directors of Operations at a family office typically receive the following corporate-style benefits:
Medical, dental and vision
Standard health benefits help employees stay healthy, reduce absenteeism and ultimately increase productivity.
Retirement savings account
401k, thrift savings plan or simple IRA, especially with employer matched contributions, shows your employees your commitment to their future.
Paid time off
PTO allows your employees to take time off from work for various reasons, such as vacation, sickness, personal matters or holidays.
Travel/miscellaneous expenses
Expenses incurred when travelling or conducting business on behalf of the office, including transportation, accommodations, meals and other costs related to business travel. These expenses may be reimbursed or covered by a travel allowance or budget.
OTHER BENEFITS / "PERKS"
Additional benefits are often included to enhance the attractiveness of an employment offer, as well as encouraging long-term employment. Such benefits include:
Education
- Tuition reimbursement, scholarships/savings plans for those with college-aged children
Professional development
- Encouraging and covering an employee’s participation in training courses, workshops, seminars, conferences or professional certifications
Health and wellness
- Healthy food, beverages or snacks offered at the office
- Paid or discounted gym memberships or fitness classes
- Access to wellness programs with counseling services, health screenings, substance abuse treatment, etc.
- Life and disability insurance
Employee assistance
- Financial counseling
- Legal advice
- Transportation reimbursement or allowance
Charity
- Volunteer opportunities
- PTO days for community service
- Charitable match program
Family benefits
- On-site childcare or childcare reimbursements
- Parental and family medical leave
Workplace
- Remote work/flexible hours
- Casual work attire
- Employee recognition programs, awards or rewards
REPORT STRUCTURE
A Director of Operations generally reports:
- To a Managing Director/CEO/CIO of a family office
- To other director-level staff in Finance, HR, etc.
- Directly to the principal(s)
Depending on the structure of a family office, a Director of Operations may act on their own or as part of a larger operations team. As such, a Director of Operations may or may not be responsible for directly managing other family office staff.
Optimizing Efficiency, Driving Growth
The Director of Operations ensures that all operational functions are executed seamlessly. From overseeing daily operations to managing budgets, processes, and systems, they create strategies that enhance productivity, efficiency, and effectiveness. This role involves managing teams, developing operational procedures, and ensuring that all aspects of the family’s needs are met consistently and with a high level of quality. A Director of Operations is responsible for implementing the operational strategy of the family office and ensuring that all departments work in harmony to meet the family’s objectives.
With their leadership, the Director of Operations ensures that everything is running smoothly, allowing the family to focus on their priorities without concern for day-to-day matters.
Adam Cook
Managing Director, Old State Staffing
- Operational efficiency
Turn Strategy Into Action
Why You Should Consider a Director of Operations
A Director of Operations is crucial to ensuring that all areas of the family office are functioning effectively at all times. They bring structure and leadership to the day-to-day operations, ensuring that all systems are in place to meet the family’s needs. A Director of Operations can help you:
- Oversee daily operations, team management, and workflow processes
- Implement operational strategies that align with family goals
- Manage and optimize budgets, resources, and systems
- Develop and refine operational procedures to improve efficiency
- Ensure operational tasks are completed on time and at a high standard
By hiring a Director of Operations, you create a foundation of efficiency and organization within your family office, empowering the team to perform at their best.
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